What is the most profitable delivery model?

It is not news to anyone that there are several restaurant apps. In Ireland, we have Just Eat, Deliveroo and many others. Of course, at first, these platforms allowed restaurants to have access to a market that until then was very cold: delivery.


However, over time, restaurant owners faced a significant challenge: the high cost of commissions charged by the apps. Then, there was a debate in the market about creating your own app and internalising the delivery work, which generated another problem: the high cost of creating an app and keeping the drivers.


This debate is still very heated in the market and, therefore, we wanted to present to you today the most profitable model of having delivery in your restaurant, which is just to outsource the process of taking the food to the customer's house.


Costs of internalizing 100% of the delivery

Bearing the entire delivery process from start to finish is not an easy task, in addition to being extremely expensive, and it is exactly these expenses that we are going to talk about now. Check out!


Logistic Software cost

Having your own delivery requires a lot of investment in technology and, contrary to what many think, the cost is not just to make the app. After all, the application can have problems and must always be available to receive orders, or it can end up causing a lot of problems.


Employee cost of maintaining couriers

Keeping an employee has its costs, and every entrepreneur knows that. Pay the salary, in addition to pension costs, sick leave, paying someone to replace him when he can't work, vacation and many other expenses. If you are an entrepreneur in Ireland, you must already know that having an employee here is not cheap.


Liabilities

In addition to the active costs of maintaining our own delivery, we also have several liabilities. Having insurance for the food that is transported, insurance for the driver, and insurance for the vehicle used in the delivery, all of this adds up to a large debt at the end of the month, which may not be possible to pay.


Product loss

One more expense to think about: the loss of food that can (and will) happen in some accidents or inconveniences with your drivers. Having 100% of the delivery internalised, you would pay for it, while in a courier driver platform, the platform could bear this cost, which is a great financial advantage for your business.


Equipment cost

Now to the equipment, the delivery bag, appropriate clothing for drivers, the vehicles that will be used in the delivery and even petrol. All these costs must be placed in your accounts to correctly estimate the costs of having the delivery 100% internalised.


Maintenance costs

Anyone who has a car or motorcycle knows: that maintenance is not cheap. Oil changes, repairs in eventual accidents and other various problems that appear with use can be a great inconvenience and can even make offering a delivery totally yours not worth it.


So what's the solution?

Offering delivery at your restaurant is a rule for anyone who wants to remain competitive in the market. However, food platforms are not the best option due to high commission rates. Therefore, the best option is to invest heavily in marketing your company and outsource the delivery process. In other words, hiring a platform that offers drivers, thus eliminating all employment, maintenance, possible product losses and all the other costs mentioned here.


How about getting to know Ondway? We have an agile and robust logistics system that helps you follow the entire process, with peace of mind and at rates well below the market! Delivery can be hard. We make it easier. Register today!


4 views0 comments