How can restaurants partner with food delivery service providers, and why should they do this?

Introduction

The Internet has brought a dramatic evolution to the food industry.

The rise of food delivery apps has led to the commencement of new “platform to consumer” services across the food industry.

Not just restaurants are enthusiastic about these platforms, but customers themselves appreciate the convenience they provide.

According to a survey, over 72% of American adults ordered food directly from their favorite restaurants. In addition, partnering with third-party platforms makes sense if your restaurant does not have a private app.

But the question is:

  • Can any restaurant partner with a food delivery app?
  • If yes, then how can restaurants partner with food delivery service providers?
  • What are the benefits of partnering with a food delivery app?

Well, it would be unfair to keep the audience in suspense that long. So without further ado, let’s help you find the answer:

Who are food delivery service providers?

Reports by Statista reveal that over 13% of the US restaurant market was taken up by online food delivery when COVID-19 was at its peak.

Ever since then, almost every third person in the US has a food delivery application installed on their smartphones.

During lockdown, people had to curb their appetite for tasty cuisines, which led them to switch to a food delivery service provider, as it enabled them to eat their food at home.

Eventually, people loved these services!

Post-pandemic, these tempting services have become irresistible. Resulting in restaurants looking to partner with delivery service companies to adapt to the changing demands of the industry.

But the question is, “Who are the food delivery service providers?”

Well, the short answer is: a company or firm in charge of delivering food orders to customers on behalf of a restaurant.

These service providers are also referred to as “aggregators,“3rd party suppliers,” or “middlemen.” But the service provided by each can vary. As such, some might be attracting customers on their own platform first to make income from both customers and businesses.

On the other hand, others have a well-defined business model to provide outstanding benefits to customers. Let’s try to understand it better through some good examples-

Examples of Food Delivery Service Providers

1. App2Food

It would be better to cite App2Food as an free online ordering system rather than a food delivery service provider. The platform aims to reduce restaurants’ reliance on third-party platforms, but has built its own eco system so that food delivery is done effectively and efficiently by the restaurant itself.

App2Food lets you create your own mobile application (for both iOS and Android devices), launch it, and receive orders on your own custom-built portfolio. When it comes to delivery, you have the option of either hiring new people to deliver orders or using App2Food’s delivery services.

2.DoorDash

One of the prominent platforms in the US food delivery sector is DoorDash. The delivery driver for DoorDash picks up meals from local restaurants and delivers them to the customer.

The platform receives orders through its own application, providing customers with the option to order food from their favorite restaurant. Customers place the order and wait for its arrival within the estimated delivery time.

3.Grubhub

GrubHub is a famous online food ordering company based in the US. Explore all restaurants listed on the GrubHub application and website. Hereafter, select your orders and ask the company to deliver them to the address you provided.

The platform follows a standard protocol for providing services for a particular fee. However, fee structures also vary. People order food via the official GrubHub website. Pickup, delivery, and transaction services are handled by the brand itself.

4.Uber Eats

Uber Eats is also a popular food delivery service provider in America. The platform delivers food via couriers using cars, scooters, bikes, or on foot.

The marketplace connects restaurant and customer through a well-defined delivery ecosystem. Beside itself, Uber even serves B2B segments of the industry and ensures its survival through a diverse business model.

How Can Restaurants Partner with Food Delivery Service Providers?

As you are well-versed with the concept of a food delivery service provider now, it’s time to look at the standard criteria for partnering with a reputed firm:

1. Choose a food delivery service provider that matches your business model.

So, you have finally made up your mind to partner with a food delivery service provider. Well, of course, you have taken a great initiative. But now is the time for a serious discussion.

You can’t make a random selection. Don’t set false expectations that every company you’ll choose will meet your objective or match the requirements of your restaurant.

Bear in mind that, better than you, nobody can care for your business, no matter how cautious they are about their services to restaurants. In the end, these aggregators aim to keep themselves profitable.

So make sure you don’t weave any dreams, but check the authenticity of the following service provider beforehand. You can start like this:

Check Reviews

Reviews say a lot about a brand’s image. You can use multiple sources to access these reviews, which give you a summary of what people think about a brand. Reviews make it apparent whether it is credible or not, whether it can aid in your business’s sustainable growth or not.

However, it is also dependent on who you ask. If you are a customer, without a doubt, app stores are the first destination you can reach to learn about the brand and its overall credibility.

But if you are a restaurant operator, you should try getting reviews from restaurant operators that are already using the platform’s services. Testimonials given on their website can be a good source.

Research Fees

The fees are the second thing you should thoroughly investigate before partnering with a food delivery service provider. How much does an aggregator charge for its services? Does it charge fees or commission from the restaurant operator? Is it charged by customers or by both parties?

