QSR food delivery: An operators’ guide to success in this channel
3 MINUTE READ
This article is the third in a series of five to promote Delaget’s 2021 QSR Operational Index – an annual report that shares stats and figures from over 6,000 QSR locations for sales, costs, employees, loss, and customer experience.
Delivery isn't exactly new to QSR operators and those who serve the industry, and yet we’re still seeing franchisees and franchisors alike navigating the nuances of the channel – and working to fine-tune their processes around managing it.
The 2021 QSR Operational Index found that half of QSR growth in 2021 came from the third-party delivery channel. And according to McKinsey & Company, food delivery’s global market worth reached $150 billion in 2021. That’s more than triple its global market worth just four years ago in 2017.
The pandemic made food delivery app use commonplace for many households, and consumers have made it clear that it’s not just a fad: Convenience is key in 2022 and beyond, and delivery apps are here to stay. If your operation is looking to succeed within the delivery channel, you’re going to want to keep reading to learn more about how to leverage the channel to gain the most success:
Onboard one third-party delivery provider at a time – and do your research.
If you’re an early adopter, it may be too late for this step, but if you tried to onboard all 5-6 of the popular apps at once, you’re likely nodding your head at this tip.
The key to success when beginning in the Food Delivery space is to take baby steps: Start by adding one delivery provider, and then add more after you’ve mastered the process for the first.
How to pick the third-party delivery provider that is right for your restaurant? There are multiple factors to consider, including:
- Location – Which apps are most popular in your neck of the woods? Does one stand out as a key player in your region? And probably the most important, which are available in your region?
- Niche – Some apps are more popular with chain restaurants, while others cater more to mom-and-pop shops. Some apps seem to be more popular for QSRs such as GrubHub, Uber Eats, and Doordash.
- Fees – As you’re probably aware, the delivery systems aren’t free. Compare commissions, service fees, and any added fees that you might incur with use and do the math!
Use a Delivery Reconciliation Software Solution
Modern operators, however savvy, do not understand the costs or margins – upfront or hidden - associated with this rapid growth channel.
Royalties, taxes, and financial statements are inaccurate as a result. Moreover, operators often do not have the tools to understand, manage, or improve the customer experience with this rapidly growing sales channel.
Additionally, managing 3rd party data is no easy feat. The 3rd party systems lack visibility and the arduous process of reconciling leaves ample room for human error.
Instead, CFOs are turning to robust software solutions to automate their 3rd party data reconciliation, freeing themselves of numerous hours of work each week and saving their organization thousands – a whopping average of $24,000 per location!
Delaget Delivery gives top operators the advantage of:
Accurate reportingA seamless data flow from Grubhub, Uber Eats, and Doordash to the Delivery dashboard eliminates the room for human error and catches instances of refunds, canceled orders, and missing items between the 3rd party app and the restaurants fulfilling the orders. This allows for peace of mind for the operators and the heads of finance, knowing their financial reports are correct and not inflated.
Saved timeWork smarter, not harder. Automated data flow is the future for operators, especially in the QSR space, where each restaurant relies on 12+ systems, each isolated from one another in a typical QSR environment. Finance leaders can expect to save hours each week and access their reports in a seamless, easy-to-use dashboard, rather than in a mess of excel reports (but if that’s your jam, you can also export to Excel – we support whatever format you prefer!)
With the thoughtful adoption and onboarding of 3rd party delivery systems, and a reliable approach to food delivery financial reporting to account for refunds, canceled transactions, and any further bank reconciliations, you’re set to succeed with 3rd party delivery – the fastest-growing channel in QSR.
Reach business goals with