While the country is beginning to open up again businesses are not able to have 100% capacity yet. With third-party businesses like DoorDash and Uber Eats in place, it makes it easier than ever for customers to get their favorite meals in the safety of their own homes. UberEats has seen a 152% increase in their good deliveries since June of 2020 with their competitors following behind with incredible growth. With so many consumers unable to enter restaurant locations, many business owners have chosen to join food delivery platforms. These apps have help restaurants stay afloat during a difficult time. However, as the country slowly opens up again many restaurant owners are left wondering if these apps are really what is best for their business.
From the customer’s perspective, restaurant delivery comes down to convenience. 51% of Americans feel more comfortable just ordering delivery until Covid is more contained rather than dine-in. That means if you are not serving your customers on these apps you could be losing out on a lot of business. Food delivery apps are in demand and are currently accounting for 76% of all food deliveries. It is clear that there is a large market to expand to, but will a partnership with one of these apps really benefit your business?
Meal delivery is growing in the digital market, but at what cost? Delivery platforms like GrubHub, DoorDash, and UberEats take between 15% to 30% commission from each order. Before the pandemic, GrubHub defended their cut of restaurant’s orders by saying their business isn’t an “avalanche of profit” as one might think. Their defense was that in order to be successful they need to be able to pay thousands of drivers all over the country to keep their business going. However, that kind of cut from restaurants’ profit margin has left many unable to join the app. Others don’t have a choice since they don’t have the tools to build their own delivery system themselves. Either way, the restaurant is taking a hit to their business in some way.
These apps have been very useful to a number of businesses during a difficult time. It does not necessarily mean it is the future of the restaurant industry. Before the pandemic, GrubHub actually lost profit. Going from $22.7 million in 2018 to only $1 million in 2019. While there was a boom in the market at the beginning of the pandemic, many customers have now decided to cut out online ordering apps to better support their local businesses. There are talks of many restaurants switching to a strictly “Ghost Restaurant” where they provide delivery services. This might be beneficial for some but it would still leave delivery apps cutting into their profit. So how do you provide delivery services without profits cutting into your bottom line?
If you are a restaurant owner wanting to expand into online deliveries but avoid third-party app services the answer is simple. Set up your own website and ordering service. With third-party apps, you can’t manage your brand or highlight your best features. When creating your own website and delivery service you get back the control. Now, not everyone is a computer expert, but that is where CobaltConnect comes in.
When you have a Clover terminal partnered with CobaltConnect you have the perfect business management system. We can help you launch a beautifully designed website that highlights all the best items on your menu. It’s time to cut out those third-party delivery apps and keep your online profits in your pocket. Reach out to a member of our team to start building your dream website. It is time you started working with the best restaurant pos system for your business.