Why innovations are driven by large corporations in Café industry?
According to Business Insider, mobile pre-ordering is expected to be a $38 billion industry by 2020.
Starbucks has introduced Mobile Ordering platform a few years ago. Following the customer pain, Costa launched Costa Collect feature in 111 London-based stores prior to an expected extension of the initiative in the new year, hence, a huge investment to R&D and infrastructure.
Let’s look at the numbers:
The average cost to make an app ranges from £80K – £250K+, depending on what type of app you want to create: Simple apps cost up to £40,000. Basic database apps cost between £100,000 – £150,000. And the cost covers the cost only for the basic app. When infrastructure, staff, marketing and time is taken into consideration – cost does increase drastically.
Are all small and medium cafes deemed to be following the Customer Pain and always be a step behind the big players?
What about white labelling an app with the theme of your Café?
White labelling is one of the solutions but usually, the cost of that starts from £10,000, in addition to preparation and several months it takes to make it.
Finally, is there a way to be innovative and don’t break the bank?
One solution would be a subscription service. Let’s look at the pros of that:
·No R&D costs.
·Can be launched straightaway.
·In case no one is using the preordering service, free cancellation – cost-free.
·A better way to know your customer.
·Quality control – statistics and metrics of a café shop.
There are several startups that focus mainly on Food Delivery, as everyone knows Uber Eats and Deliveroo.
Let’s look at WioPay, it’s an Order & Collect app, which is used by small and big catering companies in the UK, allowing to serve customers faster during the peak time.
It’s risk-free, the pricing was calculated to be beneficial for both, WioPay and Cafés. Assuming the average margins per transactions a Free plan for new customers were introduced, which means £0 spent to try out, all you need is a smartphone or a tablet (it can be your personal one, it runs smoothly in the background).
WioPay has started a marketing campaign since 2019, sponsoring new clients with a £1,000 for marketing purposes of the new locations. Any size businesses, cafes, restaurants or catering services can check it out at WioPay.com, there’s no downsizes or contracts involved.