You must learn these things beforehand. Normally, these third-party platforms set a particular fee rate for each of their restaurants. Commission and fees are deducted from the payment made by customers for orders from restaurants.

If a company is asking for a higher fee rate, it’s best if you look for another alternative. Higher fees can impact your food pricing, sales, and overall profitability of your business.

Be selective

In the end, you should be a bit mindful about the selection. Maybe the fees are good and the brand’s profile matches your expectations. But wait! Have you done mathematics? Have you tried to be a bit more logical in your decision?

Well, it’s time to make a final judgment. You should be cautious about the negative sides of partnering with a delivery service provider. These negative sides are as follows:

  • You might lose your brand’s appearance.
  • You may or may not be able to access the contact details of customers.
  • It is possible that you may lose loyal customers.
  • Profits can be less at times when more sales are coming.

Luckily, not all platforms are the same. App2Food is quite different. You can use the platform to create your portfolio and to integrate delivery facilities into your business.

2. Read the terms and conditions carefully.

Can any restaurant partner with a food delivery app? The simple answer to this question is yes.

But can any restaurant partner with any food delivery app? The answer is no.

Every platform has its own unique set of conditions; a basic protocol is followed by these delivery apps uniquely. Therefore, ineligible restaurants will rarely access any facilities from these platforms.

However, some third-party delivery apps, such as App2Food, have their doors open to almost every kitchen. Post-pandemic, the “delivery-only” business model is replacing the “dine-in” types of restaurants.

Similarly, even if you have a small kitchen unit, you can still deliver your food to customers in your city using delivery systems like App2Food.

3. Prepare your documents.

When it comes to the food business, the U.S. government is downright sensitive about the matter. Whether you run a restaurant, operate a small kitchen unit, or sell food items from home, you must certify your business’ credibility.

There are some essential documents you need to take into account before you head to a food delivery platform. Such as-

  • A business license is a must.
  • Food Service License
  • Liquor license (if you supply any)
  • Employer Identification Number
  • Permit for food handlers, and so on.

It’s worthwhile not to sell anything that’s illegal to sell. However, your business might not have been exposed earlier, but your business profile will become public on a large scale as you partner with a food delivery service.

4. Start Working

Once you are fully sorted out about your business setup, documents are ready, and most importantly, the platform you are intending to partner with is finalized; it’s time to roll the wheels.

Go ahead and create your profile. You will have to properly list your business on these platforms to make certain that your brand is visible to a larger audience and that orders are coming. Any communication gap is a barrier.

Therefore, as you are listing your restaurant, make sure you have the given points checked:

Set a Protocol

Every business has a protocol. Even the food delivery platform you’re aiming to join has a protocol that you must follow.

So make sure you don’t ignore it. Following the completion of the information, proceed to the establishment of a strict protocol. Also, these protocols must be mandated for everyone covered in your business ecosystem. Such as,

  • What will be your business’s working hours?
  • Are you accepting orders on holidays?
  • Does your restaurant use a point-of-sale system?
  • Do you accept cash, net banking, or wire transfers?

You must make every effort to make all requisite services available to customers. But in case you aren’t providing it, you must have it clearly mentioned. This will help a customer make a well-informed decision.

Choose your menu

The component that drives the success of a restaurant business is its menu. It must be appealing enough that customers couldn’t stop them from placing a second order.

But you don’t need to load it with creativity and flashy items. Too many components can mess up the whole menu and your business’ reputation too. Therefore, you must aim for a menu that’s simple and easy to read.

Normally, food delivery platforms have their own strategically built menu card; you only need to update some information yourself. Still, it is worthwhile to check that you are inserting only great points in the description.

Visuals must be clear and appealing to the eyes. Most notably, it must look real and not like advertisement material.

Keep Working

After you’ve double-checked all critical metrics, you can begin working with a food delivery service. But you will still have to be a bit cautious.

If you don’t want to be terminated from their platforms, make sure you meet the terms and conditions of the respective firm. Any food item that is illegal to sell must not be brought or delivered by the delivery drivers of these platforms.

Such actions not only cause problems for delivery companies, but they can also contribute to strict action against the performer who is responsible for such offensive or illegal acts.

As a restaurant operator, your aim must be to stay fair with your customers, vendors, partners, and regulatory bodies, of course.

Why Should Restaurants Partner with Food Delivery Service Providers?

No doubt, it’s quite easy to partner with a food delivery service provider. However, if you still need convincing or want to feel more confident about the decision, the following points may help:

Here are some of the reasons why a restaurant should collaborate with these third-party platforms:

#1: You Will Gain New Clients

One of the primary benefits you will access as soon as you partner with a restaurant food delivery service provider is exposure to more new customers.

