Cutting Out Third-Party Fees: How Pizzerias Can Take Control of Their Delivery Orders?

Cutting Third Party Fees
Friends enjoying a meal at a cozy restaurant.

In the evolving landscape of the food service industry, many restaurants are re-evaluating their reliance on third-party delivery services. While platforms like Uber Eats and Grubhub offer expanded reach, they often come with substantial fees that can erode profit margins. By taking control of their delivery operations, restaurants can enhance profitability, maintain brand integrity, and foster direct customer relationships.

Understanding the Impact of Third-Party Delivery Fees

Third-party delivery services typically charge commissions ranging from 15% to over 30% per order.

These fees can significantly impact a restaurant’s bottom line, especially when combined with other operational costs.

Strategies for Restaurants to Manage Delivery Orders Independently

  1. Develop an In-House Delivery System

    Establishing an internal delivery team allows restaurants to have full control over the customer experience and retain all profits from deliveries.

    ProsCons
    Complete control over delivery operationsRequires investment in hiring and training staff
    Direct customer interactionManagement of logistics and delivery routes
    Elimination of third-party feesPotential liability and insurance considerations
  2. Implement a Branded Online Ordering Platform

    Utilizing a dedicated online ordering system enables customers to place orders directly through the restaurant’s website or app, bypassing third-party platforms.

    ProsCons
    Strengthens brand identityInitial setup and maintenance costs
    Access to valuable customer dataRequires marketing to drive traffic to the platform
    Avoidance of third-party commissionsTechnical support may be necessary

    Our Recommendation: Consider UpMenu for a comprehensive online ordering solution tailored to restaurants.

  3. Partner with Local Delivery Services

    Collaborating with local courier services can offer a more cost-effective and personalized delivery option compared to national third-party platforms.

    ProsCons
    Potentially lower fees than major platformsLimited delivery range
    Supports local businessesVariability in service quality
    More personalized serviceMay require coordination with multiple providers
  4. Encourage Customer Pickup

    Promoting takeout orders can eliminate delivery fees entirely and provide opportunities for upselling when customers visit the restaurant.

    ProsCons
    No delivery logistics to manageRelies on customer willingness to travel
    Opportunity for in-person customer engagementLimited to local customer base
    Increased potential for additional salesMay not be feasible during inclement weather

By reducing dependence on third-party delivery services, restaurants can regain control over their operations, enhance profitability, and build stronger relationships with their customers. Implementing in-house delivery systems, branded online ordering platforms, and local partnerships are viable strategies to achieve these goals. While each approach has its considerations, the long-term benefits of autonomy and increased revenue make them worthy of exploration.

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