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Restaurants should leverage third-party interactions to convert customers into direct orders, as customer’s value supporting local businesses and seeing their money stay in their community.
Fremont, CA: Third-party delivery services have both benefited and harmed restaurants, offering both opportunities and challenges during their recovery from COVID while also addressing labor costs, worker shortages, and inflation.
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Restaurants with limited options will be attracted to third-party delivery services since they make it easy for customers to browse multiple menus. This has increased sales and decreased labor costs, especially when resources are limited. Ghost kitchens, which can be delivery-only restaurants or multi-concept shared kitchens, are a thing. However, these services consume up to 25% of a restaurant's sales, forcing them to raise prices and lose their competitive edge. It costs restaurants about a fourth of their revenue to have a "partner" in their business, which results in a loss of income for the industry.
Third-party delivery services are causing restaurants to lose valuable customer relationships due to the vast amount of data collected from orders placed through their platforms, including demographic and psychographic data from other sources. This data aggregation and gatekeeping create an uneven playing field, turning relationships from cooperative to predatory. This trend is causing restaurants to adapt their menus and focus on understanding customer needs.
Restaurant owners can enhance their relationship with third-party vendors by prioritizing their needs and controlling their technology. They should evaluate their ability to launch pickup, dine-in, and delivery services and choose technology-based solutions for seamless guest service. These cost-effective solutions offer lasting value, converting customers to the restaurant's personalized platform if it's easy to use and streamlined.
Restaurants should leverage third-party interactions to convert customers into direct orders, as customers value supporting local businesses and seeing their money stay in their community. Incentives like fliers or discounts can encourage natural ordering. A strong customer contact system and constant communication with guests are crucial for long-term value and business growth, with customer data ownership being essential.
Third-party services often create false impressions about guests' concern for food costs, relying on investor cash incentives. In times of high inflation, restaurants should minimize costs and pass savings on to customers and team members for long-term business growth. Restaurants are adopting new strategies to manage operations, enhance first-party ordering capabilities, and use technology to protect interests, balance the marketplace, and reduce risk associated with third-party relationships.
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