You have a restaurant and you wonder how generate margins with delivery via business providers responsible for delivering your orders? Here are some video ideas that I had the opportunity to discuss for the site Coach My Restaurant !
In addition to the issues related to profitability, I distinguished two types of business provider:
- the Just Eat type marketplaces, whose job is to bring you customers, but which left you the task of delivering orders via your own fleet of delivery men, although now Just Eat offers the Stuart option to restaurants which do not have no delivery people;
- marketplaces such as UberEATS and Deliveroo, which not only bring customers but also take care of delivery, although these players are slowly starting to test the subcontracting of the delivery part to restaurants that are capable of doing so and have the resources of fleets.
Coach My Restaurant asked me how we could limit losses, or even generate gains, with solutions where the commission is fixed. This is a question that a plethora of independent restaurateurs must ask themselves, given that they do not have the infrastructure to achieve economies of scale by delivering with their own delivery fleets. It's not Domino's Pizza who wants it!
So I mentioned a few ideas that seem relevant to me, however, if you have other ideas, don't hesitate to bounce back in the comments or by poking me on social networks! Here is the video summary of what you need to remember:
And here is the full interview:
Finally, here is a written best-of of the tracks mentioned:
Build your menus taking into account “unknown costs”
This concerns, among other things, the VAT collected on the sales price set on the delivery application, and not the VAT collected on what the delivery intermediary pays you. This point has already been addressed here.
Practice up-selling
Up-selling consists of offering complementary products to the products selected by your customer on UberEATS or Deliveroo.
It is therefore a good way to increase your average basket.
If, however, this greatly benefits intermediaries, who thus amortize their delivery costs, it is also a way for you to add products with low merchandise or labor costs (drink, sauce, supplements, etc.) in order to “catch up.” » the loss on the main course.
Remove products with high cost of goods or labor
If a product requires a lot of process in terms of production or assembly, and/or is relatively expensive in terms of goods, it is better to set it aside for delivery, so as not to delay your service and cause losses . If this product is essential to your menu, then put it at the real price, and sell it as such through very sharp marketing!
Avoid recruitment solely dedicated to delivery
Unless you have such a volume that you have been able to save on the supplier side, and on your assembly and cooking processes, it is better to avoid hiring just because you are no longer able to keep up with the pace of orders.
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First be sure that the delivery part is profitable in order to hire, and after hiring. Otherwise, it is better to rotate your menu so as to have higher prices, which will lead to a reduction in activity, but for a better profit, without adding labor.
Find a way not to add labor linked solely to sending orders, unless you find a way to reduce another position.
Create a tailor-made card for delivery
In order to justify certain prices, it is better to create formulas specifically for delivery, rather than repeating your menu individually. This is an opportunity to “gamify” your card.
Renegotiate with your suppliers
Having delivery volume is precisely the opportunity to renegotiate with your packaging and raw materials supplier. So don’t hesitate to turn to them, showing them your performance and your delivery sales objectives!
Launch virtual brands
Virtual brands are a good way to amortize your fixed costs, but you will have to be very organized in order to be able to manage several brands!
Meet on the Coach Mon Resto website to develop your skills as a super-restaurateur. Also find all the videos on their Youtube channel, and don't forget to subscribe.
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