Does offering food delivery pay off?
With the whole restaurant industry getting on the online delivery bandwagon, you may be feeling the heat and wondering if it’s time to jump on yourself. But is food delivery worth the investment?
With the whole restaurant industry getting on the online delivery bandwagon, you may be feeling the heat and wondering if it’s time to jump on yourself. But is food delivery worth the investment? How much effort does it take? Rest assured: not only does delivery pay off, but it’s not all that hard to get into – primarily if you work with us!
The numbers don’t lie: delivery profits really…deliver!
The bulk of your overhead is already set if you have an existing restaurant. Your regular costs are around 25% for staffing, 25% for rent/bills/marketing, and about 25-30% for food, with total costs being about 75-80%. Depending on the restaurant, you then profit up to 20%. If you look at these costs, food is the only significant variable that changes with delivery. The rest is fixed overhead.
That means you’ll still have most of the basic costs if you opt out of delivery. If you add delivery, however, you’re bound to make more profit. For example, say that you have a restaurant offering online delivery in Europe: according to our findings, out of every €100 you make, you’re looking at €40 to €50 profit. Cha-ching! And that doesn’t mean you’ll expand your visibility and reach new customers.
It’s not a huge deal to set up (that’s where we come in)
All you have to do is pick one or multiple delivery platforms, sign up your restaurant, and that’s it! Don’t forget to take some good food pics for your menu – it’s essential for attracting customers. Are you afraid that getting started on a platform will cost too much time? Then, consider automating the whole operation with Deliverect.
We’ll ensure you can run multiple platforms and connect the big food ordering players like Uber Eats, Glovo, Takeaway.com, and many others to your restaurant’s POS. This takes away almost all of the operational back-end involved in delivery.
That’s because the biggest bottleneck (especially in fast-casual restaurants) is rarely in the kitchen but in the front of the house. If you have many customers coming in, keeping track of online orders is tough. By automating your online orders via Deliverect, you can leave your delivery business to run itself while you focus on taking care of your in-person clientele.
Measure, analyze, optimize… Or just let us do it.
By connecting all your delivery platforms to your POS via Deliverect, you’ll get detailed reports on your online sales to gain insight into what products sell better on what platforms and at which times. Our tool also helps you tweak and optimize your online menu. This is important because not everything in a physical restaurant also works online.
For example, you may need to exclude certain dishes from your regular menu because they aren’t delivery-friendly. Or you might want to experiment with new dishes online or offer delivery meals that generate more volume. If you sell different types of foods, you may want to consider splitting them into other brands: segmenting makes your offerings more findable and helps you target different demographics.
Once you’ve got your menu down, Deliverect can give you a view of your in-restaurant and online sales to have a complete overview of products you need to re-order. So, these metrics also help you optimize your stock management.
Automating your delivery business and online order flow will ensure your operations run smoothly. You can focus on what you do best: making great food and creating a unique customer experience. Oh yeah, and making money!
Ready to get started?
Get in touch with us to discuss the particular details of your organization and set up a free guided demo to see Deliverect in action.