The COVID-19 emergency has been a life-changing time for all, but especially those who work in the restaurant & hospitality industry. With restaurants converted to takeout only, owners and management are struggling to come up with unique solutions to generate business and stay afloat. With the popularity of apps like DoorDash and Uber Eats, many are considering including this in their business model. Before making any changes to your business, it is important to know the facts. Here’s what you should know before you book a third party delivery service.
Third party delivery services can be a great option for restaurants and customers alike. Some popular delivery services include:
Listing your restaurant in a delivery app will of course lead to an increase in sales. The majority of diners are using third party apps to see what dining options are open and delivering. Increasing sales is a main objective, especially during these challenging times. This increase in sales will allow you to keep as much of your kitchen staff working as possible. It will also generate more revenue!
There are significant costs & fees involved with any third party delivery service. Uber Eats, GrubHub, DoorDash, The commission charges of most third party delivery services range from 20-35% of sales. Depending on your business’s average overhead, this can negate the increase in sales.
With a third party delivery service, the food order is literally out of your business’s hands once it is picked up by the driver. Although drivers are typically screened and act as professionals, there is always a small chance of tampering. There is also the risk that the product gets damaged, dropped, or left to sit for too long before delivery.
While third party delivery services have their positives, increasing sales from within the business is always the best option whenever possible. Creating a delivery position for your existing employees is a great alternative to avoid the costs and hassle of a third party delivery service. This also allows your employees the opportunity to earn tips on top of what you pay them, while taking away the commission fee of a delivery service.
The key to success with delivery (and every other service) is to make sure your customers know that you are offering it! A restaurant consultant can help you get your delivery service up and running, and inform you of the best ways to advertise this. For professional restaurant & hospitality advice, contact the team at Avery Restaurant Consulting! (617)970-8566