In-house or platform delivery service for your restaurant?

The delivery sector generated 7 billion euros in 2022. This figure is constantly rising, and should reach 9.2 billion by 2026. Since the health crisis, home delivery has become a way of life for the French. But, to ensure profitability and efficiency: should you opt for an in-house delivery service or via delivery platforms?For those who have not yet developed these services, launching a takeaway and delivery system may seem complicated: defining a suitable offer, calculating foodcost, packaging and delivery costs, optimizing order-taking, choosing the right distribution channels... But a service that is now becoming an additional source of revenue.

Once you're operationally prepared, how do you set up a delivery service? Create your own delivery service or use platforms like UberEats, Deliveroo, JustEat or Glovo for your restaurant. There are advantages and disadvantages to each approach, so which should you choose? Are delivery and click-and-collect the future of the restaurant business? Is it better to set up your own delivery service or use specialized platforms for your restaurant? What benefits can you expect?

1) Own delivery

Setting up your own delivery system has as many advantages as disadvantages. To ensure a fast, personalized and convenient dining experience, you need to take a step back and choose what best suits your establishment and your offering.

The advantages of in-house delivery :

• Independence. You decide when you want your products delivered. You're also free to launch promotions whenever you like!
• Adjust your prices whenever you like: if a dish or menu works but you haven't calculated a large enough margin beforehand, you can easily change its price.
• Control of the entire customer experience: from order taking to delivery and customer loyalty.
• Improving customer relations. By offering home-delivered meals, you give your customers the comfort of eating your food without having to go anywhere!
• Increase your profitability. Once the cost of implementing your services has been amortized, you'll be in a position to generate profits and improve your sales.
• Personalize your services to make it easy for your customers to stay loyal to you: free admission, complimentary candles, a note on a card bearing your establishment's identity, loyalty points, discounts, etc.
• Obtaining comments and opinions by subtly asking your customers to express their feelings after a delivery! This will help you improve your local referencing and move up the search engine results naturally.

The disadvantages of clean delivery:

• The cost of setting up your services: from hiring delivery drivers to purchasing a substantial fleet of vehicles (cars, scooters, bicycles...). The initial investment is quite expensive. At the same time, you'll need to deploy a marketing and communications strategy to reach your future customers!
• Logistical management is also a factor. When you're in the middle of a rush, you'll need to ensure delivery at the same time.
• Expertise: Are your drivers insured? Do you have a reliable payment system? Does it support contactless and dematerialized restaurant vouchers? Can you store meals in a room that complies with HACCP standards? Have you set up a platform to track your deliveries? Is your packaging adapted to your dishes?

2) Platform delivery

The rise of delivery platforms is increasing the visibility of the restaurants that join them. Nevertheless, the popularity of these applications puts all types of establishments listed on these third-party delivery services in direct competition with each other.

The advantages of handing over delivery to external platforms :

• No operational management. Don't worry about service and orders, just preparation!
• These applications handle customer acquisition.
• Improve your visibility among customers who have already been won over by delivery!
• Frequent offers. Customers love these little promotions that encourage them to order!
• Diversify your revenue streams. Rather than relying on a single platform, work with several locally-based partners.
• Automated order flow. Delivery services simplify ordering and record-keeping processes, saving time for front-of-house staff who don't have to waste energy answering the phone or checking the website!

Disadvantages:

• The difficulty of standing out in this hyper-competitive ecosystem.
• Delivery platforms charge a high commission on your prices. It varies from 20% to 30%.
• The precariousness of delivery drivers. Platforms are not very transparent about delivery drivers' working conditions: pay, payment cycle, cover, equipment available, shifts, etc.
• The independence of restaurateurs in jeopardy. The database of customers acquired over time belongs to the platforms: entrusting 100% of deliveries today is tantamount to entrusting 100% of your customer file!
• Customer loyalty. Increasingly, customers choose their delivery platform first, before choosing the restaurant.
• Loss of control over the customer experience. When customers receive an order that is late, cold, poorly presented or from a rude delivery person, they turn to the restaurant to complain.
• Service quality cannot be measured and then improved.

3) Which third-party platforms to choose?

• Uber Eats: the American giant

Uber Eats is the restaurant food delivery service from Uber. Launched in 2016, the platform is present in major French cities. Uber Eats provides the service of ordering a dish from a restaurant and having it delivered by an independent delivery driver. ADVANTAGES:

• Presence of a fleet of delivery drivers at UberEats
• Can be integrated with existing cash register software
• High visibility for partners
• Quick account setup for easy implementation
• 24-hour support service
• Extensive presence in many French cities
• Free registration fees
• Weekly payment of orders
• Uber One subscription

DISADVANTAGES :

• Commission between 25% and 30%.

Just Eat: the delivery pioneer

Just Eat, formerly known as Allo Resto in France, is a British ready-to-eat delivery company and one of the most historic players in the delivery sector.ADVANTAGES :

• Online ordering facility
• Ability to integrate with cash register software
• No membership or subscription fees
• No service fees are charged to the customer
• Affordable, low prices

DISADVANTAGES :

• Significant costs borne by the restaurant: 36% commission + 0.20E additional cost for each order, high registration fees.
• No delivery route tracking for users

Deliveroo: the highest quality selection of restaurants

Deliveroo, a ready-to-eat delivery platform of British origin, was founded in 2015. Orders are placed via the website or app with partner restaurants and delivered by independent couriers.BENEFITS :

• Deliveroo's own delivery fleet
• Can be integrated with existing cash register software
• High visibility for partners
• Quick account setup for easy implementation
• 24-hour support service
• Extensive presence in many French cities
• Highly intuitive interface
• Restaurant payments every 2 weeks
• Deliveroo Plus subscription

DISADVANTAGES :

• Significant costs borne by the restaurant: registration fee + 32% commission

4) Applications for setting up your own delivery service

• Dishop: one-click ordering

Dishop makes it possible to get your own sales application or website. The startup provides restaurateurs with a turnkey delivery and click-and-collect solution, all with no start-up costs.

• Stuart: the platform

Founded in 2015, Stuart is the European leader in on-demand delivery. This delivery platform is revolutionizing the way goods are transported around town. Operating in 6 countries and +100 cities, Stuart offers businesses of all sizes, in all sectors, faster and more convenient deliveries to offer their customers a unique experience.

In a nutshell,

Home delivery platforms for ready-made meals have, over the years, become a modern convenience. Whether in-house or via third-party platforms, there are both advantages and disadvantages. There's no one delivery company that brings in more revenue than another. You simply have to find the company that suits you best. Before making a decision, be sure to weigh up the pros and cons to determine which delivery service or platforms for your restaurant?