09/16/2020 | News release | Distributed by Public on 09/16/2020 17:17
Sep 16, 2020
If you are a restaurant owner, finding a native delivery app that offers a delivery service for restaurants while ensuring you keep more of your profits in-house, is guaranteed to be appealing.
Fast food now covers all types of food as more and more consumers have become used to being able to order from a mobile app. The restaurant business has adapted and many restaurants partnered with delivery apps such as Uber Eats, GrubHub and Seamless as a seemingly easy way to access the delivery market.
However, while these mobile apps are convenient for consumers, they also charge high commissions as well as a delivery fee, which can mean they are barely profitable or even not profitable at all for restaurants.
Making sure you have the best delivery systems in place can increase both revenue and profit margins allowing restaurants to meet customer expectations for on-demand food. Customers want food delivered to them wherever they are, with a rise being seen in delivery to public places as well as homes, and they expect the same quality they would get in a restaurant.
ShiftPixy's Native Delivery solution allows restaurants to use their own channels to generate orders for collection or delivery including their website and existing apps. It also allows them to utilize existing staff to make the deliveries.
Taking back customer acquisition and delivery fulfillment means restaurants don't have to lose the 30% that was being given to third-party delivery services which dramatically increases profit margins and reduces the need for surge pricing.
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Building an in-house food delivery system has a number of advantages over using a third-party food delivery app. You get to keep more of your profits in house, can maintain your loyal customer base, and you get to choose and train delivery drivers to ensure they are brand ambassadors who will leave a positive impression on customers and ensure a brand focused experience.
Building an in-house delivery system varies by restaurant and depends on restaurant Point of Sale (POS) systems already in place, website design, and existing staffing.
Ideally you want a system that is as user friendly as possible for both customers and staff and an ordering and delivery system that is as streamlined as possible.
You need a system to allocate drivers to deliveries and ensure drivers are trained to meet delivery times and deliver the food in perfect condition as bad reviews and negative brand image can have a huge impact on your business even if the fault was not your own.
However despite the benefits of taking delivery services in-house there can also be potential problems relating to staffing issues and the costs of insurance. ShiftPixy already has staffing issues covered by providing a platform that links shift workers with available shifts in their areas.
ShiftPixy's Native Delivery allows a restaurant owner to appoint shift or 'gig' restaurant workers as delivery drivers for their shift. ShiftPixy then provides full commercial drivers coverage and liability insurance as well as route mapping for $5 per order.
ShiftPixy can also link with your existing POS allowing you to take credit card payments and offer a subscription option or loyalty system as you normally would. This allows restaurants to regain control over the process and create their own food delivery system using their own staff but without a big investment requiring business loans.
While many people will still place orders over the phone to have food delivered, restaurants looking to secure their place in the market and set themselves up to be success stories should also offer online food ordering. Especially if they are looking to attract the millennial market.
There are companies such as Uber Eats, GrubHub and DoorDash that offer a delivery service for restaurants taking care of both customer acquisition and service delivery. There is a certain ease of use that appeals to both restaurants and customers, and customers are often given promo codes, but these popular food delivery apps charge high commissions and can have a massive impact on already tight profit margins.
Delivery software systems should streamline the order process and facilitate delivery flow. There are a number of apps for restaurants as well as a range of POS systems. ShiftPixy partners with a number of POS systems allowing for smooth integration into existing restaurant operations.
Food delivery and takeaway services are among the fastest-growing segments in the restaurant industry with increases being seen in both third-party delivery services and in-house delivery.
There has been a rise in the development of delivery systems for restaurants that help keep profits in house. As well as other trends such as a move towards eco-friendly packaging, ultra-light deliveries that are better suited to bike and scooter delivery in cities, and deliveries to public spaces.
In a changing market offering delivery options can be seen as vital for attracting customers and boosting restaurant sales, if you do not offer takeaway they may opt for a rival that delivers food. In particular, articles have noted that millennials spend over 40% of their annual food budgets in restaurants and that almost 75% would order delivery if this option was available.
This means that even without the current situation customer spending is moving towards food delivery be it grocery delivery or takeaway food, and not having a delivery service at restaurants can be a major disadvantage.
Offering a wide range of options and a delivery service at restaurants can be a key way to serve more customers without the need to expand and can also be a way to allow local restaurants to compete with national chains. Customers, particularly those in major cities have come to expect that all types of food can be delivered to their doors and in many ways, convenience and the best delivery deals are more of a pull than loyalty to your favorite restaurant.
If you are going to move from serving dine-in customers only to offering a delivery service there are a number of things you will need to consider.
Choose dishes that will hold up well during delivery. It's better to not offer a dish than not be able to provide a high-quality version of it as disappointed customers are unlikely to become repeat customers.
From the customer interface, through gps tracking, to the delivery driver handing over the food, you need to ensure you have the right systems in place, that they are as efficient and streamlined as possible and that they are easy to use.
Look at your website design and ensure that it translates well for mobile users. Many customers, especially younger customers will expect to be able to order from their mobile, some will even use a smart home system, so you need to ensure your website is mobile-friendly. And check your web hosting to make sure it's up to scratch.
Choose a POS that has an integrated online ordering platform and/or integrates with other platforms. Getting the right POS can mean you can easily take orders online. Ensuring a great customer experience can also help when converting customers from third party delivery channels.
Choosing the right software will also help minimize mistakes ensuring every order gets to the kitchen, gets packaged correctly and makes it to the correct address on time.
Putting a system in place to make sure orders are double checked is vital when offering a delivery service. Mistakes can be made, especially during busy periods. If this happens in your restaurant it is usually quick and simple to resolve without any loss in customer satisfaction. However, for delivery and curbside collection customers, it can be much more difficult to rectify any errors so double and even triple-checking orders is always worth the time.
Preparing food for delivery will require different supplies and you don't want to run out and not be able to fulfill an order.
There is a definite trend moving towards eco-friendly packaging and there are customers particularly in the millennial market segment that while they prioritize convenience over cost also expect eco-friendly packaging.
As well as what your packaging is made of you need to consider how you best to transport it to avoid any leaks or spills, keep it hot (or cold) and generally ensure it arrives as you send it.
It is also worth investing in branded packaging. This could be as simple as a sticker or a stamp but will remind people where they bought from, reinforcing brand recognition.
Whether you have your own in house delivery staff or you are using couriers or a third-party delivery service you want to make sure they know how to transport the food and will be a positive representative for your brand.
If you are employing your own delivery staff you can make sure you train them, and make sure you think about driver tips. But even just building a relationship and getting to know delivery drivers can have a big impact on the care they take and the impression they give.
Badly delivered food can not only cost a restaurant financially but can also have a big impact on reputation. Food drivers from well-known delivery services have even admitted to sneaking food and sipping on drinks they are delivering, and customers are likely to place as much responsibility on the restaurant as the delivery service.
ShiftPixy's Native Delivery allows operators to utilize existing team members to make deliveries without having to deal with the prohibitive costs of compliance and insurance. This essentially gives the best of both worlds. A trained and uniformed delivery driver without the investment that can come from hiring your own fleet.
Checkout more on establishing your very own delivery system! Request a demo while you're at it!