Speaking at the last RSPA meeting in Nashville, TN, restaurateur and star of Bar Rescue John Taffer’s message was clear – Take action now! Thousands of programmers in Silicon Valley are trying to take your restaurant’s profits! These online delivery app programmers are redirecting online ordering and making a handsome profit at your expense. At the same time, this is an excellent solution for promoting your restaurant or delivering. If you do not have delivery drivers, it takes a large chunk out of the typical restaurant’s profits! However, they are also redirecting your in-house pickup orders.
In November, Domino’s Pizza announced they would help merchants offset these fees by purchasing gift cards from local restaurants.
DoorDash, Grub Hub, Uber Eats, and other third-party delivery services are also cashing in on the pandemic. With restaurants and retail shifting their focus to online ordering, delivery, and curbside pickup, they must embrace technology. However, at a whopping 15%-30% charge, this can really take a bite out of your profits, especially with pickup, catering, and order-ahead options. What can you do to protect your margins?
How restaurant owners are taking steps to reduce high delivery fees:
Use bag stuffers, magnets, or anything to direct customers to your online ordering page!
Add a simple flyer with a QR Code or promotion to entice repeat orders directly from you.
Give a discount if they order directly from your link and not through a delivery app.
Give away inexpensive magnets, calendars, or keepsakes to remind them to order from your restaurant.
Collect customer emails and market consistently to build business value in the long term.
To build your client list, offer server contests, free drinks, or desserts. This will not only help with marketing but also boost employee morale.
Send out specials and create loyalty to entice your customers to order online.
If you are not in front of your customers, make no mistake: your competition is
Add Options to your Online ordering Social Media Sites
Make sure you have your own online ordering page or button that directs your customers to order from you, not a third-party
Consider a gift card swap with other local restaurants and sell your gift cards online
Add online ordering buttons. or links on all of your social sites, even in your email signature correspondence
Automate your Processes
Use a Restaurant POS System to receive these online orders, saving time and labor.
Choose a POS that integrates all your coupons and gift cards. If you are using paper gift certificates, switch to plastic gift cards.
While technology is taking over and helping restaurants grow, make sure you are mindful of the process and cost of these systems. By implementing a few simple changes, you can increase profits and create a better overall guest experience. Call us at 239-549-5055 if you need help.
