CCO, Sprink.Online.More From The Author >>
How Businesses Are Opting To Be More SaaS-Y In The New Normal
Digital adoption and access to better connectivity, and digital payments has led to a shift in the consumers’ behavior and preferences.
In the present times, businesses offering food services are largely focused on 'on-demand’ needs. Online food delivery platforms are able to cater to spontaneous orders and fine dining restaurants fulfill the need of providing food wanted at the time of celebrating special occasions and moments. Both these business models are unable to provide food services for daily needs that require services to be affordable and ideal for daily consumption. which is also the primary demand in every day scenario. Providing inexpensive, quality, daily meals with a variety of menu at no delivery cost for the online food delivery platforms and dine-ins in their existing current models is not ideal for their business sistainence.
Food is a necessity for people. However, the modern customers have busy lives and erratic schedules. This leaves them no scope for spending their hours in grocery shopping, deciding the menu, or cooking meals thrice a day. Even their demands are rapidly changing. They just don’t want fresh food delivery but also a convenient experience that can be enjoyed more frequently or daily and at a certain cost that can be afforded for daily use. Thus, the food subscription model is emerging to be the feasible solution that is beneficial to both food business owners and customers. It is also emerging as a game changer for the online food business and is transforming the sector with its rising demand and popularity.
The shift in consumers’ behavior
The rising need for convenience pushed the growth of the online food businesses. The pandemic further boosted the food category and businesses embraced the online route to survive and thrive the challenging times. Online food delivery thus became the lifeline for the suffering restaurant sector and other food businesses.
Digital adoption and access to better connectivity, and digital payments has led to a shift in the consumers’ behavior and preferences. People are more comfortable using digital apps and subscription led services. They have been using subscription-based services for various needs such as entertainment (OTT), telecom services, furniture, groceries, and now, food. As a result, over the period of time, there has been an exponential growth in the subscription concept for many frequently-consumable products and services. Using food subscriptions like ours, they can have easy access to home-cooked food that is hygienically prepared, offers the homely touch and is delivered right at their doorstep at minimal or free delivery charges.
Food subscription models - Designed for the new uncertain business world
Online food delivery platforms occupy a prominent position in our lives. But what also holds true is the fact that food subscription models are gradually emerging to be a successful concept best suited for uncertain times. Food sectot is still healing from the effects of pandemic and predicting profits in an unpredictable world is a challenge for many business owners. Subscription models garner profits in areas of revenue prediction, customer retention, managing customer expectations, optimising operational costs, and producing more affordable food without compromising on the quality of other important factors, which then is useful in predicting ROIs and basically becomes a more tested way to a business model that has more chances of succeeding in the new future.
Emerging customer segments that wants homely food over junk food
Homemade and healthy meals are witnessing a surge in their preference amongst the millennials, Gen Z and Y. These sections of the population are health conscious and are now moving away from junk, oily
and spicy food. They now prefer a well-balanced diet that is packed with nutrients for their daily meal requirements. Since they can’t invest their time and efforts in preparing food every day and professional cooks are unable to satiate their requirement for nutritious meals. Ordering in every day isn't a suitable option and hence, a daily meal subscription that is powered by technology is a much more preferable solution to their daily struggle with food.
Customer acquisition and retention
Customers that subscribe for the meal plans are likely to repeat their orders. Food businesses offering subscription plans can earn recurring revenue from their loyal subscribers. They are already well versed with their customer needs and demands and hence can make informed business decisions accordingly. With a subscription-based model in place, food businesses don’t have to worry about the gaps that make customers feel unsatisfied. They connect with their customers in an informal manner and modify their services as per their requirements and preferences.
The power of tech behind subscription models
These days, like most services, subscription models are backed by advanced technologies and occupy a prominent position in the food segment. Semi-automated or fully automated tech based processes help businesses handle their day to day operations more efficiently, including production of food or logistics and helps keep the costs in check. Moreover it also creates a more transparent system which can be data-checked and corrected anytime for optimum output. All of this roughly translates into customers getting better products and services and the businesses bleeding less profits.
Food subscription models transforming online food segment
The customers' rising demand for meal subscription plans can solely be attributed to the plethora of benefits that they offer. They not only offer diverse choices of meals at convenient pricing and help save customers' time, money, and efforts, but also provide an exciting menu, are cost-effective as compared to dine-in or take away, offer food that tastes homely, is prepared hygienically, is delivered at their doorstep as well as is easily accessible. It is these benefits that make food subscriptions an ideal food business model in the present times. Subscription led food business is a new path to many online food businesses and is set to bring the next wave of evolution for the industry in the times to come.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
Around The World