Launch Your Own Food Delivery App & Say No To Third Party Commissions
The restaurant industry has changed a lot over the years, but it still remains one of the most profitable industries in the world. One of the biggest changes in the restaurant industry was when people started using food delivery apps.
Ordering through a food delivery app has increased by more than 20% in the previous five years. And it’s not going away anytime soon. Online meal delivery is expected to exceed $220 billion by 2025, accounting for around 40% of overall restaurant revenues.
Based on these statistics, we can infer that online ordering is no longer a thing of the future. It is here and now.
If you have a business in the restaurant industry, should you launch your own food delivery app?
Here Are Some Reasons Why You Should Say No To Third Party Commissions:
No tips
Users may leave tips on most third-party delivery services, but solely to the drivers. Tipping the restaurant establishment is not an option, especially the service crew that prepared the food.
As a restaurant owner, you have a responsibility to ensure that your employees are being fairly compensated for their work. The least you can do is offer them an option for receiving tips from customers.
Backlog in the kitchen
Delivery orders might quickly overwhelm your kitchen, especially if a big group of customers walks into your restaurant suddenly. Although you may disable delivery options during busy hours, you never know when your off-premise customers will collide with your on-premise consumers.
Giving up control of your delivery
Hiring a third-party service means handing over control of your delivery process and putting your confidence in another company to handle your consumers as well as you would.
Restaurant operators should be concerned since 80 percent of consumers believe they will blame the restaurant rather than the delivery service if something goes wrong. You may also lose a channel of connection with your consumer, and you may miss out on critical feedback.
Flaws in your delivery
Your meals may be hot and ready for pickup, yet it lingers on the counter for an extended period of time due to a late delivery driver.
If the meal arrives cold, spilled, or late, the restaurant will almost certainly take the blame and will have to deal with a negative review. Customers, as previously said, are quick to blame the restaurant rather than the delivery service. To some extent, you may mitigate by using correct packing.
Excessive commission fees
According to CNN Business, commission rates may be significant, with restaurants paying 15 percent to 30 percent for each order placed through third-party platforms. Because the profit margin in the restaurant sector is roughly 5%, some establishments may find themselves delivering meals at a loss unless they boost their pricing.
