Good to know! They’re all starting to trickle into my area right now. Uber eats a couple months ago and Grubhub just sent me an email couple days ago.I don’t use any of these services but my sales have skyrocketed since third party deliver became widespread in town. I guess they get more people used to getting delivery to home so the pie that we’re all fighting for a piece of has gotten bigger and bigger.
My opinion is if you’re going to use a 3rd party delivery service, you have to go all in with them, otherwise don’t use them at all. If you cut out your driver payroll and all the workers comp, payroll taxes, and insurance associated with delivering, and replace that with the percentage you pay these companies, you can surely come out ahead. If you have both 3rd party and in house delivery, you’re essentially paying double what you have to.I am in Richmond VA. Grubhub, eatstreet, are about %15 of my sales. They get the order and I deliver it in my 2.5 mile radius area. I am doing $4500 a week total, so they are bringing in about $500, and my sparrowspizza.com and my telephones are getting $4,000.
I opened 1 year ago. And I have been stuck at $4500 for 4 months. I turned off uberats and doordash 2 months ago. they toke %30. but they got the order and they came and picked it up and delivered it. I had wanted to cancel with them for a while, but was afraid of losing $500 a week in sales. Their drivers show up with curlers in their hair and wearing pajamas and flip flops, no hot bag. One even gave me a one star on google, not sure why. One night I got a $20 order on uberats and the driver said “oh cool, its just across the street” (uber does not let me know the destination). My intention was people would use Ubereats and door dash that were out of my delivery area. So I turned off those 2 tablets immediately. I’m not sending $6 to San Francisco for an across the street delivery when I have a professional driver sitting right there. And the next week sales stayed the same after dropping them. One thing I noticed I was using a lot less cheese after I dropped those two. I am pretty sure I was losing money with them.
I am going to turn off Grubhub and eatstreet one day soon. Just afraid to pull the trigger. I just hope when I do they all just switch to sparrows pizza.com. It will also be less confusion and mistakes in the store. All in store orders come through the thremal printer but the Grubhub we have to confirm on their tablet then go to the internet and print out on full size piece of paper, so were all reading different tickets.
Their average order is $20. and they take 15%, in other words $3 per order. so at $500 in sales thats $75 a week. Thats $4000 a year I could be spending on my own advertising, just like bodegahway said in a earlier post. Or I could raise delivery fee to $3(its only $1 now) I have free delivery on all my in house orders. I think I am the only one in Richmond that has free delivery. I think of it more as an advertising cost then operational.
They might be a good way to start, get the word out about your business, free advertising, but if your a delco the end game is just get the orders yourself. And if you have a decent sit down pizza place you don’t want these 3rd party drivers coming in with “JUICY” stamped on their butt.
This would scare the crap out of me as someone with a long time business built around delivery. If I went all in with Uber Eats who has been in town for about a year, what happens when they decide to leave? There’s certainly not a long enough track record with any 3rd party delivery companies in my town to make me stake the future of my business on them. Legislation is constantly being pushed and debated to make it harder for Uber to do what they do. It wouldn’t surprise me at all if something happens to make them close up shop in any particular neighborhood. I can see considering this if you’re a sit down restaurant looking to add delivery but if delivery is your business, I’m not sure putting it 100% in someone else’s hands makes sense.My opinion is if you’re going to use a 3rd party delivery service, you have to go all in with them, otherwise don’t use them at all.
I’m with you 100% which is why I don’t think these 3rd party delivery companies are a good fit for us delcos that get the majority of our business from delivery.This would scare the crap out of me as someone with a long time business built around delivery. If I went all in with Uber Eats who has been in town for about a year, what happens when they decide to leave? There’s certainly not a long enough track record with any 3rd party delivery companies in my town to make me stake the future of my business on them. Legislation is constantly being pushed and debated to make it harder for Uber to do what they do. It wouldn’t surprise me at all if something happens to make them close up shop in any particular neighborhood. I can see considering this if you’re a sit down restaurant looking to add delivery but if delivery is your business, I’m not sure putting it 100% in someone else’s hands makes sense.
Doordash puts you on their website without telling you. Then sells your product at a markup and pockets the cash. Less value for your customers and less money for your drivers to make. I have spent the last 2 years chasing them away. The last salesman told me I would be out of business by now. Not the case. My customers are happier because I don’t over charge them, and my people are happy because they have more cash in their wallet.I received an email this morning from a new one, doordash.com I looked at their site and I’m already on it. How does this work? They send people to come to my store to pick up the food?
Why would you do that? Assuming an industry normal average ticket you are getting what? 10 orders a week? Not even two orders per night.My commission is 35%. Yes, I said 35%