With 86% of consumers using off-premise services at least monthly (Technomic Inc.), it’s clear that the ease and convenience of ordering online, paying online, and eating at home appeals to a growing segment of the population.
If you don’t jump on the food delivery service bandwagon, you may be making yourself less competitive, as the number of restaurants who have done so has grown exponentially. As food delivery is projected to increase 12% per year over the next five years (Technomic Inc.), consider how partnering with a third-party delivery service can have a far-reaching impact on your brand awareness and revenue.
Advantages of Partnering with Delivery Services
- You can service both potential new customers and loyal regulars.
- You don’t have to hire additional delivery staff , resulting in cost savings.
- Your volume of business could potentially increase — if your restaurant is small with limited seating, those limitations don’t exist with third-party delivery. Similarly, you may see an increase in business on slow days or inclement weather days.
- The delivery services will generally promote your restaurant, saving you from extra advertising costs. However, it’s a smart strategy to market this new option on your website and social channels to generate awareness.
Stand Out From Your Service
One primary challenge with third-party services is that customers may be loyal to them, but are they loyal to your restaurant? Promote your restaurant through your delivery service in strategic ways – brand packaging with your logo or include takeout menus, business cards, or branded recipe cards in every takeout bag.
Popular Restaurant Delivery Services
Once you’ve decided to partner with a delivery service, the question becomes: which one? We’ve highlighted two popular services, but it’s always smart to do a thorough investigation to verify associated costs and contractual obligations before choosing the service that’s right for your operation.
Partnered with over 100,000 restaurants across the country, GrubHub is the leading delivery service available in over 2,000 U.S. cities. They take a commission from orders placed at partner restaurants; however, they claim that restaurants using their service see an increase in business by 20% and a ROI up to six times in monthly takeout revenue. GrubHub carries the name recognition that a restaurant new to this platform might be seeking. It has even acquired some other big name services such as Foodler, Eat24, and Seamless.
How it works: Sign up on their app or website. Choose to accept orders through GrubHub’s mobile app, website, or your website. Customers place an order online, GrubHub will send you the order to make, and a GrubHub driver assigned to the area will deliver it to the customer.
As the name suggests, UberEats is part of Uber whose drivers pick up the food and make the deliveries. Accessible in over 300 major cities across the U.S., UberEats recently announced plans to serve new cities, effectively reaching 70% of the country. The company claims that their most successful restaurant partners experience an uptick in revenue that averages $6,400 per month, or $75,000 per year, though that figure is dependent upon many variables.
How it works: Sign up on the UberEats app. Customers place an order and can track the order’s progress through the app. Your restaurant completes the order, and an UberEats delivery partner delivers it to the customer. They also help promote their restaurant partners’ menus via brand campaigns, emails, and social media posts.
There are other options for restaurant delivery services that are not available in all areas but may offer good deals for its partners. Research to see which delivery partners are most prominent in your region.