5 Pros and Cons of Partnering with a Delivery Platform

Today it’s easier than ever for hospitality venues to reach their customers. Takeaway food, particularly online food delivery, has grown massively year-on-year in Australia, with 2021 set to be no different. In fact, the amount of Aussies ordering online for food delivery has jumped by a whopping 49% from 2017.

With the coronavirus pandemic showing how quickly things can change, should you be investing in food delivery services? This article explores the 5 pros and cons of partnering with a third party delivery service, to help you understand if it’s the best decision for your business.

Pros of delivery

Boost revenue during quiet periods and unpredictable lockdown

Offering takeout through a delivery partner gives you an extra revenue stream to fall back on when there’s less foot traffic, such as bad weather days or typically slow periods like Sunday nights. And, with ongoing covid restrictions and lockdowns, it’s best to be prepared. Partnering with a third-party delivery platform will future-proof your venue so you’re ready to serve your customers, even if you’re forced to close your doors for dine-in service.

Reach new customers

Partnering with an online food delivery service will mean more customers and more revenue. It opens up a whole new base of people previously restricted by location or because they didn’t know about your venue.

Entice new customers to come to your premises by putting a teaser of your offerings on special delivery-only menus, which you can populate with seasonal or premium ingredients to encourage customers to pay more. Tempting new customers with delicious sounding dishes and providing them with great food will go a long way in encouraging them to visit you in person, or at least order from you again.

Enhance your marketing

We know food delivery services earn a percentage of every order, so it’s in their interest to promote their hospitality partners and maintain strong relationships with business owners.

Delivery platforms also actively advertise venues on their apps and websites, helping you to reach even more customers without having to lift a finger. Plus, this extra exposure can also encourage people to check you out in person. This shows partnering with a delivery service platform can increase your reach without investing in physical expansion.

It also means you’ll be able to benefit from gaining access to things like expert advice on tailoring your home-delivery menus, and demographic data to improve your marketing or grow your delivery reach.

Cons of delivery

High commissions

Let’s address the elephant in the room. Food delivery services, such as Uber Eats, can charge up to (and sometimes more than) 30% commission which undoubtedly eats into profits. Margins are already tight for most hospitality businesses and every dollar really does count. However, the pros of partnering with a delivery service need some serious consideration as they can provide a wealth of new customers and revenue streams.

Lack of brand control

For many hospitality businesses, outsourcing delivery requirements can be nerve-wracking as it means you have less control over your brand and how customers experience it. Late deliveries and cold or spilt dishes can reflect badly on your business, even if you get them out of the door on time.

While it’s crucial to be aware of how customers may perceive your brand through using a third party, it’s also important to remember that you’re ultimately still in control of the customer journey. You can tweak your delivery menu to only offer dishes that will travel well and include special touches such as signature condiments to set you apart and keep your brand top of mind.

Future-proof your venue with online delivery

Partnering with food delivery platforms is a great way to open up an extra stream of revenue for your business, even during quiet periods. If you do choose to partner with a food delivery platform it’s important the integration causes as little disruption as possible to your current operations. Lightspeed Delivery, for example, lets you automatically sync delivery orders from Uber Eats, DoorDash and Deliveroo, straight to your POS and kitchen printer just like a dine-in order.

If you think delivery seems like too big a step for your business to take right now, you can always try partnering with an online ordering system, which lets your customers place orders via an app and collect them in person later on.

Whatever you decide, online delivery is a great way to future-proof your venue and you can access a previously untapped pool of customers and take your business to the next level.