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Written by Adam Miller
Are Third-Party Delivery Apps Helping or Hurting Your Restaurant

As restaurants, delis, and bakeries continue to recover from the impact of Covid-19 on their bottom line, many have relied heavily on third-party delivery services to fulfill orders to customers and help keep their businesses afloat. Although delivery apps have been a lifeline for some restaurants, using their services can come with some significant risks for business owners. In today's Aegis blog post, we look at some of the risks restaurants should consider when utilizing third-party delivery apps, and how they can mitigate some of these risks to improve their bottom line.

Impact on Food Quality and Safety

One of the most significant risks for restaurants that rely heavily on third-party delivery apps is that the food ordered does not arrive to customers as intended, with meals arriving at the wrong temperature or in disarray. When food deliveries are damaged or delivered at the wrong temperature, this can result in angry and frustrated customers who might not give the restaurant a second chance. Disappointed customers may also likely voice their concerns and complaints on social media or leave negative reviews, hurting restaurants even more.

Additionally, food that arrives at the wrong temperature can also create a liability risk for restaurants as it could lead to issues related to food safety such as food poisoning. Instead, restaurants should consider utilizing their own delivery drivers to ensure prompt and correct delivery of food exactly as ordered. This can help reduce possible liability risks and also protects the reputation of the restaurants with new and regular customers that expect a certain level of quality with their food ordered.

High Delivery Fees

Another common issue for restaurant owners using third-party delivery apps is that they can often charge high fees to businesses for their services, and these fees can basically eat up the profit restaurants might make on the sale. If businesses are able to utilize more of their own delivery drivers, they can save themselves the high fees and commissions that would ordinarily go to third-party delivery services. Also, customers can also benefit as they might pay less in delivery fees ordering directly through restaurants than with ordering through a third-party service.

Loss of Customer Data

An important factor to consider when using third-party delivery services is that restaurants may lose access to much of the vital customer data that can be acquired when they are placing online or mobile orders. Third-party delivery apps can easily gather the most valuable data restaurants need to directly connect with their customers, such as email addresses, mobile numbers, social media accounts, and other important information. However, third-party delivery services might not always share this valuable data with restaurant owners, making it harder for them to connect with new and existing customers. Restaurants can instead integrate a delivery services feature into their own existing website so customers can place orders directly through the site and also get the data needed to offer discounts and highlight new specials directly to their customer base.

Additional Industry Competition

Finally, restaurants that participate in third-part delivery apps also have to face the reality that the apps will highlight many other restaurants also competing for customer business. As people scan the app to find your restaurant or deli, they might be tempted to order from some other restaurant if they can't find yours soon enough, or if your restaurant has outdated information. When a restaurant or deli has a dedicated website that allows customers to place orders directly, then the customer is more likely to complete the order and skip the third-party app where there might be higher fees passed along to the customer.

Even with restaurants opened up fully in most areas of the country, many continue to see high numbers of delivery orders from customers that prefer to enjoy their meals at home. For restaurants that want to meet the customer demands for delivery options, they can opt to participate in third-party delivery services, or they can establish their own ordering and delivery services to reap more of the benefits and ensure that their customer delivery experience is always a positive one. Aegis Insurance & Financial Services is also committed to making sure restaurant clients have a positive business insurance experience by offering customized Restaurant Insurance solutions tailored to their unique industry needs. For more information or to receive a free quote, contact Aegis today at 713-850-7622 or complete our online form today!

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