Delivery apps have become an increasingly popular way for restaurants to reach new customers and drive sales. While these apps can offer many benefits, including increased visibility and a broader customer base, they also come with significant downsides that can negatively impact a restaurant’s bottom line and its ability to deliver the highest level of consumer experience.
In this blog post, we’ll explore why delivery apps are not always the best option for restaurants, and how they can be detrimental to both the restaurant’s bottom line and the customer experience.
High commission fees
One of the most significant drawbacks of using delivery apps is the high commission fees that they charge. These fees can range from 20% to 30% per order, which can eat into a restaurant’s profits and make it difficult to turn a profit.
While these fees may be worth it in some cases, such as when a restaurant is just starting out and needs the added visibility, they can quickly become unsustainable for larger restaurants that rely on a high volume of orders to make ends meet.
Reduced control over the customer experience
When a restaurant partners with a delivery app, it cedes a significant amount of control over the customer experience. This includes everything from the quality of the food to the timeliness of the delivery, and even the way that the food is presented to the customer.
If something goes wrong during the delivery process, such as a missing item or a late delivery, the restaurant may not even be aware of it until the customer reaches out to complain. This can result in a subpar experience for the customer and a loss of revenue for the restaurant.
When a restaurant partners with a delivery app, it risks diluting its brand and losing control over its image. This is because delivery apps typically present restaurants in a standardized format, with little room for customization or personalization.
For restaurants that have invested significant resources in developing a unique brand and identity, this can be a major downside. Not only does it make it harder for the restaurant to stand out from the competition, but it can also erode customer loyalty and make it harder to build a lasting relationship with customers.
Finally, using delivery apps can come with hidden costs that may not be immediately apparent. For example, restaurants may need to invest in additional packaging or equipment to ensure that their food arrives in good condition, or they may need to hire additional staff to manage the increased volume of orders.
Over time, these costs can add up and erode the restaurant’s profitability, making it harder to maintain the high standards of quality and service that customers expect.
In conclusion, while delivery apps can offer many benefits for restaurants, including increased visibility and a broader customer base, they also come with significant downsides that can negatively impact the restaurant’s bottom line and its ability to deliver the highest level of consumer experience. For restaurants that are serious about building a strong brand and delivering exceptional service, it’s important to carefully consider the pros and cons of using delivery apps and to make a decision that aligns with their long-term goals and values.