Sokrati Local provides digital marketing to over 500 restaurants all over India – driving awareness, customers & revenues on a daily basis. Leveraging its data-driven platform, we’ve identified interesting patterns in the food & restaurant category. Its fascinating to see dynamic transformation in lifestyle patterns of the urban population around the food habits, demand for different types of cuisines. Interestingly enough, the research also draws insights on cuisines preferred around different days of the week. Read the whole case and be amazed like we were.

The Eat Theory: A Case Study on Ordering Food Home

The growing middle class in India and nuclear family system on a rise have had a synergistic effect on the Restaurant business. With higher disposable income, increased wait times at restaurants and convenient internet connectivity, ordering food is on the rise. It is not only logistically difficult to go out often to grab a meal but also more expensive to dine-in.

Current decade has seen huge change in the way we Indian’s eat. People now have evolved taste for fine dining, specialty restaurants, exotic cuisines, fast food, multinational food chains and traditional Indian food. Indians now have access to all of these at the convenience of home. Home delivering is the fastest growing segment in organized restaurants and projected to grow significantly over the next 5 years.

Working with various restaurants has given us an opportunity to understand ordering in this vertical in depth. We noticed some interesting patterns while working on digital marketing strategy for restaurants. We are excited to share our findings about restaurants.

The underlying data is from the month of May to September 2014, for around 70 restaurants offering various types of cuisines. During this period we saw a 300% increase in number of orders generated. Average order value increased on month on month bases and grew by 28% in 4 months. The orders were generated via their website and online advertising, and hence were fully trackable.

Food Ordering – Distribution by Cuisine Type and Day of the Week

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 Order Distribution by Cuisine Type (in %)

Blog graph2Average Order Value – Average Sales (in Rs) per order placed

More than 60% of the orders are placed with restaurants that can be categorized as serving Indian Food, Biriyani or Pizza. The order ticket value (sales per order) is highest for bakery while Biriyani and Subs compete for second space.

We received more orders on Weekends (Friday to Sunday) and Tuesday. Number of orders placed is typically low for Monday, Wednesday and Thursday. Nearly 41% of orders are placed in just 2 days – Saturday and Sunday.

Even though more orders are placed on Sunday, sales are highest for Saturday. 30% of sales revenue for orders comes from Saturday only. Average Order Value is the highest on Saturday and lowest on Thursday.

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Day wise Distribution of Orders and Revenue

We delve deeper into the cuisines that got us maximum number of orders. The ordering pattern on weekdays for our 3 major cuisines – Indian, Biriyani and Pizza, appear as follows:

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Day wise distribution for Cuisine Types – Indian, Biryani and Pizza

While on Sunday and Friday, customers placed equal number of orders for all 3 types of cuisines, on Saturday people prefer Indian and Biriyani over Pizza. Biriyani is clearly a weekend favorite. Orders for Biriyani stoop down on Monday and recover in weekends.  While Indian Cuisine shows a similar pattern like Biriyani, number of orders for Pizza does not show much fluctuation, except for Sunday.

The CTR and Cost per Order Connection

We got an average CTR (Click-Through-Rate) of 4.8% for Restaurants. As the CTR improves (increases) average Cost per Order reduced significantly. The CTRs in the range of 5-6% generated maximum number of Orders, the thickness of the line in the below graph represents the number of orders.

Blog graph5Weekday wise Distribution of Orders and Revenue

New Customer Vs Repeat Customer Analysis

New Customers have 15% higher average order value than Repeat Customers. Average order value for new customers is the highest on Friday and Saturday. These are good days to focus on new customer acquisition. Makes sense to roll out offers, up bids and run display campaigns – as higher CPLs would be offset by higher AoV. For repeat customers, it’s the highest on Tuesdays and Saturday. It makes sense to push remarketing campaigns on these days.

Percentage of orders from new customers is highest on Monday and Wednesday which implies that people are more willing to try out a new restaurant on Monday and Wednesday. These are good days to focus on for App Install Campaigns and Offers on Signup.

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We tried to identify keywords which are often used to search for restaurants. The word frequency ranged from 1 to as high as 0.9 million. The word cloud below represents words that created impressions more than 1000 times for placing orders. Greater the word size higher the frequency.

People search by cuisine and location. Most often searched cuisines are Indian, Biryani, Pizza and Chinese. People also use terms like Best, Restaurant, Online and Home very frequently.

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75% of users never scroll past first page of search results hence it is very important to have your ad on first page. Our search ads managed to secure Average position in the range 1 to 4 on all days of the week, typically placed between 2 to 4.

Blog graph10Summary

One size doesn’t fit all and more so when the Digital Marketing space is so dynamic. These insights have helped us in understanding how customers search for restaurants and customize our strategy based on them.

Growth in number of orders by over 300% over a period of 3 months, makes us believe we are doing things right.

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