Pros and Cons of Offering Delivery
Delivery service was once reserved for foods like pizza and Chinese take-out. It later evolved to the ability to order from your city’s most prestigious eating establishments. Fast forward into a new decade, and the ability to order food right to your doorstep has taken the delivery game to another level. Inevitably, the ability to order what you want, when you want, and where and how you want it will continue to evolve. Consumer choice is king.
Revenue segmented from online food delivery alone is projected at more than $122 million in 2020 with an annual growth rate of 7.5% between now and 2024. Platform-to-consumer delivery services like DoorDash and Uber Eats are expected to increase by $164 million in the next four years with restaurant-to-consumer deliveries increasing by $232 million. Companies like these have gained significant traction over the years by getting ahead on their delivery plan of action. Here’s how you can, too.
Although restaurant delivery services can be beneficial for customers and your business, there may be a few downsides to take into consideration as well. Below, we’ll highlight both the pros and cons associated with implementing delivery services at your establishment.
Pros and Cons for Offering Delivery
By offering delivery, you’ll definitely experience a few positive changes right off the bat:
- Increase profit potential. Restaurant seating is limited. However, by offering food delivery you’ll likely see an increase in both business and revenue because you expand your customer reach beyond the walls of your physical restaurant. As you explore delivery options, make sure you are prepared to handle the additional volume. This means increased staff, including drivers, and a way to track orders and delivery times so your meals arrive fresh and hot to your customer’s door. Implementing a delivery management system that’s fully integrated with your point of sale (POS) will optimize your door-to-door operations and help you track and manage all orders in real-time.
- Gain more exposure. Your restaurant will be exposed to an entirely new customer base when you start delivering. You’ll likely see an increase in traffic from third-party delivery sites, like Grubhub and Doordash, and your reputation will be on the line with each delivery you make. Don’t be surprised if your restaurant’s Yelp traffic also increases.
- Experience a busier kitchen. With delivery, there’s less downtime for your kitchen staff, as customers know they can get food virtually anytime. You’ll still be busy during your standard hours for peak business, but you’ll find increased orders during nontraditional hours too. Streamline your kitchen processes with a kitchen display system (KDS) that connects directly to your POS. This will improve your order management and eliminate any gaps with automatic syncing between your POS and KDS.
- Attract new customers. When offering delivery you’ll need to reach a new customer base with coupons, offers or other traffic builders. Many people will try a new place if a coupon or offer is appealing to them.
Delivery will certainly change the way you do business. In order to stay on top of things, you’ll need to be aware of the new challenges you’ll face.
- Order influx. While picking up the phone works okay for reservations and carry-outs, you’re in entirely new territory with delivery. The increase in volume makes tracking and processing orders paramount to your success.
- Multiple deliveries. It would be nice if each order could be delivered individually, but that’s virtually impossible—especially in busy times. Your drivers will need to handle multiple deliveries in all parts of town. You’ll need a system to streamline this process or many of your customers will be eating a cold dinner.
- More data to manage. Keeping track of your customers by name, address, or email address is essential to a smooth delivery process. This system also needs to work in tandem with your online ordering system to assure the right food gets to the right place at the right time.
- Operational complexity. Incorporating the increased business into your current business management software can be overwhelming. Ensure you have a POS system that can keep up. When you include the new categories like driver delivery time, payments, and tip tracking, the possibility for error or non-compliance becomes a big concern. Make sure you have a handle on reporting, bookkeeping, and scheduling so you can stay on top of your operations.
Revel Systems was the first company to provide a fully integrated delivery management console that handles all of these issues and a host of others, assuring a successful transition into the delivery business. With a solid partner like Revel, the move into delivery will be fast, smooth, and profitable!