Restaurant delivery services were becoming popular prior to the pandemic. In the midst of COVID-19 and all that came with it, those services boomed. As a restaurant owner or manager, you may be wondering if you should still consider delivery as an option, how you might go about implementing the service, and which organization is best. Making the decision requires some thought and comparisons.
Some people fear that with the vaccine and restaurants now being open for dining in will result in a loss of need for delivery services. While there has been an increase in dining in, patrons still enjoy the ease of delivery. Although staying home is no longer a requirement, restaurant delivery services will remain essential throughout 2022. From a desire to stay home, harsh weather conditions, or simply the convenience of having delicious food delivered to your door, restaurant delivery services will remain relevant for quite some time.
How do you know if you should utilize a third-party service or simply hire a delivery driver? An in-house delivery driver can be costly, and although there are some benefits to that model, there are also benefits to contracting a third party. Third-party apps can garner business for your restaurant that you may have missed out on otherwise.
A third-party service will take a fee, typically around 30% of the bill. While this amount may seem like it will cut into your profits, consider how much it might cost to hire a driver and manage deliveries on your own. Many restaurant managers feel that 30% is a fair asking price to take care of the entirety of the delivery process. However, other restaurant managers make no profits when this fee is taken, thus resulting in a pointless sale. An established restaurant may find more value in hiring its own drivers.
Hiring in-house drivers requires an online ordering system, pay for the drivers, vehicles, gas, benefits, and other expenses. If delivery orders make up a good portion of the business, hiring your own drivers can be highly beneficial. Hiring drivers also gives the restaurant the ability to choose the kind of person that delivers the items. The restaurant can handle complaints more simply, and management can monitor the customer service.
DoorDash is the third most common app for food delivery, with Uber Eats taking second place. However, Uber Eats users, on average, spend less money than those using DoorDash. Where Uber Eats takes a 30% commission from restaurants, DoorDash reportedly takes closer to 20%. It is also said that DoorDash has more fees for the customers, which may turn off patrons from using the app.
Deciding for your restaurant requires examining your profit margins. Imagine paying 30% of each guest check to a third party and thinking about how that might positively or negatively impact the restaurant. It would help to calculate how much it would cost to hire delivery drivers. Weighing your restaurant’s pros and cons can help you determine the best course of action.
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