Partnering with Delivery Apps for Your Restaurant: Understanding the Long-Term ROI with DoorDash, Uber Eats, and More

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Partnering with Delivery Apps for Your Restaurant: Understanding the Long-Term ROI with DoorDash, Uber Eats, and More

In recent years, food delivery apps like DoorDash and Uber Eats have become increasingly popular, providing consumers with a convenient way to enjoy restaurant-quality food from the comfort of their homes. While these delivery platforms may initially cut into restaurant profits, they can also offer long-term benefits and a solid return on investment (ROI). In this blog post, we’ll explore the pros and cons of using delivery apps for your restaurant and how this decision can impact your business in the long run.

The Changing Landscape of the Restaurant Industry

The restaurant industry has seen significant changes in recent years, with the rise of technology and a shift in consumer behavior. As more people opt for the convenience of online ordering and delivery, it has become essential for restaurants to adapt and leverage these platforms to remain competitive. The COVID-19 pandemic has further accelerated this trend, with many restaurants relying on delivery services to stay afloat during periods of lockdown and restricted dine-in capacity.

The Costs and Revenue Impact of Delivery Apps

There’s no denying that partnering with delivery apps like DoorDash and Uber Eats comes with its fair share of costs. These platforms typically charge commission fees ranging from 15% to 30% per order, which can significantly cut into a restaurant’s profits. Additionally, restaurants may need to invest in packaging materials and technology to streamline the delivery process.

On the other hand, delivery apps can provide valuable exposure for restaurants, especially those just starting. They offer an extensive customer base, often including people who may not have otherwise discovered your restaurant. This can lead to increased order volume and potentially higher overall revenue.

The Long-term Investment and ROI of Delivery Apps

When considering the costs and benefits of partnering with delivery apps, it’s crucial to take a long-term perspective. While there may be initial expenses, the potential ROI should not be overlooked. Here are some key factors to consider:

  1. Expanding your customer base: Delivery apps expose your restaurant to a wider audience, including those who may not be inclined to dine in or pick up food. This can lead to new customers and a broader market share.
  2. Increased sales during off-peak hours: Delivery apps can help boost sales during traditionally slow periods, such as weekdays or late-night hours, by offering your menu to customers who might not have visited your restaurant during those times.
  3. Lower fixed costs: While delivery apps charge a commission, the costs associated with running a delivery operation in-house can be much higher. By outsourcing delivery, you can save on expenses such as labor, insurance, and vehicle maintenance.
  4. Access to valuable data: Delivery platforms often provide valuable insights into customer preferences, order patterns, and more. This data can help you make informed decisions about menu offerings, pricing strategies, and marketing campaigns.
  5. Adaptability and resilience: Embracing delivery services can make your restaurant more adaptable to changes in the market and better prepared to weather challenging circumstances, such as the COVID-19 pandemic.

Making the Decision: To Use or Not to Use Delivery Apps

Ultimately, the decision to partner with delivery apps like DoorDash and Uber Eats depends on your restaurant’s unique needs and circumstances. Here are some questions to consider when making this decision:

  1. Can your restaurant’s profit margins withstand the commission fees charged by delivery platforms?
  2. Do you have the resources to invest in packaging materials, technology, and marketing to support your delivery operations?
  3. Is your restaurant located in an area with high demand for delivery services?
  4. Do you have the capacity to manage increased order volume without compromising the quality of your food or customer service?
  5. Can your menu items be easily packaged and transported without compromising taste and presentation?
  6. Are you willing to adapt your business model and operations to accommodate the delivery aspect of your restaurant?
  7. Can you leverage the data provided by delivery platforms to optimize your marketing strategies and menu offerings?
  8. Are you prepared to invest time and effort in building a strong online presence and reputation on these platforms?

While partnering with delivery apps like DoorDash and Uber Eats may initially cut costs and revenue for your restaurant, the long-term investment and potential ROI can make it a worthwhile consideration. By expanding your customer base, boosting sales during off-peak hours, lowering fixed costs, and gaining access to valuable data, your restaurant can become more adaptable and resilient in the face of industry changes.

When deciding whether or not to use delivery apps, carefully weigh the pros and cons and consider your restaurant’s unique needs and circumstances. By strategically embracing these platforms and optimizing your operations, you can position your restaurant for long-term success in the evolving landscape of the food industry.


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