Third-party delivery services proliferated during the Covid pandemic keeping some restaurants above water when customers stopped eating out. 

Even today, third-party deliver services provide restaurants with a sales stream they might not achieve with just dining in customers or carry-out only.

But what the cost?

Sometimes it is hard to tell if you are really making money because of the substantial fees charged for third-party delivery. 

Can you reduce payroll costs using third-party deliver?

What is the value of third-party advertising of your restaurant on their app?

These questions can be hard to answer and are unique for every restaurant.

Cons to consider:  Third-party delivery services charge high service fees – sometimes as high as 30% of the overall bill.  You lose control of the guest experience.  For many restaurants, losing control of the guest experience is too much to sacrifice.

Your restaurant brand may suffer because of third-party issues such as late deliveries, poor communication, rude or problematic drivers, cold food, theft and other non-controllable problems.

The best candidates for outsource delivery would generally be;

• New restaurants
• Smaller restaurants
• Restaurants with no web presence or outdated technology
• Restaurants that can’t afford staff or resources for delivery
• Restaurants who are understaffed

Restaurants that should typically not use third-party delivery:

• Established or destination restaurants
• Higher-end restaurants
• Restaurants with well-recognized brand
• Restaurants with resources to make deliveries themselves.
• Restaurants that offer a unique customer experience.