The US is the only country after China where food delivery application consumption is on the rise. People are heavily relying on these apps to order their favorite cuisine from one of their favorite restaurants.

With over 70% of customers preferring to order food online, it becomes way easier for restaurants to reach new customers via applications and websites.

So it’s no longer about finding customers, but about being found.

#2 You’ll raise brand awareness.

In this age of digitalization, only those businesses are capable of fetching multi-figure revenues that are harnessing the power of digital tools.

These platforms, such as applications and websites, not only help to improve a restaurant’s work efficiency, but they also contribute significantly to brand awareness.

A single restaurant mobile app can help you in multiple ways by making people aware of your business. It is also a professional way to connect with more new customers and other businesses, especially if you run B2B businesses in addition to your own.

It would be even better if you maintained your presence on all food delivery platforms rather than just one. It will help your brand be recognized by a specific audience across multiple platforms, making it easier to stand out.

#3. You Will Gain a Boost in Profits

The continued growth of food delivery applications has been well known for boosting the profitability of businesses. However, brand awareness and a well-built customer base are the key drivers.

Brands are exposed to more customers through these platforms than ever before. But it contributes to a boost in profits when at minimal expense you get a smooth delivery facility.

However, profitability can drop significantly if delivery charges are higher than expected. Therefore, it is worthwhile to partner with a company whose delivery charges don’t impact your sales and revenue figures.

Most delivery platforms, instead of charging a specific fee on deliveries, charge a service fee on a monthly basis; hence, they can be a nice catch.

#4 You Will Have Easy Order Tracking Access

Delivery services are quite notorious for delays. Restaurants can’t master this specific business operation without tech integration, which takes lots of investment, technology, and mind work to have the whole job systematically done.

But the food delivery platform specializes in this specific function. These platforms are known for their well-built delivery ecosystem, with which they can promise fast and smooth delivery of food from door to door.

Thanks to the GPS tracking feature, with the support of restaurants, one can monitor the transits of their delivery drivers. Some platforms even have this feature enabled for customers to ensure they can track their order’s update and prepare their plates in the meantime.

#5: Increase Demand in Times of Crisis

It’s not hard to figure out how to make restaurant delivery a business partner. Simply reach out, share your business details, and you are ready to go. It will increase profits, revenue, and sales. Quite boring, right?

But what if we told you that your company will experience long-term growth regardless of the external environment?

By 2021, most restaurants had been crushed by debt and losses as a result of a global shutdown caused by COVID-19 outbreaks. It isn’t hidden that business activity across the food industry was halted.

But above all, the restaurant industry had suffered massively. However, some brands were still thriving, having signed business agreements with delivery partners.

By delivering food to the customer’s door while respecting social distancing norms, they were ensuring the smooth running of their businesses.

Even so, they were receiving more orders as the appetite for some tasty food was hard to curb. If you also shift to restaurant applications, that means you are preparing your business to face any crisis in the future.

#6. You Will Access Ease of Management

Order tracking is easy and straightforward with a GPS-enabled food delivery platform. But there’s an additional benefit served by these platforms.

Simply put, POS (point-of-sale) systems can be integrated with these platforms, most notably applications. Restaurant operators can effectively tackle challenges based on their ability to effectively cope with the issues that arise in their business.

Sales, profits, and revenue altogether are easy to manage with POS and application integration. However, not every food ordering platform may provide you with this significant feature due to their own terms and conditions.

But some special platforms like App2Food can provide this specific benefit as a bonus. The platform provides you with a full suite of custom features. Simultaneously, which encourages great management of your business on a personal level?

#7: Your business will scale

One of the most compelling reasons to consider partnering with a food delivery platform is “scalability.”

Your business can scale exponentially with tech integration and all the benefits and features brought to your work culture by a food delivery platform.

The majority of customers prefer ordering food online now. It shows an expanding horizon of food delivery platforms. But it is worthwhile to note that you aren’t too influenced by the food delivery concept.

It isn’t essential that all platforms are favorable and meant to serve your restaurant’s interests. Their fees, commissions, and other conditions can sometimes negatively impact your brand and business.

But if you have made the right choice, your business will be scalable because much of the burden or complexity of the task will be taken on by these platforms.

Conclusion

Now that you have figured out how to make restaurant delivery business partners, you are warmly welcomed on these platforms if you pass the standard criteria for joining and starting a business with them. But make sure you have made the preparations beforehand. Mentally, mathematically, and tech-wise, you must be prepared at your restaurant. Some even provide you with custom selections and the option of selecting between delivery aggregators or hiring your own delivery partners. So consider paying attention to these little things, and go ahead.

 

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