Finding a great solution for restaurants, drivers, and customers may seem next to impossible.
There’s always some kind of trade off. In other words, you gain some, you lose some. Not anymore.
In this article we’re going to explore perhaps one of the greatest – and fairest – breakthrough in food delivery service where everyone does his own share in keeping the restaurant industry alive amid this new reality.
How Restaurants Can Get More Customers
Restaurants are among the worst hit by the global health crisis. According to Restaurants Canada, there had been 10,000 closures since the start of the pandemic with around 50% shutting down permanently if situation doesn’t improve in the next month or so.
In hindsight, the restaurant industry could have averted widespread shutdowns had they invested more time and resource into doing their own deliveries. Think Domino’s, Chipotle, Papa John’s and Wingstop.
They all reported double-digit same-store sales increases compared to last year, in stark contrast to the vast majority of local restaurants struggling due to lockdowns and dine-in restrictions.
The quickest route is, of course, to use third-party delivery apps. However, this ‘solution’ is more of a problem for small restaurant owners. Imagine paying 15-30% on every sale.
You’re making way less than the 10% margin restaurants owners usually get, plus you need to markup your menu items and pass it on to your food customers. It’s a double whammy to the restaurant industry.
But it doesn’t stop there. Most restaurants assume drivers get a decent cut from the commission fees.
They only get a flat rate for pickup, dropoff, and mileage plus tips which, again, they pass on to your food customers.
Oh, and they also take at least a 25% cut from the delivery fees (excluding tips). They take from you AND delivery drivers and your customers pay extra just to keep you in business.
Note: we’re not bashing on any third-party delivery apps. As a matter of fact, we believe these companies play a critical role in connecting restaurants, drivers, and food customers especially in this new reality.
Some restaurants and even cloud kitchens swear by them. However, we think there’s a fairer solution – something more sustainable and mutually beneficial for everyone in the community.
If there’s one thing we should be thankful of during this pandemic, it’s the heightened interest and appreciation of technology’s role in the world of business.
Nearly all kinds of businesses have turned to mobile apps. More and more users transact thru the app vs. phone call. Businesses that were slow to adapt are now scrambling to get online and on to people’s mobile devices.
The truth is third-party delivery apps have worked alright in the restaurant industry for quite some time – except for that they take the lion’s share of the profits.
Fix it and you have a killer app for restaurants, drivers, and food customers far better than any third-party delivery app in existence.
It all comes down to this: a fairer platform where everyone benefits from it. You pay less, your customers can pay less, and drivers get paid more.
The good news is you don’t have to look far. In the next section we’ll talk about DeliveryBizConnect and why we think it’s the only platform that offers a win-win-win solution for restaurants, drivers, and food customers.
Why DeliveryBizConnect’s Solution Is WAY Better
1. Restaurant Owners
Let’s talk about this hot topic of commission fees. Third-party delivery apps usually charge between 15-30% commission fees compared to just 3.33% delivery cost from DeliveryBizConnect. But since we’re not comparing apples to apples with just the commission fees, let’s put in some other factors.
Most third-party apps charge a one-time setup fee and gets a percentage of every sale you make through the app. With DeliveryBizConnect, you choose between Do-It-Yourself (DIY) where you do the setup all by yourself and Done-For-You (DFY) where we take care of everything. You pay system access of $99/month plus delivery fee of 1$ per order for a delivery cost of just 3.33%.
Suppose you had a gross sale of $3,000. In a 15-30% commission-based model, you pay from $450 to $900. Now let’s assume you came up with the same amount after having a hundred 30-dollar orders.
You only pay the system access fee of $99 plus $100 delivery fee. That’s less than half of the lower range in a commission-based structure. Note: that lower range usually means you’re using your own staff to do deliveries.
So why are commission fees so high? If you’ve been following along, then you know none of them actually goes to our driver friends.
They use it to fend off competitors and become the dominant brand in your community. Of course, there’s nothing wrong with being top-of-mind, but there’s a much better way of doing it. We’ll get back to this later in this article.
2. Delivery Drivers
One of the biggest advantages of using our system is it can actually help drivers earn good money.
After talking to a lot of delivery drivers, we learned it wasn’t the delivery fees that actually make a livable income but the tips from food customers. Remember, third-party apps will still have to take 25% from the delivery fees plus tax.
With DeliveryBizConnect, drivers get to keep the delivery fees set by you through the system. The money (including tips) goes directly to you which then goes to the driver through DeliveryBizConnect.
You can also set your delivery service to refuse or accept deliveries based on the minimum order required or charge customers ‘small order’ fee if the order is less than the minimum. This guarantees your driver gets a base pay of $4.99 per delivery.
Watch our video to learn how to set up your delivery fees using DeliveryBizConnect:
Another interesting feature you won’t find on other third-party delivery apps is it allows order stacking where you actually earn money on each delivery run by a single driver who picks more than one order. You still charge the $4.99 delivery fee from each customer on stacked orders but you only pay $2.49 on the second and third to the driver (drivers can actually pick more).
In other words, your driver gets $9.97 plus tips on stacked orders and you get $5 ($14.97 – $9.97) minus delivery fee of $3 (3.33% delivery cost) for an additional earning of $2. You’ve not just covered the delivery fee; you actually earn money on EACH stacked order!
3. Food Customers
Finally, we get to our customers. Now that we’ve taken delivery cost out of the way, your customers won’t have to pay extra on your marked-up menu items like what mostly happens when using other major third-party delivery apps.
With DeliveryBizConnect, you won’t have to. Besides, you’re already earning extra just by using our system.
You win, your delivery drivers win, and your customers win. So it’s not just a win-win, but a win-win-win! From here, it only gets better and better. Read on to learn how.
Bonus Tip – Our Secret to Rapid Restaurant Success
Still there? Great. We’d like to thank and congratulate you for your interest in learning how to earn more in this new reality while at the same time doing your part in saving millions of restaurants and delivery drivers.
It should be clear by now what DeliveryBizConnect is all about. We’re all about rapid growth and helping restaurant owners (or any business for that matter) get a leg up through the help of technology.
So how do we help restaurants stay top-of-mind without ever spending a dollar on ads? We do it by having each do their share in spreading the good news and earn a little extra in the process:
- Restaurant owners earn 15% more by sharing the DeliveryBizConnect app with their own personal branding plus 20% customer referral fee when users install the app using the referral code and order from any restaurants thru the app. Also, getting more delivery drivers into the system using the referral code earns them an additional $0.10 for every delivery, regardless of which restaurant they delivery for.
- Delivery drivers get more delivery driving opportunities as more restaurants and food customers use the app, thereby increasing their potential income.
- Food customers also get the 20% referral fee by simply sharing the app and have them use it for the first time to order food thru the app.
Watch our video to learn about DeliveryBizConnect’s win-win solution for restaurants, drivers, and food customers:
We’re Here to Help
If you need any help on how to jumpstart your own food delivery service, feel free to book an appointment with us for a 30-minute Complimentary Restaurant Sales Expert Call. We’re on a mission to help restaurant owners get back on their feet and increase sales like never before.