Are Restaurant Delivery Services Making Money or Draining Money from Restaurants?

Angela HudginsCredit Card Processing/ Merchant Services, Restaurant POSLeave a Comment

The pandemic brought about significant increases in demand for delivery services as restaurants were forced to shut down indoor dining. Surveys show that 60% of adults and 71% of millennials will want to continue having these options post COVID lockdowns.  However, delivery services cost money, and restaurants are giving up big margins paying the delivery companies to keep their doors open.  Neither the restaurants nor the delivery companies have been passing the bulk of these fees on to consumers. Increasing delivery prices to consumers may deter them from ordering and thus hurt restaurants. Delivery companies are struggling to make operations profitable while trying to keep fees as low as possible to restaurants. As a result, restaurants and delivery companies are at odds, struggling to balance profits and costs. Both are thinking hard about their options to drive the conveniences of diners while growing profitability.

According to the Albuquerque Journal“Companies like DoorDash and UberEats helped many restaurants stay in business during lockdowns, allowing diners to stay in and still order out. But that convenience came at a price: Delivery companies can charge commission fees of 30% or more per order, hurting restaurants’ already meager profits.

Some restaurants, fed up with the fees, have since started their own delivery or dropped off the platforms altogether. Delivery companies are trying to keep them in the fold with lower-priced services and relief funds. But they’re not making money either.” Read the whole article in the link above.

Restaurants can do their own delivery services and make their delivery services profitable.  One way is to limit their delivery services to consumers who live close to their restaurant, especially in dense neighborhood locations.  Another way is to save gas and time with GPS tracking and automated routing services.

Electronic Money Company can help restaurants keep those profits with our Restaurant POS.

  • Save thousands of dollars with our Built-in GPS Tracking and Automated Routing of deliveries. 
  • Save tons of hours and staff time answering phones and taking payments at the time of pick-up with our online ordering and payment collection.
  • Get our FREE website with Online Menu done for you.  Immediate orders go directly to the kitchen.

Check out our other secret sauces for growing sales and saving costs at https://electronicmoneycompany.com/restaurant-pos-system/ or give us a call today at 505-296-2847