January 13, 2025
The restaurant industry has transformed dramatically with the rise of digital food delivery. The Canadian food delivery market, now valued at CAD 6.8 billion, showcases how these platforms are revolutionizing restaurant operations nationwide.
Online food orders grew by 36% during the pandemic. The food delivery market in Canada is showing a 6.33% year-on-year growth. At this rate, the Canadian food delivery market volume is expected to reach a revenue of US$ 19.03 bn by 2029.
The food delivery industry has innovated quickly in recent years. Now, players like iOrders.ca have come up with commission-free delivery services that will increase the profitability of the restaurants.
Let us ride through history and find out how food delivery apps have impacted restaurant sales, how COVID-19 inspired technological innovations, and how consumer behaviors shifted to online buying.
The journey of food delivery apps began with basic telephone ordering systems in the early 2000s, evolving into sophisticated digital platforms by 2010.
Early players like Just-Eat (now Skip The Dishes in Canada) laid the foundation for a revolutionary change in food service.
The COVID-19 pandemic boosted digital adoption, transforming delivery from a convenience to a necessity.
An analysis by Revenue Management Labs demonstrates that a meal costing $11.30 in a restaurant can cost the customer $19.40 through a delivery app.
This shift dramatically impacted restaurant management, requiring new systems for order processing, delivery coordination, and customer service.
Traditional point-of-sale systems proved inadequate for managing multiple delivery platforms, leading to operational inefficiencies and increased costs.
Modern platforms like iOrders now offer comprehensive systems combining online ordering, delivery management, and marketing automation.
These solutions integrate seamlessly with existing restaurant operations using QR code ordering, smart review systems, and AI-powered analytics to streamline management and boost efficiency.
The use of food delivery apps has expanded the reach of the restaurant market, with Canadian restaurants reporting a significant increase in order volume through digital platforms.
Earlier, the restaurants were limited to in-house business and could only access their local area.
But with these food delivery apps, they are now able to tap into new customers, have access to large areas, and extend operating hours without any additional infrastructure costs.
Food delivery platforms in Canada typically charge restaurants commissions ranging from 11% to 30% per order
SkipTheDishes is known to charge restaurants a commission of around 20-30% per order, while other platforms like DoorDash and Uber Eats often charge even higher rates, especially during peak times.
This challenge has led many restaurants to seek commission-free alternatives like iOrders, which allows restaurants to maintain profitability while meeting delivery demand.
Now, let’s understand how consumer behavior has changed in recent years after COVID-19 and how it has helped these restaurants grow multifold.
The widespread adoption of food delivery apps reflects fundamental changes in consumer lifestyles and expectations.
In Canada, digital food ordering has become deeply embedded in daily routines because consumers cite convenience as their primary motivation.
Consumer psychology even influences ordering patterns and frequency.
Moreover, weather conditions, work-related stress, and entertainment choices (like movie nights) directly impact food delivery decisions.
Modern food delivery apps use these behavioral insights to help restaurants implement smart marketing campaigns and loyalty programs that resonate with customer preferences and psychological triggers.
With the change in consumer behavior, it has become inevitable for restaurants and service providers to make further advancements in food delivery service apps that can lead to profitability for restaurants and ease of access for customers.
The food delivery industry continues to advance due to introduction of AI and technological advancements.
Commission-free platforms and these technologies make restaurants more efficient, sustainable, and profitable food delivery operations.
Food delivery platforms have undoubtedly expanded restaurant customer reach and digital presence, but the high commission fees have impacted profit margins, particularly for smaller restaurants.
Restaurants are now searching for sustainable solutions that balance digital presence with profitability. It's time for hybrid models that combine the convenience of digital ordering with greater efficiency and profit.
Partnering with technology providers like iOrders helps you grow your business multifold by using their innovative services like:
Commission-free solutions like iOrders offer a compelling alternative for Canadian restaurants looking to maintain control over their digital presence while maximizing profitability.
To explore how to optimize your restaurant's digital presence while maintaining profitability, visit:
