Reclaim Your Delivery Profits: How Restaurants Can Thrive in the Third-Party Delivery World

We have all been there, a frustrated customer ranting online about their ice-cold fries, a missing side dish, or a delivery that never arrived. Third-party delivery services have become a double-edged sword for restaurant owners, offering access to a wider customer base while simultaneously creating a whole new set of challenges. Delivery now accounts for approximately 30% of restaurant sales, managing these platforms effectively is no longer optional – it is essential for survival. Here are five of the most common challenges restaurant owners and operators face when integrating third-party delivery services into their business model:

Inaccurate Pricing:

In the fast-paced world of online ordering, accuracy is everything. A single misplaced decimal point or an outdated menu item can lead to lost revenue, frustrated customers, and negative reviews. You already know how crucial it is to control your menu pricing, but with the complexities of third-party apps, discrepancies can easily slip through the cracks. Imagine you just increased the price of your signature burger to account for rising ingredient costs, but the old price is still showing up on DoorDash. Every order placed through the app is now cutting into your profit margins.

Wrong or Misleading Menu Item Pictures:

They say a picture is worth a thousand words, and when it comes to online ordering, that picture could be the difference between a customer clicking “add to cart” or moving on to your competitor. A mouthwatering photo of your juicy burger can entice hungry customers, but what happens when the image on Uber Eats shows a sad, small burger or worse yet a competitor’s product? Misleading or unappetizing photos can lead to disappointment and lost sales. You put a great deal of effort into crafting delicious dishes, and these items deserve to be presented with equally enticing visuals.

Technology Disconnection:

Technology can be wonderful, but sometimes the biggest hurdle to a smooth delivery operation is a frozen third-party ordering tablet or a lost Wi-Fi connection. While these might seem like minor issues, they can bring your order flow to a screeching halt. In stressful situations, staff may overlook basic troubleshooting steps like rebooting devices or reconnecting to Wi-Fi. Simple solutions often resolve the vast majority of issues, keeping your online ordering system running smoothly and preventing downtime. The tablet in your kitchen is your lifeline to a stream of orders. So, when a tablet goes dark due to a drained battery or a frustrated employee hitting the power button during a rush, it translates to missed orders and lost revenue.

Online Reputation Management:

In the digital age, online reviews are part of your restaurant’s virtual storefront. A string of negative comments can deter potential customers and damage your hard-earned reputation. With a staggering 78% of households ordering delivery at least once a month, those online reviews and comments carry more weight than ever. It is critical for restaurants to meticulously monitor reviews across the third-party delivery apps, as well as on their own website, and quickly respond to each message pertaining to your restaurant with professional and personalized responses. Addressing customer concerns, and potentially offering discount codes to be used on future orders to win back dissatisfied diners, can go a long way in protecting your brand and fostering customer loyalty online.

Incorrect Fees, Sales and Commissions:

Hidden fees, misallocated orders, and discrepancies between your point of sale (POS ) system and the third-party’s reports can all chip away at your profits. You need to meticulously compare your sales data with the reports from each delivery platform, ensuring every order is accounted for and correctly attributed. Additionally, customers do not understand the nuances of chargebacks, and sometimes request full refunds for minor issues. “My burger was cold!” can turn into a $50 refund request, eating into your profits – it is important that chargebacks are correctly handled by the third-party delivery service provider. Finally, it is critical to scrutinize commission fees, double-checking them against your contracts to uncover any overcharges. Discrepancies should be promptly addressed to recover any lost revenue and maintain financial integrity.

Ideas for Proactive Strategies:

To mitigate the risk of delivery-related reputational damage, prioritize proactive strategies that enhance the customer’s experience. For instance:

• Small gestures like offering complimentary drinks to third-party delivery drivers can foster goodwill and motivate better customer service.
• Elevate packaging by using tamper-evident seals or insulated bags for temperature-sensitive items, which reassures customers that their orders are handled with care.
• Utilize cameras in your kitchen and pickup area to help address concerns on items not delivered – the cameras can help you prove the food left your restaurant, which then puts the onus on the delivery service provider for the missing food.
• Partner wisely by choosing reputable delivery service providers that are known for reliability and good customer service.

You cannot control everything that happens once an order leaves your restaurant, but with the right strategies, ideas, resources, and tools, you can reduce risks and maintain control over your brand and customer experience, which still makes third-party delivery a profitable element of your business.

How Quatrro Helps Manage These Challenges for Restaurant Operators:

Managing third-party delivery services clearly comes with inherent challenges, which require dedicated staff to address. Hiring and training in-house staff who can conduct online menu audits, provide technical support, monitor tablets, respond to reviews, and manage disputes with each third-party delivery service is a costly endeavor and may require a number of individuals who collectively possess all of these skills. In addition, if you are growing and adding locations you may need to continually increase that team size to handle the additional workload.

Quatrro Business Support Services (Quatrro), a leading provider of accounting and technology services to the restaurant industry for more than 25 years, now offers a more cost-effective and efficient solution. By outsourcing your third-party delivery administrative management to our expert team, you gain access to a comprehensive suite of services covering all your needs, without the overhead of additional employees on your payroll. As pioneers in this specialized field, we developed proven strategies and innovative tools to easily navigate the complexities of third-party delivery. Our overwhelmingly positive client feedback speaks for itself – we provide solutions that work. Quatrro’s comprehensive suite of services eliminates the headaches of third-party delivery management, allowing you to focus on what you do best – creating delicious food and unforgettable dining experiences. Imagine the peace of mind that comes with knowing your third-party ordering system is constantly monitored, your reputation is protected, and your revenue is maximized.