When the mobile app strategy has been brought to the F&B industry, it has seen many ups and downs. While many owners have made money creating mobile apps for their business, many have struggled and many have failed in making money through a mobile app.
So, before you start building apps for your food business understand the causes of success and failures of food apps that may help you learn less.
Let’s see some of the food apps who have failed to make money.
SpoonRocket, an on-demand food delivery startup company who have recently halted operations after failing to make money. Its failure has become one of the biggest lessons for food delivery apps industry. Basically, Spoonrocket was the first of its kind, who used to sell meals cooked in its own kitchen. However, later the competition for an on-demand food delivery increased and many rivals entered into this business such as Sprig and Munchery. But soon SpoonRocket realised that they are unable to raise the capital for its business and was losing money as well due to which they won’t be able to compete.
Apart from this, there are some Indian startups who seems to be failed to make money like TinyOwl and Zomato. TinyOwl, one of the Indian food ordering startup recently fired a few of his employees as the company is cutting cost. Similarly, Zomato fired almost around 300 employees, and the reason behind this has been leaked somehow as they are not able to meet their sales target. At first, all these food tech startups managed to raise a great amount of fund, but, due to a lot of competitors set their foot in the market with their new features, the existing markets somehow failed to save them from slipping through.
They have learnt that just with some computer skills, idea, and some capital, it’s not enough to make money and stand-out in the competitive market.
What could be the possible reason behind the failure of food apps?
Why these food apps failed? Well, there were different kinds of reasons can be raised for the fall of such food tech startups, however, the two major reasons possibly could be: intense competition and an inaccurate business model. Be it for restaurant discovery apps, fine dining, and restaurant deal apps or food-sharing app, if these two areas you are not taking care of, then it’s time to stop and look back at how this can be achieved.
You might also like to know some common reasons of failure of food tech apps in order to dive deep into the problems and take some important lessons to consider and they are:-
- Lack of experience
- Low capital
- Lack of originality
- Slow performance
- Relying on the product to sell itself
- Poor knowledge of competition
- Poor app marketing
Knowing the reason behind the failure of food apps beforehand might help you get some lessons and from that, you may achieve success for your next food app in the future. There are basically many challenges comes when it’s about surviving among the competitors and many reasons why it fails. And you might want to get some deep insights to understand the reasons why it fails. If you would like to know some instructions regarding failing reasons check out this blog post by UnSpun Consulting Group who have explained reasons why food tech startups are failing.
But there are also food tech startups who are getting a lot of buzz and hype through the food apps.
Creating an ultimate experience for food seekers was never so easy. The advent of mobile apps has changed the way completely. It has become the secret ingredient for the success of food apps. However, it’s important to keep in my mind that you do it the right way. Let’s take some examples of a few successful food apps:
- Urbanspoon – One of the smartest and most-sought-after app that serves exactly what the customers anticipate. It is one of the most convenient food restaurant searching app which allows to share and compare the reviews to find the nearest and best restaurants nearby.
- FourSquare – This app is known to be one of the pocket-friendly city guides that help to find places to eat, drink and visit from anywhere in the world. So, let people travel anywhere in the globe, with the help of FourSquare they will not only find new places but they can also share their experiences and favourite things as well as follow people who share their experiences. Truly amazing, isn’t it? That’s why people are more fond of this app to download and have it on their devices.
- Find.Eat.Drink – The name of the app itself is self-explanatory. It’s one of the great apps that attract more number of customers as the information about the places on the app are the recommendations that come from the top professionals including chefs, sommeliers, food artisans and bartenders so that people can choose and customize their plan accordingly.
How to avoid food apps failure and make it a mega hit among your customers?
As with the increasing hectic life, no one has time to cook, or go and search for a good place to eat. Everyone wants to sit back and relax, and someone will provide them delicious food in their hands. At that time, a well-designed app solves the problem. In order to make an app successful, you have to keep a few things in mind such as:
- An app must have some unique features providing something extra or different from others that will attract the customers.
- Always have pictures of food recipes in your app that would give your customers a clear picture what they are going to order.
- When it’s about ordering food, the customer should always get the order history whenever they want to see. This also helps to re-order the food from the history.
- The feature order tracking helps customers to track how long the order will take to get delivered.
- Besides, it’s also important that your app provides accurate and exclusive information that is easily understandable to the customers, whether it’s about price, recipe, payment details or any other feature.
- Easy and secure payment is one of the bigger fish to fry carefully. Payment information is the most sensitive part that needs to be matching the level of security.
Now that you know what are the areas have to be developed in order to get success through food apps, it’s obvious that not doing them can drag your app into the deep pool, where coming out of it will be tough.
The mobile app is a competitive market, where everyone else out there is trying to build a unique app. Every startup in food tech business is trying hard these days to mark a position among the market leaders and come up as one of the leading competitors to grow the brand name and make money.
To make your app succeed you need a smart app, a business strategy and a top mobile app development company who will make you stand out among your competition. Riktam, as one of the top mobile app development companies, helps to develop mobile apps for both Android and iOS devices that would stand out from the rest. With our professionals and expert team of mobile app developers, we provide strategic advice to enhance and grow your business through the mobile app.