In the fast-evolving restaurant industry, the delivery model you choose can significantly impact your business’s success. Should you partner with a food delivery app like DoorDash or Uber Eats, or invest in building your own in-house delivery system? Each option comes with its own merits and drawbacks, and we’re here to help you navigate through them.
With the meteoric rise of food deliveries—161 million users in the United States ordered food through online delivery services in 2023, leading to a 204% increase in market revenue over the past five years—restaurants face a golden opportunity to expand their reach. However, leveraging this booming market while keeping costs in check presents a clear challenge.
Ready to explore the pros and cons of current food delivery options? Keep reading to make an informed decision for your restaurant’s success!
Quality Standards for Modern Food Delivery Systems
With online orders booming and competition fierce, diners expect their food to arrive fresh, fast, and with clear communication every step of the way. The main delivery systems include:
- In-House Delivery: Restaurants manage the entire process with their own staff and vehicles, offering full control over quality and service.
- Third-Party Delivery: Restaurants partner with delivery platforms like DoorDash, Grubhub, or Uber Eats, leveraging their extensive network and logistics expertise.
Regardless of the delivery model you choose, certain quality standards are essential for providing the best business opportunities and ensuring customer satisfaction.
- Security: Ensuring the safety of both the food and customer data is paramount. Secure delivery systems implement practices such as secure payment gateways and robust data encryption safeguard customer information.
- Real-Time Tracking: Delivery systems with built-in integration provide real-time tracking, enhancing transparency and customer satisfaction. These tools make deliveries faster and reduce the risk of spoilage for perishable goods.
- Agility and Analytics: Modern delivery systems leverage analytics to optimize operations and elevate service. By tracking metrics like average delivery times, customer feedback on the delivery experience, and abandoned orders during checkout, restaurants can identify areas for improvement and make data-driven decisions.
By prioritizing food safety, clear communication, and data-driven optimization, restaurants can ensure their deliveries are not just convenient but a delightful extension of their in-house dining experience.
So, the big question is: which delivery system to choose?
Food Delivery Apps: How Does Third-Party Work?
- Order Placement:
- Customers place orders through the third-party app or website.
- The order details are forwarded to the restaurant via the app’s integrated system or an API.
- Order Management:
- The restaurant receives the order through the delivery platform and processes it in the kitchen.
- The app updates the customer on the order status.
- Delivery Assignment:
- The app assigns the delivery to one of its freelance drivers (often called Dashers, Couriers, or Riders).
- The driver picks up the order from the restaurant and delivers it to the customer.
- Real-Time Tracking:
- Customers can track their order in real-time through the app, from preparation to delivery.
- The app provides estimated delivery times and updates.
- Customer Interaction:
- Customers interact with the third-party app for ratings, feedback, and support.
- The app collects customer data and feedback.
Key Features in Assessing the Best Food Delivery App
Three of the most popular delivery apps are Grubhub, Uber Eats, and DoorDash. Each of them offers unique features and fee structures but shares the common goal of simplifying food delivery for both customers and restaurants.
| Delivery Service | Grubhub | Uber Eats | DoorDash |
| Online Ordering Functionality | Mobile app or website | Mobile app (iOS, Android) | Mobile app and website |
| Delivery Service | Grubhub manages a network of independent drivers through its platform. | Uber Eats uses a fleet of freelance drivers for delivery. | DoorDash uses freelance Dashers for delivery |
| Service Fee | ~2.9% per order | ~15% of the order subtotal | Flat 15% of total bill, min. charge of $33 |
| Delivery Fee | $0.99 to $12 based on location and promotions | $0 to $8, depending on restaurant and location | Varies, starting at $0; DashPass offers $0 fees |
| Customer Cost | Processing fee of $0.30 + 3.05% per order | Processing fee of $0.30 + 3.05% per order | Additional fees like small orders and regulatory |
As these percentages and fees can vary based on factors like order size, location, and promotions, it’s essential to consider the specific details of each restaurant’s operation and sales amount to determine the final costs.
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In-House Delivery System with Modern POS Integration
- Order Placement:
- Customers place orders through the restaurant’s website or mobile app.
- The order details are automatically synced with the restaurant’s POS system.
- Order Management:
- The POS system processes the order, updates the inventory, and sends the order details to the kitchen.
- The system prioritizes and tracks the preparation of the order.
