Which Restaurant Delivery Service is Best for my Brand?
When introducing food delivery into your restaurant there are different options you can choose from. You can either hire an in-house delivery team, use a third-party delivery service, or integrate delivery as a service (DaaS)! Each method has its advantages and disadvantages so it’s up to you to decide what works best for your restaurant!
In-House Food Delivery
One of the many benefits of building your in-house delivery team is that it will increase your brand loyalty and visibility! It eliminates the chance that customers may think of the food delivery service before your brand. There’s no need to compete for the spotlight when you host your delivery service. A study showed that 76% of consumers prefer to order directly from the restaurant of their choice, rather than through a third-party service.
With an in-house delivery team, you will also have full control over the dining experience you provide to your guests. The employees making the delivery will be hand-selected and trained by your crew members to ensure a successful experience. There will be no need to worry about who’s handling your precious delivery. On average, maintaining your delivery team is also 46%-50% cheaper than employing third-party services! Not only will the service itself help boost your revenue, but you’ll also be making 100% of the profits from each meal sold!
Using a third-party delivery service provides restaurants with more time to focus on food production and their in-house diners. Since the delivery drivers aren’t a part of your restaurant crew, you’ll be able to have the food delivered without the hassle of momentarily losing a much-needed employee. This method works for restaurants that may be short-staffed, or for owners who don’t want the responsibility of hiring and training their delivery team. Third-party delivery may seem like a good option, but it comes at a cost. On average, third-party delivery services will charge a 15-30% commission for their service.
Delivery as a Service (DaaS)
If you’re struggling with which delivery method to use, you may want to consider a mixture of both previous options and do delivery as a service! We are currently partnered with DoorDash Drive to provide DaaS (Delivery as a Service). The DaaS service offered by DoorDash provides an on-demand delivery fleet to restaurants at a flat rate with no hidden fees. This means you’ll be able to provide the same efficiency and speed as you would with a third-party service without paying a commission! This service also eliminates the need for restaurants to hire drivers and insure them.
With delivery through Incentivio and DoorDash Drive, guests will be able to order delivery directly through your native app. Many customers will appreciate being able to use their rewards and gift cards while gaining loyalty points and having access to delivery at the same time! This method provides convenience to your guests! Oftentimes their card information will already be saved on your native mobile app, and they may even have a previous order history that they can reorder with the click of a button. Orders placed with DaaS will save both your employee and your guests time! The integrated service allows you to control your guests' experience while collecting valuable customer data!
Restaurant Food Delivery Statistics
- 6 out of 10 adults are more likely to get their food delivered now compared to pre-covid (Source)
- Online food delivery revenue is projected to increase by 12.2% in 2022 (Source)
- 29% of consumers order food delivery regularly, at least a few times a month (Source)
- 53% of adults say purchasing food delivery or takeout is essential to the way they live (Source)
- More than 112 million Americans say they’ve used a food delivery service (Source)
- 33% of consumers say they would pay a higher fee for faster delivery (Source)
- Working with a third-party food service raises restaurant sales volume by 10-20% (Source)
- 43% of restaurant professionals believe that third-party apps interfere with a direct relationship with their customers (Source)
- 60% of restaurant operators say that offering delivery has generated incremental sales (Source)
4 Advantages of Restaurant Delivery Services
1) Reaches More Customers: Offering food delivery can help your restaurant reach new customers outside of the regulars, locals, and other customers from surrounding neighborhoods. DaaS can help amplify this reach as well since their service doubles as a marketing platform. The wide reach offered by delivery service will help put your restaurant in front of a wide range of demographics, including customers who may have never heard of you before. When a delivery service is offered, it opens up the opportunity for more than just the local customers to support your business with convenience. It’s important that you’re reaching as many potential customers as possible to continue growing your business!
2) Offers Convenience: Many customers won't always be able to make time in their busy schedule to dine in at your restaurant or be able to pick up their food. Having food delivery as an option gives these guests the freedom and convenience they need to still be able to enjoy their favorite meal! Considering the current state of the world post-pandemic, there are still people who would prefer not to physically visit a restaurant. Unless curbside pickup is offered, it can still be a safety concern for guests to pick up their takeout order. Delivery service grants guests’ the opportunity to use a safe and convenient method of ordering from your restaurant.
3) Makes up for Reduced Foot Traffic: At this point, we’ve all seen how fast the restaurant industry can change. During the global pandemic, restaurants were forced to shut down their in-house dining. This put a halt to foot traffic that would have normally been generated and could happen again at any time. Offering food delivery can help offset the income lost from in-house dining restrictions, while also reaching new customers who are more comfortable in their own homes at the same time! Even during times when there aren’t restrictions, food delivery is a great way to expand your business to more customers.
4) Increases Check Size: When ordering takeout or delivery, customers are given as much time and freedom as they need to be able to look through the entire menu and choose everything they want. The service is often offered through online ordering as well, which makes order customization more convenient. This means everyone can order exactly what they want and makes for happy customers! Restaurants have seen a 20% increase in check sizes from online and delivery orders versus dine-in orders. That means offering food delivery is a way to reach higher profits and ensure success!