December 17, 2024
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The post-pandemic world places it at the centre of all the business models, and restaurants are no exception. It is a core revenue channel for many. Thus, launching a food delivery service for restaurant is no longer an option. It is an inevitable part of a successful restaurant business in a big city (if organised smartly).
As managing delivery in‑house is costly and operationally complex, many restaurants consider partnering with a third-party logistics company. Here is why it is the right decision.
Running an in‑house delivery fleet comes with hidden burdens that quickly undermine profitability. Restaurants must recruit, train, and schedule drivers, and those obligations come with payroll taxes, benefits, and turnover costs. Insurance premiums for vehicles and drivers are another expensive aspect of the in-house delivery fleet, followed by fuel, maintenance, and depreciation expenses.
Managing routes, handling customer support, and resolving delivery issues are among the day-to-day operations that also require budget allocation. Often, spending a significant share of revenue on in-house delivery is not cost-effective and requires important effort that can be invested in the food quality, service, and overall restaurant development.
What is the alternative? A possible solution would be hiring a third-party delivery service with all those aspects mentioned above taken into account. Depending on the company selected for partnership, restaurants might also receive additional benefits.
Stuart, except for having one of the largest fleets and offering a consistent and fast delivery, boasts other features that boost revenue. It has top-of-the-range thermal bags to keep ordered meals warm, a commission-free model, route optimisation, electric vehicles, and excellent workload management during peak hours.
Outsourced delivery offers financial predictability that restaurants often struggle to achieve on their own. Transparent pricing models ensure operators know exactly what each order will cost, regardless of outside factors.
This consistency allows for easier monthly budget planning and gives a clear picture of delivery costs versus revenue.
Those restaurants that tried it claim that outsourcing delivery is not only more cost‑effective but also operationally smarter. It offers the following benefits:
Thus, organising an outsourcing delivery might take some time and effort, but the benefits are clear, and they have a positive impact on business.
According to Statista, the UK online food delivery market itself was worth £17.75 billion in 2023 and is forecast to reach £28 billion by 2028. Therefore, partnering with a third-party logistics company is a highly strategic move and beneficial for restaurants in many ways.
However, there are situations when it is the only right option. One example of such a situation is when a restaurant faces limited staff or high turnover. It is also the priority choice in busy urban areas with high delivery demand.
Summarising all the above, third-party restaurant delivery is a strategic move that ensures faster growth with less effort. Once organised smartly, it can be highly profitable, while also helping a restaurant to maintain a high quality of service, increase efficiency, and boost customer loyalty.
Beyond driver wages, you need to budget for vehicle insurance, fuel, maintenance, and depreciation. You also have costs related to recruitment, training, payroll taxes, and the administrative time required to manage routes and handle customer support issues.
Outsourcing provides a transparent, predictable cost-per-order. This financial consistency removes the variable expenses of an in-house fleet, allowing you to budget more accurately and get a clearer picture of your delivery costs versus revenue.
Yes, absolutely. You also gain operational benefits like faster delivery times from optimised routing, professional food handling that reduces damage, and real-time tracking for customers. These improvements can lead to fewer complaints and a better brand reputation.
It is a highly strategic move for most, especially in busy urban areas with high delivery demand or for restaurants facing staffing challenges. If managing deliveries distracts you from your core business of making great food, outsourcing is a very sensible option.
Definitely. A professional logistics partner ensures timely order fulfilment and provides features like real-time tracking and communication. This reliability and transparency directly contribute to a positive customer experience and can boost loyalty.
The post-pandemic world places it at the centre of all the business models, and restaurants are no exception. It is a core revenue channel for many. Thus, launching a food delivery service for restaurant is no longer an option. It is an inevitable part of a successful restaurant business in a big city (if organised smartly).
As managing delivery in‑house is costly and operationally complex, many restaurants consider partnering with a third-party logistics company. Here is why it is the right decision.