- Delivery Assignment:
- The in-house delivery management software assigns the delivery to an available driver.
- Delivery routes are optimized using real-time data, reducing delivery times and improving efficiency.
- Real-Time Tracking:
- Customers receive real-time updates on the status of their orders, from preparation to delivery.
- Drivers can use the integrated app to navigate the best routes and update the status of the delivery.
- Customer Interaction:
- Upon delivery, the customer can rate the service and provide feedback directly through the restaurant’s app or website.
- The POS system records this feedback for quality control and future improvements.
Food Delivery Apps vs. In-House Integrated Delivery System
Food Delivery Apps
Pros
- Wide Reach: Access to a large customer base through popular apps like Grubhub, Uber Eats, and DoorDash.
- Marketing and Visibility: Increased visibility through app promotions, which can attract new customers.
- Low Initial Investment: No need for an initial investment in delivery infrastructure or staff.
- Customer Convenience: Customers are familiar with the platforms, making it easier for them to place orders.
Cons
- High Fees: Service and delivery fees can significantly cut into profit margins.
- Limited Control: Less control over the delivery process and customer service experience.
- Data Sharing: The third-party platform owns the customer data, limiting the restaurant’s direct engagement and targeted marketing campaigns.
- Dependency: Reliance on the third-party service for delivery logistics can be risky if the service experiences issues.
In-House Integrated Delivery Systems
Pros
- Full Control: Complete control over the delivery process, from order placement to delivery.
- Customer Data: Direct access to customer data, enabling personalized marketing and better customer relationship management.
- Brand Experience: Ability to maintain brand standards throughout the delivery process.
- Cost Management: Potentially lower long-term costs, as there are no third-party fees.
- Customization: Flexibility to customize delivery services and offers according to business needs.
Cons
- Initial Investment: Higher upfront costs for developing an in-house delivery system, including technology, vehicles, and staff.
- Operational Complexity: Increased complexity in managing delivery logistics and personnel.
- Scalability: Scaling the delivery operation may require significant additional resources and investment.
- Resource Allocation: Diverts resources and focus from core restaurant operations to delivery management.
Key Considerations to Choose the Best Delivery System
- Cost vs. Revenue: Analyze the cost structures of third-party apps versus in-house delivery to determine which model is more sustainable for your business.
- Customer Experience: Consider how each option impacts the customer experience, from order placement to delivery.
- Control and Flexibility: Determine the level of control and flexibility you need over the delivery process and customer interactions.
- Scalability: Assess the scalability of each option as your business grows and demand for delivery increases.
- Brand Integrity: Evaluate how each delivery method aligns with your brand values and standards.
By weighing these factors, you can make an informed decision about which delivery method aligns best with your business goals and customer expectations.
Discovering iPosEats Solution
In conclusion, both third-party delivery apps and in-house integrated delivery systems have their own set of advantages and challenges. The decision ultimately depends on factors such as your restaurant’s size, budget, operational capabilities, and long-term goals.
If you value control, direct customer relationships, and potential cost savings over time, an in-house integrated delivery system could be the ideal choice for your restaurant. On the other hand, if broad market reach and convenience are your priorities, then leveraging third-party delivery apps might be more suitable.
However, with iPosEats, you might have the best of both worlds. iPos offers a unique solution that includes:
- Seamless Order Management: iPos enables restaurants to have a website at no extra cost, automatically synced with the POS, creating a frictionless online ordering process. It streamlines the entire process from order placement to delivery.
- Direct Connection with Uber Drivers Without Third-Party Fees: iPosEats offers a unique feature by connecting restaurants directly with Uber Taxi Drivers, bypassing third-party delivery fees. This allows restaurants to benefit from a broad taxi network while avoiding third-party costs.
- Real-Time Tracking: iPosEats provides customers with real-time updates on their order status, enhancing their experience and satisfaction.
- Data Ownership: Restaurants retain full ownership of their delivery performance, customer preferences, and sales trends.
With iPosEats, you get the efficiency and control of in-house delivery with the reach and convenience of third-party services, all while maximizing profitability and customer satisfaction 
.
Ready to Explore More?
Interested in how iPosEats can transform your restaurant’s delivery operations? Contact our team today to discover how we can help you achieve efficiency, control, and customer delight through our integrated POS and delivery solution.
