As consumers increasingly gravitate towards platforms like Grubhub, DoorDash and Uber Eats for their delivery needs, many restaurants are making the switch as well, choosing to hand their delivery operations over to third-party vendors to meet the growing demand. However, there are several overlooked risks and challenges associated with outsourcing last-mile delivery. Here are five reasons why restaurants should opt for self-delivery, and how it can benefit their business.
1. End profit loss
There are a few undeniable advantages to using third-party delivery vendors. For example, they cut down liability costs for operators, provide instant access to a workforce that enables them to cater to the booming delivery demand and can help with added exposure for smaller restaurants with little to no marketing budget. According to Morgan Stanley, restaurants are reporting delivery as making up almost 40% of total sales. Operators should reconsider handing their profits over to delivery vendors. Some third-party platforms take up to 30% of each order, which, unsurprisingly, adds up quickly. As it turns out, it’s actually cheaper for restaurants to power their own delivery operations.
2. Stand out from the competition
Though some smaller independent restaurants might benefit from being listed next to a popular restaurant chain on a delivery app, most restaurants don’t want to draw attention to their competitors if they can help it. With new food options popping up on delivery apps on what seems like a daily basis, it can be especially difficult to stand out from the competition. By forgoing partnerships with third-party vendors and instead implementing self-delivery, restaurants don’t need to worry that their prospective patrons will be swayed by a more intriguing offer or a closer restaurant advertised on their delivery app.
3. Control valuable customer data
A huge risk for restaurants working with third-party delivery platforms is that those third-party providers also service the restaurant’s direct competitors. Even more frightening, delivery platforms have been known to swap customer data amongst their contracted partners in order to provide targeted, relevant marketing. Restaurants today can benefit greatly by managing their delivery in-house so they can remain in control of their valuable customer data, which can be used to bolster their own marketing campaigns—not their competition’s.
4. Stop brand damage
When hot food orders are delivered cold or a driver is rude, it leaves a bad taste in the customer’s mouth (both literally and figuratively). When restaurants tap third-party contractors for their delivery needs, the drivers won’t arrive in a restaurant-branded car or uniform, and may not even have special, insulated packaging to keep the food warm. Despite a negative experience at the hands of a third-party delivery driver not being the restaurant’s fault, consumers tend to blame the brand itself, which can have a detrimental impact on the hard-earned reputation that the restaurant has taken years—maybe even decades—to build up. With so much competition in the industry, a consumer’s connection with a brand could be the difference between a restaurant thriving or sinking. Therefore, restaurants need to make sure that just like the quality of their food, the delivery experience they offer is exceptional and the product brought to the customer is just as was when it left the restaurant.
5. Enhance customer experience
When a customer orders delivery, the driver might be the only human contact they have with the restaurant itself. In that regard, a driver should be trained like a true brand ambassador, providing the same customer service that the restaurant would provide in-house. However, when a restaurant outsources their delivery operations, they’re unable to ensure the driver is providing the same standard of customer service that they hold the rest of their staff up to. With online delivery projected to grow substantially in the next few years, top-notch delivery service is the key to success. Self-delivery gives restaurant operators full visibility into—and control of—every aspect of their delivery process to ensure customer satisfaction and drive repeat purchases.
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Self-delivery has far more advantages for restaurants looking to optimize their delivery operations and grow their business compared to third-party platforms. However, that’s not to say that self-delivery doesn’t come without challenges. Many operators might find it daunting to take on the additional administrative tasks associated with managing their own delivery workforce, especially when they already have their hands full with in-house staffing woes. The ideal solution is one that ties in the convenience and ease that third-party delivery platforms offer to operators, but also enables restaurateurs to still deliver the brand-intended experience to their customers. Enter ShiftPixy, an innovative workforce engagement platform that allows operators to utilize their current employees to make deliveries, but removes the challenges that come with employing delivery drivers directly. Serving as an employer to a restaurant’s workforce, ShiftPixy hires trained staff members away from the restaurant then leases them back to the operator. ShiftPixy provides a tech-driven management system that facilitates instant communication between drivers and customers while giving operators complete control and real-time feedback throughout the entire delivery process. Further, ShiftPixy manages auto coverage, workers’ compensation and other employment-related requirements, liberating the operator by freeing up their time to focus on what matters most: growing their business. With the help of ShiftPixy, restaurants are better suited to stay competitive in today’s increasingly on-demand society without surrendering visibility or control over their brand to the likes of third parties.