Breaking Down Restaurant Deal/Delivery Sites

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Many restaurant operators flock towards Delivery Services, Daily-Deal Companies,“Marketing Partnerships” in order to help drive top-line sales. We’ve broken down a handful of the most frequented types of services that we continue to see on an increased basis.

Direct Delivery Services

  • Within Direct Delivery services, a customer orders from the service, the order gets placed to you, and finally, picked up and delivered to the customer – FOR A FEE TO YOU – the restaurant owner
  • Fees come in as low as 10% and as high as 40% depending on the service chosen
  • Orders could be as small as a single menu item
  • In using a service like this you can expect to receive payments as often as weekly yet as infrequently as the month’s end
  • In most cases, the company placing the order will take fees out of what is deposited to you

Delivery/Catering Services

  • This service typically satisfies larger orders or multiple meals based around business centers where large groups are meeting
  • There are always exceptions to the rule, but for the most part, they work very much like the Direct Delivery Services in terms of payments and fees
    • You’re simply seeing larger orders coming in

Marketing/Ordering Sites

  • These sites “partner” with restaurants in your area and promise to drive your sales up and increase your awareness in the market through their site
  • They do not offer Delivery Services of their own so you have to provide delivery
  • Since they are essentially “delivering” you a new customer you can expect to see a fee taken for said service

Discount/Couponing Sites

  • On these sites, a customer makes a purchase from the offering company that in turn pays you a small fraction of what was received
  • You then provide a discount on your products or offer freebies when the guest comes in
  • These often benefit the Offering Company and the purchaser, but a loyal consumer is not earned unless another offer is made at a future time
    • This potentially earns you instead,once-in coupon clippers

Alternate Payment Sites

  • This is a secondary batch that’s aside from your regular credit card processor
  • These companies have their own fees
  • Typically these are used for off-site types of transactions or online gift card merchants that intend to get you more sales

Online Gifting Sites

  • Customers buy a product or service for someone, which is then redeemed at your location
  • It’s important to note in these scenarios, that the “gifting” company will take any applicable fees out of the originally purchased sum and pay you the remaining amount at a later date

Considerations

  • What impact will this service have on your overall business plan or marketing objectives?
  • Will this company help drive your brand recognition to your target markets?
  • Do the fees align with your budgeted advertising expenses?
  • What effect will this influx in revenues have on your Top-line sales, Bottom Line Profits, and more importantly what will it do to your cash position?
  • Check out Restaurant Deal & Delivery Cash Flow that discusses the math behind these deals as well as cover any other considerations when weighing if one of these services is right for your restaurant.

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