Food delivery has already had a significant influence on the restaurant business. As a result, a whole new kind of restaurant has been born: ghost eateries.
Restaurants that simply provide meals are referred to as “ghost restaurants.” They don’t have physical locations where you can eat in or occasionally even pick up as traditional restaurants do. So, the emphasis is on food preparation and order fulfillment rather than an experience since they often operate from industrial kitchens.
The Pros of Using a Food Delivery for Small Business
Food delivery services have some appealing advantages.
Online ordering systems for restaurants raise the average check by 20% compared to dine-in orders. Restaurants have begun reopening in most states and provinces, but they face severe limitations on the number of diners they can accommodate at any one moment.
Less Physical Traffic Required
You’ll be able to reach a broader audience by providing delivery. Customers who are either staying in their homes or aren’t ready to leave can still be reached by restaurants that offer delivery. This helps to balance the revenue lost from closed or half-empty restaurants.
There Is Less Overhead
Your company may want to cut back on front-of-house staff if delivery or a “ghost kitchen” model becomes your main focus. This could save you money.
Get More Customers
It is particularly vital when restaurants are operating at a reduced capacity or when consumers are still hesitant to dine out, because delivery services may help you reach new customers. Moreover, in metropolitan areas, where clients may not have access to a vehicle, this is even more critical.
Since they also serve as marketing platforms, third-party applications may help expand this reach. If you want to attract new customers, you’ll be able to put your menu in front of those who aren’t within a reasonable distance.
The Cons of Using a Food Delivery for Small Business
What are the drawbacks of meal delivery services, and how can you avoid them?
You have less control over a customer’s experience with delivery. Due to unexpected traffic, road conditions, or a mistaken turn, your customers may have an unfavorable image of your restaurant.
Delays that have nothing to do with you or your cuisine might harm your business. Customers’ opinions of your business may be tainted if their meal is delivered cold or improperly prepared after a long journey. Because you aren’t present when customers eat your food, you have fewer opportunities to make things right if they have a bad experience.
It’s going to take time to implement
There is a lot of work involved in running a successful in-house delivery service, including recruiting and training new employees and establishing a process for efficient service.
Profit margins are lower
In order to use your own delivery fleet, you must pay for the drivers, their insurance, petrol, and so on. Profit margins are drained by these charges. Again, there are fees associated with utilizing third-party delivery providers. In order to make money with food delivery apps, you’ll need a large number of orders.
Even the top food delivery firms will take large percentages of each meal served. Mulberry & Vine, a healthy fast-casual eatery in New York, spends up to 40% of its earnings on delivery and couriers for each customer.
Prior to and particularly during the epidemic, third-party delivery apps were roundly condemned for charging exorbitant prices. Restaurant owners in certain locations are urging guests to order directly from them in an effort to retain more money in the restaurant’s coffers.
Extra Points of Contact
When dealing with a meal delivery service, there will be extra points of interaction between the order being produced and the food being delivered. As a result, you won’t be able to monitor the driver’s compliance with your restaurant’s requirements.
Customers want to feel secure when ordering from your restaurant, and any additional points of contact might make them feel less secure. Food safety is a primary issue right now.