Bakery Growth Strategy: How Delivery Can Support Your Business
Businesses around the world are going through a difficult period, especially small, family-run businesses with limited staff. During the pandemic, those that adopted digital solutions and used social media managed to survive — and in some cases even expand within their sector. Especially for bakery businesses, there are many ways to use digital tools to bring your products to more consumers and to ensure the sustainability of your business, even under challenging conditions.
Your online presence and the ability to sell your products digitally will create a steady stream of income, which in most cases is long-lasting and tends to grow. A large percentage of consumers — over 50% (especially after the pandemic) — order online at least twice a week.
See below all the steps for a successful online expansion of your business.
- Choose the method for your online sales
One of the most important decisions is how your products will reach the consumer remotely. Your business’s online image is extremely important, as it is the only point of contact for the customer who will place an online order without ever visiting your physical store. Additionally, delivery applications help most shops attract more potential customers, since they receive thousands of users daily. There is also a segment of consumers who enjoy trying new flavors and discovering new places — and a delivery app is the ideal way to reach them.
Your business must ensure it has the proper equipment and enough staff to fulfill the increased number of orders on time. Choosing the right delivery platform is crucial for your expansion. Delivery apps and services have proven to significantly contribute to increasing online sales and expanding the customer base. Most applications operate with a commission per order. However, make sure to read the contract carefully before signing and consider all the parameters involved.
- How to choose the right food delivery partner
Step 1: Do thorough research
Choosing the right food delivery partner is extremely important.
With delivery apps appearing one after another, the differences often lie in the fine print. Ask the delivery app you’re considering to provide information about the number of users in your area, how they handle negative or positive comments and customer reviews, and examine the app’s technical support — both for businesses and for the general public. Are they polite when speaking to a retail customer on the phone if something goes wrong with an order placed through the app?
This could easily happen to one of your customers.
Step 2: The time factor
Consumers order food online for many reasons, and the most important is the lack of time. Delivery time is a crucial factor in achieving successful online sales. The workflow of orders and daily operations must be adjusted so your business can meet the demands for fast delivery while maintaining product quality.
Step 3: Calculate all your costs (including hidden ones)
Increased delivery sales do not always mean increased profit.
If the food delivery company you’re partnering with charges a commission per order, you’ll need to factor in many elements:
- Will you need extra staff to handle deliveries?
- Will you need additional equipment or delivery vehicles?
- What is the true cost of an online order for your business, including transportation costs, driver wages, and the platform’s commission?
Many businesses set a minimum order amount for purchases through food delivery apps.
Step 4: Avoid long-term contracts
Many shops work with more than one delivery app.
Your business should not hesitate to end a partnership if a provider’s app doesn’t meet your store’s needs. A customer may never have visited your physical store, but they may “know” your business solely through online orders. If the app’s image or technical support does not represent your business the way you want, a short-term contract gives you flexibility and more freedom to switch providers.
Good luck!