How Delivery Apps Are Killing Restaurants

May 10, 2021

Girls eating delivery pizza as restaurant industry being killed by delivery apps

You’ve heard the expression—they made a killing. This has never been truer for third-party delivery apps. At one point, food delivery apps were somewhat of a necessity to survive in the restaurant world. But now, it’s become increasingly obvious that delivery apps are killing restaurants, and it’s definitely time for a change as more operators come to understand native delivery.

Weakens the Brand

It doesn’t matter if you’re a mom-and-pop cafe in a small community or a big company with multiple restaurant locations in big cities. Your brand matters. Drivers from a third-party delivery platform aren’t trained in your brand and don’t know your food’s nuances or how to sell it. 

Maybe they don’t even care. Your restaurant is just another dot on the screen and a way to make money. Chances of the customer having a repeat delivery driver are uncommon, and even if they did, the driver has no incentive to preserve the brand.

In the end, using outside food delivery services kills restaurant loyalty and weakens brand recognition. And you’re paying them to do it. 

Gives Away Data

You wouldn’t give away food, right? The same thing applies to your customers’ data. The restaurant owner needs all the information they can get about who’s digging their food, and using a food delivery service effectively makes that difficult.  

Virtual restaurants can’t even see their customers face-to-face, so knowing the details gives you the ability to paint by numbers. You can now “create” a face through your valuable data. The delivery apps know this and they use your customer information to compete for the same customer.

Giving away data also means you can’t promote directly to your customers, offer incentives, or build brand loyalty. Isn’t it time to stop losing valuable data?

Throws Away Revenue

Fees the apps charge can certainly add up. It’s not an exaggeration to say that food delivery app fees cut into 30% of restaurant sales profits. There’s the service fee, delivery fee, and regulation fee. Put them all together, and you might as well be cooking to break even. Your customers will notice as well. 

Before they check out, the meal price went up 30%, and that’s not including the suggested 15-25% tip. Sure, having something delivered in today’s world is commonplace despite these crazy fees, but wouldn’t you rather pocket your revenue than give it away?

Creates the Middleman

Nobody likes to be in the middle. Unless you’re a delivery food app or driver. Food delivery drivers work multiple jobs at once and prioritize dollars over customer service. The hot food handed off to a stranger now is in the queue along with the competition. The food may arrive in minutes or after a few other stops, you really don’t know.

Food delivery businesses make money by delivering as much food as possible, and this premise gives your business the same footing or place in line as everyone else. 

It also cuts off communication between you and the customer. Have you ever tried calling the food delivery businesses directly? If there’s a problem, how can you fix it? Maybe it’s time to say goodby to the middleman and hello to native delivery.

Say Hello to Native Delivery

Now that we know how delivery apps are killing restaurants let’s talk about something better for the restaurant— native delivery.

Native delivery moves from a complete third-party delivery business model to delivery staff trained by you. It’s a self-delivery concept that gives operators the power to complete deliveries using the ShiftPixy Driver Management System. 

You can now do what the delivery company does but better. Through the ShiftPixy system, restaurants can take online orders and choose on-site workers to complete deliveries. 

The restaurant business can create the routes, communicate with the customer, and deliver the brand-intended experience. All with lower fees so that you can take back delivery knowing that more money is in your pocket, not a third-party food delivery service. Think about what you can do with that 30%.

Native Delivery Is Better For the Restaurant

Native delivery puts delivery and revenue back in the hands of the restaurant. You now have control over the process from beginning to end. The local restaurant can now focus on the order received, and the in-house delivery staff intimately knows the food and can use this information when delivering the items. 

You can say goodbye to the separation between you and customers. If there’s a problem, solving it is easier and faster. It puts you back in the driver’s seat— one dish at a time.

Native Delivery Is Better For the Customer and Driver 

Customers want to enjoy the brand experience with their favorite restaurant. The delivery company can’t provide that experience or the same level of customer care as you would. Native delivery makes your customers more than a ping on a tablet or an avatar. Your drivers, trained in your brand, can provide better service with ease. 

Native delivery is also better for the delivery driver who may struggle to earn more than minimum age with a prominent third-party delivery app. The delivery driver works directly for you, not a third party. The driver becomes a familiar face and feels more connected to your restaurant. Native delivery is better for the restaurant, customer, and driver. 

Choose Native Delivery 

Delivery apps are killing independent restaurants and big guys alike. The fees are seriously cutting into profit and leaving the desired customer-to-restaurant connection cold. Why choose a third-party delivery service when there’s a better choice. 

Native delivery does it better with fewer fees and offers the intended brand experience. This way, you won’t have to worry about how the “Joe delivery guy” hands off your food. All you have to worry about is how you can control the delivery process from beginning to end. Plus, just think about how this helps your profit margins. 

Native delivery is the answer to how delivery apps are killing restaurants. Go ahead and give it a try.