3 Problems with Restaurant Delivery and How In-House Operations Can Solve Them

For your restaurant to thrive, a seamless and reliable delivery service is non-negotiable. However, the surge of delivery without proper consideration for how it fits into your operations has introduced significant challenges that can impact both profitability and operational efficiency for your restaurant.

As the demand for delivery grows, many restaurants have turned to third-party platforms to manage their delivery fulfillment. While these platforms are convenient, they also come with hidden costs and operational challenges that can hurt your bottom line. Let’s explore three of the biggest problems restaurants face with delivery services and why an in-house solution might be the answer you’ve been looking for (and that’s easier to implement than you think!).

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Problem 1: High Fees and Hidden Costs

The convenience of third-party delivery platforms comes at a steep price. These services charge substantial fees that can erode your profit margins and frustrate diners. Moreover, the additional costs to consumers – often listed as vague "service fees" – can lead to dissatisfaction and mistrust, ultimately damaging your restaurant’s reputation. Consumers are also getting more and more price sensitive, and aren’t willing to pay the premium for a mediocre experience.

To counteract these fees, you’ve probably resorted to offering discounts or lowering prices to increase order volume. However, these strategies only provide temporary relief and don’t address the root cause of the problem. By relying on third-party platforms, you relinquish control over pricing structures and customer interactions, which can lead to long-term financial instability.

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Problem 2: Food Quality and Waiting Times

Maintaining food quality during delivery is a constant challenge. Third-party platforms have started batching multiple orders into one trip, which leads to significant delays for consumers who don’t pay the premium (even more fees!) to be first in line. As a result, food sits for extended periods after preparation, losing its ideal temperature and freshness by the time it reaches the customer.

You may have invested in better packaging or attempted to time food preparation more precisely, but these are only partial solutions. The core issue remains: without direct control over the delivery process, it’s impossible to ensure that food arrives as fresh as it would if served in-house.

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Problem 3: Mishandling and Food Safety Concerns

Food safety is paramount, but third-party delivery drivers, who are often untrained and inconsistent, can pose significant risks. Restaurants can’t always ensure that these drivers follow proper food handling protocols, which can lead to compromised food safety and potential chargebacks.

To mitigate these risks, you may have considered implementing tamper-evident packaging or conducting random checks. However, these measures can only go so far. The variability in driver behavior and lack of accountability makes it difficult to guarantee food safety, ultimately leaving restaurants vulnerable to reputation damage.

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The Case for In-House, First-Party Delivery

Instead of relying on third-party platforms and temporary fixes, consider transitioning to an in-house, first-party delivery system. By taking control of the entire delivery process – from order intake to final handoff – restaurants can address these challenges directly and improve quality, efficiency, and profitability.

An in-house delivery system, backed by smart software, allows you to manage your own fleet of dedicated, well-trained drivers who adhere strictly to your standards and protocols. This not only ensures higher food quality and safety but also allows for more competitive pricing, fostering customer loyalty and repeat business.

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Leveraging Delivery Management Technology like Empower Delivery

Implementing an in-house delivery system doesn’t mean you have to sacrifice efficiency. Modern delivery management software, like Empower Delivery’s Dispatch + Driver Management system, is designed to streamline your operations, offering features like flexible order-to-driver assignments and real-time tracking. These technologies reduce delays, enhance accuracy, and provide a seamless experience for both the restaurant and the guest.

With Empower Delivery, your restaurant can optimize every aspect of delivery logistics. By focusing on restaurant self-delivery and managing delivery operations internally, you regain control over your delivery service, reduce dependency on third-party platforms, and ultimately run a more efficient and profitable restaurant.