Pros and cons of using third-party online delivery VS self-delivery

Pros and cons of using third-party online delivery VS self-delivery

Third-party online delivery services VS native online ordering and self-delivery for restaurants

Introduction

The restaurant industry has been significantly impacted by the COVID-19 pandemic, leading to an increase in demand for online ordering and delivery services. As a result, many restaurants are exploring third-party online delivery services, such as Uber Eats, GrubHub, and DoorDash, as an alternative to setting up their own online ordering and self-delivery systems. In this white paper, we will explore the pros and cons of using third-party online delivery services versus having your own online ordering and self-delivery for restaurants.

Pros of using third-party online delivery services

  1. Increased exposure: Third-party online delivery services can increase restaurants’ exposure to a broader audience. These services have a large customer base and can promote your restaurant to its users, leading to more orders.
  2. Reduced startup costs: Setting up an online ordering and self-delivery system can be expensive. Third-party online delivery services can eliminate the need for restaurants to invest in their own delivery infrastructure, including hiring drivers and purchasing vehicles.
  3. Convenience: Third-party online delivery services offer a convenient and hassle-free way for restaurants to provide delivery services. The platforms take care of everything from accepting orders to delivery, freeing restaurant staff to focus on other tasks.

Cons of using third-party online delivery services

  1. High fees: Third-party online delivery services charge high fees, typically ranging from 20% to 30% of the order total. These fees can eat into restaurant profits and make it challenging to maintain profitability.
  2. Loss of control: Third-party online delivery services fully control the customer experience, including the delivery process. This can lead to issues such as late deliveries, incorrect orders, and damaged food.
  3. Brand dilution: Third-party online delivery services may display menus and restaurant information differently, leading to brand dilution and customer confusion.
  4. Customer data ownership: Third-party online delivery services own the customer data and may not share it with restaurants. This can make it challenging for restaurants to build their own customer database and marketing strategies.

Pros of having your own online ordering and self-delivery system

  1. Control: Restaurants have full control over the customer experience, including the ordering process, delivery, and food quality.
  2. Lower fees: Restaurants can avoid the high fees charged by third-party online delivery services, which can significantly increase profitability.
  3. Brand consistency: Restaurants can maintain consistent branding across all platforms, including menus, logos, and customer communications.
  4. Customer data ownership: Restaurants own the customer data and can use it to build their own marketing strategies and loyalty programs.

Cons of having your own online ordering and self-delivery system

  1. High startup costs: Setting up an online ordering and self-delivery system can be expensive, including the cost of hiring drivers, purchasing vehicles, and developing software.
  2. Limited exposure: Restaurants may have limited exposure to new customers without the marketing power of third-party online delivery services.
  3. Delivery challenges: Restaurants may face challenges in managing their own delivery fleet, including hiring and training drivers, managing schedules, and maintaining vehicles.
  4. Risk: Restaurants bear the risk of managing their own delivery operations, and any problems or mistakes can have a negative impact on their reputation.

Conclusion

In conclusion, both third-party online delivery services and having your own online ordering and self-delivery system have their pros and cons. The decision of which option to choose depends on the specific needs and circumstances of the restaurant. Ultimately, restaurants should carefully weigh the pros and cons and choose the option that best fits their business model and goals.

If you are a restaurant owner and want to invest in your brand by having your own online ordering system for takeout, delivery, or catering, we can help!

Takeout Button® builds an affordable custom-branded online ordering system for independent or ethnic restaurants and local food businesses.

Find out how easy it is to set up your own online food ordering with us! Reach out today to learn more or to schedule a free consultation.

Leave a Reply