It’s your money: A comprehensive guide to recovering delivery losses
4 MINUTE READ
We’ll just come out and say it: Restaurant operators are losing money to third-party delivery service providers.
And with delivery channel growth up 1,343% since 2019, delivery doesn’t seem to be going anywhere. If anything, it’s on the rise and has become woven into American’s daily lives. This poses an opportunity for operators to grow their overall sales and profits—If they can recover inevitable delivery losses and keep their staff from spending hundreds of hours monthly on said in-house recovery efforts.
In this guide, we'll cover everything from understanding delivery losses to manual recovery methods and the benefits of leveraging technology for automated recovery. Join us on this journey as we dive into the intricacies of the delivery channel and provide actionable insights for businesses like yours!
Delivery loss 101
What is delivery loss?
Delivery loss is when a delivery service provider does not pay a restaurant for some or all the items in an order. There are two common forms of delivery loss:
01. Canceled not paid: When an order is canceled by the customer, delivery service provider, or restaurant with a zero-dollar value
02. Error charges/adjustments: When a customer is missing items, receives incorrect items, or incorrect orders which are less than the value paid
Delivery loss due to a lack of visibility into DSP happenings, like unpaid cancels and error charges/adjustments, wreaks havoc on restaurant delivery operations for operators of every size, however, they’re not often addressed due to a lack of understanding around the problem itself!
Addressing delivery health through reconciliation and recovery is one of the greatest and most accessible opportunities for operators to increase their revenue and tighten up their operations
Frequently asked questions about delivery loss recovery
What are the repercussions of not reconciling properly?
If your accounting team fails to reconcile POS data with DSP data, you could be inaccurately reporting sales, and therefore overpaying on taxes and royalties. Additionally, you could be missing out on recoverable revenue and payouts from DSPs.
Why should I recover lost revenue?
If you aren’t recovering with DSPs, you’re leaving money on the table—Money that could be going back into your business, money that is yours! Whether you choose to do so manually, or by utilizing Delaget +Recovery, recovering delivery losses is the juice worth the squeeze.
What are the benefits of having visibility into DSP order details?
There are numerous benefits to having visibility into DSP order details in one easy-to-use dashboard. Here are some of the most impactful:
01. Accurately report sales, taxes, and royalties paid—maximizing the profitability of your third-party delivery channel
02. Ability to dig into which stores, days of the week, and/or dayparts may require more attention and coaching
03. Clear line of sight into delivery losses to ethically and accurately dispute with DSPs if doing so manually, and records on-hand for organizational insights if doing so with smart technology
Manual Recovery: A Step-by-Step Guide
For those opting to recover losses manually, Matt Giller, +Recovery Product Manager and delivery expert, outlines a four-step process:
01. Identify: Log in to each delivery service provider, run reports, and identify canceled, not paid orders and adjustment orders. (Duration: 5-10 minutes per order)
02. Dispute: Copy and paste relevant information into a web form to dispute the order with the delivery service provider. (Duration: 3-5 minutes per order)
03. Verify/Report: Check for confirmation emails regarding your dispute and verify the credited amount in your weekly report.
04. Repeat: Since this process is per order, be prepared to repeat it for multiple locations and orders, potentially taking up a significant amount of time.
We did the math: The average Delaget client has 30 disputes per location per month. With the estimated time breakdown to complete 30 disputes racking up to about 6-10 hours (per location per month), that can add up to 300-500 hours for a 50-unit operator. That’s a lot of time spent retrieving your hard-earned cash!
Automated Recovery: Leveraging Technology for Efficiency
We know the restaurant industry—and we know operators don’t have 300-500 hours per month to dispute orders, as their teams are busy enough as it is!
That’s why we created Delaget +Recovery: a tool that uses technology to recover delivery losses efficiently and effectively. With Recovery, you can sit back and focus on your day job while we do the dirty work and bring that revenue BACK into your business.
Plus, you’ll gain access to a dashboard that shows dispute details, outlining what’s been recovered and the “why” behind it all—Giving you visibility into what’s happening, recovery totals, and everything you need to stay informed on your delivery channel.
Opting for automated recovery through technology offers several benefits:
• Recovers more than manual*: Humans are humans—and with human processes come human errors! +Recovery technology is automated and recovers more dough than manual efforts.
• Visibility: Get all your delivery dispute data in ONE source-of-truth dashboard. Gain insights into recovery totals for different locations, allowing for trend analysis.
• Very little effort required: Enjoy the convenience of automated recovery without the need for extensive manual intervention.
Next Steps: Taking Action for Your Business
Now that you understand the options for recovering delivery losses, it's time to act. Consider the following steps:
01. Get your free +Recovery ROI: Knowledge is power. Assess the recovery potential in your business to make an informed decision on manual or automated recovery. Get your free +Recovery ROI assessment now.
02. Begin recovering $$$: Whether you choose manual recovery or leverage technology, taking action now is crucial for your business's financial health!
03. Already using a recovery tools or service? Get your free +Recovery ROI for maximum returns and peace of mind – it’s free and fast – schedule here now!
Whether you choose manual recovery or embrace technology, the key is to stay proactive and maximize your profits in the dynamic world of delivery tools and services.
May your business thrive in the ever-expanding realm of delivery!