Should Your Restaurant Start Offering Food Delivery Services?

Posted on: January 18, 2016 by RMS Hospitality

In a previous post, we discussed the rise in delivery services in New York. As food delivery services such as Grub Hub, Door Dash, and OnDelivery continue to flourish, this option seems more feasible than ever before. As more and more people are demonstrating their interest in food delivery, this service is worth looking into. In order to protect your operations during the transition, a Restaurant Insurance Package can help mitigate risk. Here are some tips on developing a sound plan that reflects your business’ interests.

According to the National Restaurant Association’s 2015 Restaurant Industry Forecast, approximately 74 percent of Millennials said they would order delivery from a full-service restaurant if it was available. Given this information alone, your restaurant should be equipped to supply the convenience that your customers desire.

Weigh the Options

There are several options available to employ this service. You can use your own staff to manage and deliver orders or you save time and reduce liability by using a third-party delivery service. Third-party providers can set up your delivery website, provide an ordering portal and even deliver your food for you, says Restaurant Hospitality.

Companies such as GrubHub and EatStreet require you to make the deliveries, but the orders are brought to you effortlessly. Simply inquire about compatible services with your existing POS system. Or, an outside delivery service can be used. These companies profit from a percentage of each order and deliver the food for you.

Pros and Cons

Delivery services will open your restaurant up to a larger demographic and has the potential to increase revenue tenfold. However, less interaction with the customer may not be the best option for some restaurants. Perhaps consider doing a trial run and gauge its success before running the program full-time. Experts recommend only offering delivery for certain dinner items that will stand up to the wait. Further, this should be done to test out the service and how it works in your kitchen first. Lastly, ensure that each meal that goes out for delivery reflects your quality and service guidelines.

At RMS Hospitality Group, we provide insurance for restaurants of all kinds. Our comprehensive packages are written specifically with you in mind to safeguard your business completely. To learn more about our products, contact us today at (888) 359-8390.

Posted in: blog Restaurant Insurance