Jodie James, Freelancer

Third-party delivery services have a few benefits, but they have lots of drawbacks as well. You don't need to manage deliveries or buy a vehicle when using one, which drives staffing and equipment costs down. On the other hand, you are at the mercy of whatever driver delivers the food for you and are subject to huge fees that can eat into your margins. This is why more small eateries are deciding to revert to delivering food themselves. If that is your plan, then you have to know what running your delivery service entails and what you need to prepare for. Here are some of the things small eateries need to consider before handling food delivery in-house.

Is it Really the Best Option for You?

You first need to look at whether handling deliveries on your own is truly the best idea for you. If you’re a new business, you need to understand that food delivery services do more than ship food for you. Try to think of a food delivery service as a huge food court where you can choose to have more or less visibility. If you're just starting your business, you have to know that foot traffic and dine-in orders are way down at the moment and building traction without the visibility a food delivery service can offer could be difficult.

This is why you should think twice about handling all deliveries on your own. You should also know that you can use both a third-party delivery service and have an in-house driver. Some services will also allow you to have your store to be featured there, but use your driver to send the food, so look at all your options.

Extra Expenses

You will also need to look at the additional expenses that come with handling deliveries in-house. You’ll have to get a decent vehicle or a fleet of them, hire one or multiple drivers, and look at things like business car insurance as well. You also have to look at things like maintenance and fuel costs and how they affect your bottom line. You might realize that the difference in cost between handling deliveries or paying delivery fees is minimal and that going with a third party might be a better strategic decision even if your margins are slightly narrower.

Taking Care of Dine-In Guests

One of the biggest mistakes people make when they start offering delivery is that they start neglecting their dine-in guests. If you're just starting to deliver, you have to know that you might experience trouble if you try to manage take-out and dine-in orders through the same channels.

You might realize that you're getting many more delivery orders than expected, for instance. Restaurants often feel like deliveries should be a priority because angry customers will be more likely to post negative reviews; however, dine-in clients might be the ones who pay most of your bills. This is why we suggest that you separate your kitchen space and have one part handling table orders and another one dealing with deliveries exclusively.

Setting Up a Web Portal

You also have to know that people are now used to ordering food online, so you will have to set up a website and probably have to develop an app for your service. You will also need to start looking at online and mobile POS solutions. 

Hire the Right Drivers

When you work with a third-party service, they pre-screen drivers for you. Finding a reliable driver on your own can be difficult and hiring the wrong one can have disastrous consequences. So, be ready for the challenges that come with hiring. The drivers you hire will make the biggest impact on the whole delivery experience, so recruit wisely. You need to hire people who will care about your brand and the customer. Hire drivers with experience and good references. You may have the best food in the world and really care about service, but if your drivers don't, your brand will suffer. So, be extra careful there and conduct thorough background and reference checks on all prospective drivers.

These are all things you have to think about when setting up an in-house delivery service. Take the time to evaluate all your options and only go through with your decision if you’re 100% sure that it’s the right choice from a business standpoint.