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Should your Restaurant offer delivery?

Websites such as Just Eat and Deliveroo are becoming more and more popular. This has led to more restaurants integrating with these websites and offering delivery options. There are many benefits and disadvantages to your restaurant offering takeaway and delivery. It is a big decision to make as a restaurant owner because if it doesn’t work out for your restaurant, it could lead to the sales and profit of your restaurant struggling. Here are a few of the benefits and disadvantages you will have to consider when making the decision of having a delivery service.

Should your Restaurant offer delivery?

Benefits

Increased Revenue

A delivery service will allow you to increase your revenue because you will be able to take more orders even if you have got a limited amount of space in your restaurant. This is because customers will not have to come into the restaurant to buy your products as they will be able to ring up and get it delivered to them. This will lead to the customers ordering from your restaurant because it will meet their customer needs and wants as they will not have to come to the restaurant which will lead to them becoming satisfied. This will lead to the customers becoming loyal and repeat purchasing because they know that you will be able to deliver to them which will lead to the sales and profit margin increasing. Having a delivery service will also increase your competitiveness as other restaurants may not offer a delivery service which will lead to the customers coming to your restaurant instead of your competitors.

Wider Audience

If you offer a delivery service and are integrated with delivery websites such as Just eat and Deliveroo, you will be able to cater for a wider audience. This is because people will see your restaurant advertised on the websites which will lead to them knowing about your restaurant and seeing the products that you offer. This will lead to more customers ordering from your restaurant which will lead to the sales increasing which will allow your profit margin to widen. Integrating with these delivery websites will allow your restaurant to come up as an option for the customers if they are situated within 10 miles of the restaurant. This will lead to the customers seeing your restaurant as an option which may lead to them ordering from your restaurant. This will lead to more people buying your restaurant’s food which will lead to the sales increasing which will also lead to the profit margin widening.

Satisfying the customer needs and wants

Many people do not want to go to restaurants and would rather the food be delivered to them instead of having to collect it. This is why you should offer delivery because it will allow you to cater for these customer needs and wants which will lead to them ordering from you. This will lead to them becoming satisfied and loyal because they know that they will get their food delivered to them which will lead to them repeat purchasing. This will mean that the overall sales of your restaurant will rise which will mean that the profit margin will widen. Integrating your restaurant with online delivery websites will make it very convenient for customers to order your food as all they will have to do is click what they want and then pay for it. This will lead to more customers ordering from your restaurant as they know they will be able to do it without any hassle. This will allow your restaurant’s sales to increase and will lead to your profit rising substantially.

Disadvantages

Delivery Costs

As you can see that there a lot of opportunities for your profit to increase with a delivery service. However, there are also a lot of costs that come with offering a delivery service. This is because you will have to pay for the hire of delivery vehicles so that you can deliver the food to customers which will cost a lot per month. You will also have to pay the petrol for the delivery vehicles which will also cost a substantial amount of money each week. You will also have to pay employees who are skilled to drive the vehicles. This shows that there are a lot of costs which will need to be paid if you want to offer a delivery service. This will lead to your restaurants costs increasing substantially which will mean that your profit margin will narrow. If you wanted to integrate with Just Eat, it would cost you £699 +VAT. This would have a massive impact on your profit margins as the costs of your restaurant will go up. If you wanted your own delivery website it would cost around £1000. You will also have to buy more supplies to deal with the extra orders. This shows that starting a delivery service is very expensive and will cost your business a lot of money.

Dealing with the Extra Demand

When you decide to offer a delivery service, you will have to make sure you will have to deal with the extra demand as well as the usual demand from the customers in your restaurant. This is because you will have to make sure that you will be able to make the orders from the delivery service as well as the orders from inside the restaurant. If you were unable to deal with making all of the orders then it would lead to the customers having to wait for a long period of time for their orders which would lead to them becoming angry. This will mean that the customers in the restaurant may walk out and go to another restaurant which will lead to your competitiveness decreasing leading to your sales and profit struggling. The customers who ordered online may get annoyed with waiting a long time which may lead to them cancelling their order which will mean that you will be losing sales leading to your profit margin dropping dramatically.

No control of Customer Service

When the product leaves the restaurant, you will have no control of it. This means that it could turn up cold or late which will lead to the customer’s needs and wants not being satisfied leading to them becoming angry as their food is cold and has not turn up on time. This will mean that the customers will not deliver from your restaurant again as they will think that their food will turn up cold or late. This will lead to you losing customers which will lead to your sales and profit struggling.

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