Consumers are evolving, and they expect products to be delivered faster and more efficiently. Individuals were increasingly replacing carryout orders with deliveries even before last year's COVID-19 flux of delivery orders, with 21% switching to home drop-offs, according to a survey conducted by Restaurant Business.
However, as more people began to use delivery services, restaurants began to turn to third-party vendors, despite the fact that this reduced their profits. Some things are out of their control because restaurant businesses lose control over delivery when they use these services. In this post, you'll learn why restaurants continue to rely on third-party delivery services, how to avoid common pitfalls, and how to set up and market a business-controlled delivery service tool.
Why Are Restaurants Using Third-Party Aggregators?
Restaurants benefit from third-party vendors for a variety of reasons. For starters, they can be beneficial to new restaurants that may not have the financial or organizational resources to operate their own delivery service. When a company is first starting out, not having to allocate funds for delivery can be extremely beneficial.
Being associated with one of these services can help an established restaurant reach out to new customers. Because of a vendor's current partnership with Google, businesses that are featured on a delivery service like Zomato can appear at the top of Google results. That is what is known as free advertising.
It also eliminates a step for customers: they can simply click “order online” instead of going to another website or downloading another app. Remember that streamlining the ordering process increases the likelihood of them using your service again.
The Most Common Issues with Using These Tools
Despite the numerous benefits that third-party delivery services can provide a company, there are some drawbacks to using them. The additional cost to a restaurant is one thing. Vendors frequently charge a 15-30% service fee, which can be detrimental to the restaurant's bottom line. In addition, delivery drivers report to the delivery company rather than the restaurant.
This may have an impact on the condition in which food items arrive at their final destination. Drivers for third-party vendors such as Zomato, Swiggy, and DoorDash are attempting to pick up as many orders as possible in order to earn a living, which frequently results in juggling multiple food orders, resulting in customers receiving soggy or cold food.
Customers ordering food when a restaurant is closed is another issue. Opening times are not always kept up to date on online ordering sites. When a customer orders something by mistake, they may be forced to cancel their plans and deal with refunds when the restaurant closes.
Another issue is when a restaurant is experiencing a dinner rush or an influx of orders and is having trouble keeping up with delivery orders. They have no way of controlling the third-party tool or preventing orders from being placed. Customers who order on the third-party site without knowing this information may be upset or confused. It's easier to turn off deliveries completely when you use an in-house tool.
When a business updates its menu, the third-party site may or may not reflect the changes. From time to time, all restaurants must change their menus or implement price increases. These changes, however, are not always reflected on the delivery site. When someone orders an item that is no longer available, this can put a restaurant in an awkward position.
How to Create a Website or App for a Restaurant
If a restaurant wants to create their own delivery tool, the first thing they'll need is a website or an app. Building a website can be done using software such as WordPress or a website builder such as Wix or Shopify. There are frequently free trial periods available. Many website builders have an app store where users can purchase and install delivery apps like doordash.
In a similar way, an application is created. A web search can turn up a slew of services that can assist a company in developing and personalizing its app. AppMakr and ShoutEm are two platforms worth considering. The cost can range from nothing to a small monthly fee once again. A restaurant can take more control of its delivery service using either the website or the app.
Businesses must also set up their staff or location to handle delivery services in addition to developing these technology tools. They may need to hire delivery personnel or renovate their distribution prep area. There are also other options to consider, such as purchasing delivery vehicles and special packaging, obtaining driver insurance, establishing a reliable tracking system, selecting a method of communicating with delivery personnel, and selecting a payment processing method.
Marketing Ideas to Encourage Your Restaurant to Take Direct Orders
A delivery service can be promoted in a variety of ways. Placing a banner on the restaurant's website, posting about it on social media, or ordering a radio, TV, or print ad are all examples of small advertising opportunities. Restaurants can also run specials or promotions centered on their delivery services.
Restaurants will have a lot of data to comb through once a delivery service is up and running, looking for patterns or frequently ordered items. They can then create a campaign based on this information, such as a “buy one, get one” offer. Restaurants can collect feedback from customers about delivery services, as well as data, and use this information across advertising platforms.
Google Ads is part of a larger marketing strategy. This strategy places the app or website at the top of Google's search results. This option, however, will necessitate investments.
Restaurants must choose between outsourcing delivery to third-party vendors or embracing their own delivery method as more consumers have their food delivered to them. Whatever decision they make, the ultimate goal is to keep customers coming back.
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