Your favorite local restaurant owners may be dropping 3rd party delivery services due to profit loss, late payments, and high commissions. If you haven’t been living under a rock most of us have seen a 3rd party delivery service picking up food from a local restaurant.
Many of us have even used these services and are willing to pay the additional fee to get our favorite dish delivered. Having access to your favorite restaurant while sitting in your PJs may sound like a great idea but it may be killing the restaurant you love so dearly.
Here is the deal, most restaurant owners make small margins on food and depend on people ordering additional items when eating at their restaurant to keep their doors open. Easy to think restaurants are making a killing when you shell out a $17-$20 for delivery when the same order costs $10-$14 in restaurant but the restaurant owner will never see those additional dollars.
In most cases restaurant owners are losing an additional 25%-30% on top of people not grabbing all those much-needed appetizers, drinks, and dessert orders when you visit. Let’s not forget this also equates to no tips for their wait staff. Not a stellar business decision if you ask me.
Foghorn’s Owner Voices Opinion on Facebook
People will always have a reason for delivery and that’s not going away. If you’re a struggling restaurant owner I hope you consider the comments from your peers before getting locked into a contract you may regret. There are lots of other ways to drive foot traffic to your door (prepare for shameless plug) like hiring restaurant promoters like NWAfood.com to raise awareness of how great your food is.
We can even help you figure out why people aren’t coming and a plan to help change that (end of awesome promo). As for those of you reading this who use these 3rd party services.
If you have a choice between Netflix and chill or restaurant and chill, I suggest you get out of the house and experience your favorite restaurant. It’s better value for you, the food is fresh from the kitchen, and you’re supporting the places you love.
Quick disclaimer, it’s a fact that some restaurant owners see success with 3rd party service…but, the 3rd party success stories from owners I have personally spoken to already had heavy foot traffic before the programs and signed on because their kitchen can manage the additional output.
In my opinion, the 3rd party delivery services need to be more transparent with the customer of what the restaurants fees are. Restaurant owners would probably jump back on board if the 3rd party fees were passed to the customer, but this is highly unlikely since that would make the service super expensive.