Before COVID-19 hit the world, the on-demand economy was ignited by Netflix, Uber, and Amazon Prime had already initiated its influence on the restaurant industry. More consumers today prefer convenience in almost all aspects of their lives, even when it comes to food.
Now that we are all living in the new post-COVID world, there has been a continuous increase in demand for food convenience which became a huge necessity resulting in many brands hopping on the food delivery service bandwagon. This is why restaurants are doing their best to make this service available also since most of them can’t operate due to strict government restrictions, relying on third-party delivery providers or coming up with their own service using an online ordering system.
If you’re a restaurant owner and you’re still thinking of whether you should jump on the bandwagon, here are some pros and cons of offering food delivery services.
PRO: Increase in Sales
One of the obvious advantages of restaurant owners today who are offering food delivery options is the increased revenue they’ll most likely earn. Since your restaurant will only have a limited number of seats, particularly, during this time right now with COVID-19 volume restrictions. Having delivery services will make sure that you’re considering the needs of your hungry customers.
PRO: Provide Convenience to Customers
Food delivery is such a relief for so many people since they are able to order their favourite comfort food from their couch while binge-watching the newest Netflix shows and movies and have their food delivered to their front door. Yes, sounds pretty great, right? Not only millennials are attracted to this convenience but also a lot of different types of customers. For instance, parents who don’t have the time to cook and prepare food, can simply use online food delivery and feed the entire family without the need to stress about what to cook. The convenience provided by online food delivery services is the most appealing benefit.
PRO: Less Overhead
If delivery becomes the scale of your business or if you plan to change to a ghost kitchen model, you may consider downsizing your space to save more money on rent or front-of-house to save on labour.
PRO: Reach New Customers
Delivery services can help you connect to more customers outside of the locals, regulars, and other customers from closeby neighbourhoods, which is particularly important when restaurants are operating at lessened capacity or people are careful about eating outside. And this service is also needed by potential customers who live in urban locations that don’t have access to a car.
This is where third-party apps enter the picture since they can help boost this reach and they double as marketing platforms. When you sign up for DoorDash, Ritual, or Caviar, you’re placing your business in front of their group of millions of customers. You can get your menu right in front of diners who are outside normal walking distance!
PRO: Account for Reduced Foot Traffic
Many provinces and states already started some soft reopening for restaurants around the world since vaccine supplies are getting more available today. However, they still need to deal with quite strict restrictions that limit the volume of guests that can dine in at any time. Providing delivery can counterbalance the income lost from half-empty or closed dining rooms while gaining new customers who are either still terrified of going out or are practising shelter-in-place, even as restrictions are getting lifted gradually.
CON: Less Control Over the Customers’ Delivery Experience
It won’t really matter if you’re using a third-party or in-house fleet, you don’t have complete control over a customer’s experience with delivery. Customers may have a bad impression of your restaurant because of traffic problems, poor road conditions, or wrong directions– delays that don’t have anything to do with you or with the quality of the food. But if food arrives cold or it was presented in a bad way after the trip, then that can negatively impact the customer’s opinion of your restaurant. And you may have fewer opportunities that can turn into an unpleasant experience around because you are not there personally when customers eat your food.
CON: Overworked Employees
Since delivery services are highly in-demand right now, it may somehow slow down your kitchen operations. Additional orders may pile up and you need to complete them immediately, resulting in your staff working harder with the increased demand. It’s your priority also to give your customers an amazing experience and avoid them from waiting, ending up receiving cold and mediocre food. In order for you to not experience this problem, try limiting the takeout orders to a shorter menu. In addition, you may want to consider hiring more kitchen staff that can help prepare delivery orders.
CON: Smaller Profit Margins
Of course, when using your own delivery fleet, you are required to pay for your delivery drivers, their insurance, gas, and everything you need to operate the service. These types of costs immediately consume up your profit margin.
If you’re utilizing third-party delivery services, there would be costs also. Third-party delivery apps have been denounced for having high fees even before and especially during the pandemic.