Should you list your business on a delivery app?

With the rapid rise of online food delivery, apps like Uber Eats, Just Eat, and Deliveroo have transformed the UK restaurant industry. The ease of ordering food with a few taps on a smartphone has made delivery apps a convenient choice for consumers. For restaurants, these platforms offer immediate access to a broad customer base without the need to build an in-house delivery team. But while delivery apps bring clear advantages, they also come with a unique set of challenges that can impact a restaurant’s brand, profit margin, and customer relationships.

What can a delivery app offer your business?

One of the main advantages of partnering with a delivery app is it exposes your restaurant to a whole new customer base which you would not have had access to before. For smaller independent restaurants or those in quieter areas, this can open them up to an audience which would have been previously unobtainable. Alongside this, the convenience of delivery apps can lead to a substantial increase in order volume, especially during peak times when people prefer ordering in.

For restaurants without the resources and capital to establish their own delivery service, a delivery app partnership can massively reduce the costs involved and make it so that you can have a delivery service without having to carry out any upkeep on the service like maintaining vehicles and managing staff, allowing you to focus on the food.

Delivery apps also offer digital marketing perks built-in. To start with, just being listed on an app is great advertising that you aren’t paying for. Alongside this, the apps let restaurants pay for premium placements or featured spots, helping you stand out from the crowd.

What are the downsides?

One of the most significant drawbacks of delivery apps is the high commission fees. In the UK, platforms like Uber Eats and Just Eat typically charge restaurants between 15-35% of each order’s total value. For many small businesses, these fees can make it difficult to maintain a sustainable profit margin. With restaurants already operating on tight budgets, high commission rates can take a considerable bite out of their revenue. Some restaurants have even had to raise their prices on delivery apps to offset these fees, which can discourage customers from ordering.

Furthermore, using a delivery app puts another barrier between you and the customer and gives you much less control over customer interactions. If an order is late, wrong or if the driver is rude that can reflect negatively on the restaurant deposit it not having anything to do with you. To go alongside this, delivery apps do not help to create any brand loyalty to your restaurant from customers, lessening the effect of each interaction and potentially costing you in the long run.

Delivery apps also standardise the experience of ordering across various restaurants making it difficult to stand out. The apps can strip away any atmosphere or personal touch meaning it is again harder to garner loyalty. Moreover, lots of foods do not travel well which can affect how a customer perceives your food and brand. A meal that is fantastic in a restaurant may arrive at a customer’s house lukewarm or soggy. You also have less control over how the food is presented once it arrives.

An increase in delivery orders can also have adverse effects on your kitchen and kitchen staff. Especially during peak hours, kitchens can be overwhelmed by delivery orders as many kitchens are not designed to handle both delivery and dine-in. This can also have an adverse effect on the in-restaurant experience as diners are having to wait longer for their food and the restaurant could be packed with delivery drivers.

How to make delivery apps work for your business

Despite the cons, many restaurants have found ways to make delivery apps work to their advantage. Some businesses have been able to negotiate with the delivery app companies on fees and contracts. It is also possible to negotiate promotional partnerships and featured listings to make up for the high commission fees.

Not all dishes are suitable for travel, so you could consider creating a specific menu tailored to delivery. Select items that maintain quality during transit, and package food in a way that preserves freshness and presentation. This approach can help avoid customer complaints related to quality issues and ensure that the experience aligns more closely with in-house dining.

While you can’t control every aspect of the delivery process, you can take steps to manage the quality of your food before it leaves the restaurant. Invest in high-quality packaging and communicate with delivery drivers about best practices for handling food. If possible, check reviews frequently to identify and address recurring issues, ensuring they don’t tarnish your reputation.