If you’re like most people who love takeout, you’ve probably used a food delivery service once or twice.
GrubHub, DoorDash, and UberEats are just some of the most popular services that have changed the restaurant industry.
Each service makes ordering from your favorite local restaurant a breeze.
But with so many delivery platforms, how do you know which delivery service is best for restaurants?
In this article, you’ll get a full breakdown of the most popular delivery apps and what makes them stand out.
Contents
Why Delivery Is a Necessity for Restaurants
Restaurant delivery services have changed the way consumers order takeout.
Food delivery services have also been a boon to independent restaurants everywhere.
In most cases, they’ve increased revenue, touched a growing market, and cut labor costs.
Revenue Opportunity
There’s little more frustrating than craving your favorite restaurant’s food, only to find they don’t deliver.
Fortunately, restaurant owners have clued into that fact and changed their methods.
Now, by partnering with delivery services, restaurants can increase their revenue.
Delivery revenue has drastically increased since the start of 2020 when the COVID-19 pandemic kept most people inside.
Many restaurants and small businesses could stay afloat mainly due to food delivery services.
Considering that, many chose to maintain their delivery and curbside services once mandates were lifted.
Growing Market
Increased revenue is usually a given when you start offering delivery services.
But you might not realize just how much of an increase a business can see.
Food delivery is a rapidly-growing market that most restaurants would benefit from tapping into.
On the whole, food delivery has seen a jump since 2019.
However, the most significant increase has been with platform-to-consumer delivery services.
As a result, the market for food delivery services is expected to increase by approximately 9.7% each year.
A nearly 10% increase in market size is an excellent reason for restaurants to partner with delivery services.
Your product will reach more consumers, which can expand your base significantly.
Less Labor Cost
Another reason restaurants are turning to delivery services is to reduce labor costs.
Instead of paying staff an hourly rate, businesses pay delivery companies a small commission.
In exchange, they get access to an entire fleet of drivers.
When owners trim their labor budget, they can invest those funds in new products or services.
They also won’t have to pay auto insurance on delivery vehicles, further freeing up cash.
Are Delivery Services Worth It for Restaurants?
Third-party delivery services offer some excellent benefits for restaurants.
But, as with anything, these services have their downsides.
Here’s a quick look at some of the pros and cons of delivery services.
Pros of Delivery Services for Restaurants
- Decreased labor and insurance costs
- Increase revenue from delivery orders
- Reach new customers who prefer delivery
- Get a leg up on competitors who don’t deliver
- Provide contactless delivery
Cons of Delivery Services for Restaurants
- More exposure typically means higher commission fees
- Can hamper restaurant-customer relationships
- Need to integrate point-of-sale units for each service
- Potential need to expand kitchen staff
Conclusion: Are Delivery Services Worth It?
Although delivery services might have downsides, that doesn’t mean they’re not worthwhile.
In fact, delivery services are an easy way to increase revenue and draw in customers.
If you’re unsure about the benefits of delivery, look over the pros and cons.
Then, write out a list of costs and find areas in which delivery will save you money.
Which Delivery Service Is Best for Restaurants?
As a restaurant owner, you’ll need to choose the best delivery company for your business model.
All services essentially work the same.
First, you partner with a company.
Then customers order from your restaurant via the service’s food delivery app.
But with so many available services, choosing the right one can be overwhelming.
Here are a few of the more popular choices.
DoorDash
DoorDash is one of the most popular food delivery services.
It’s widely available, offers a broad selection of restaurants, and doesn’t charge owners exorbitant fees.
How It Works
Restaurants using DoorDash need to download the Order Manager app to receive orders.
Once you have the app, you’ll start receiving customer orders.
You can use your own tablet to download the manager app or rent one from DoorDash.
The Order Manager app also lets you adjust prices and offerings in real-time.
Restaurant Fees
DoorDash takes approximately 20% commission from each order.
Restaurants will also have service fees, which vary by user.
When you sign up for DoorDash, you’ll see a breakdown of prices for your specific needs.
Why It’s Good for Restaurants
DoorDash offers several benefits for restaurants.
Specifically, you should consider the following when looking at your delivery service options.
- Most popular delivery service app
- Available in more than 800 cities
- You may be able to use your existing POS
- Lower commission and fees than other services
- DoorDash is a household name
GrubHub
Founded in 2004, GrubHub was the first third-party delivery service to hit the market.
It’s flourished ever since, although it currently sits right behind DoorDash in popularity.
As of this writing, Grubhub serves roughly 3,200 cities in North America.
How It Works
When you sign on with Grubhub, you can integrate their system into your existing POS.
Customers will place orders through the Grubhub app or on your website.
As orders come in through the app, you can use your own delivery drivers or a Grubhub driver.
Restaurant Fees
Grubhub’s commission varies based on your needs.
Basic plans require a commission as low as 15%, while plans with bells and whistles could cost you 30%.
Why It’s Good for Restaurants
Grubhub has the major benefit of being the longest-running delivery service to date.
However, you’ll see a few other benefits when you choose Grubhub.
- Brand recognition
- Available in more than 3,000 cities
- POS and website integration
- Use your own drivers or Grubhub drivers
Uber Eats
Uber Eats is a delivery off-shoot of Uber, the popular rideshare service.
Although the service started with food delivery, you can also order retail or grocery delivery.
Like the other big names, Uber Eats is a commission-based service.
How It Works
When you sign up with Uber Eats, you’ll receive a tablet that allows you to manage orders.
As customers place orders, you’ll get a notification on the tablet.
If you’d rather not use an Uber Eats tablet, you can use the web version of the program.
There’s also an option to use your own wireless device.
Restaurant Fees
Uber Eats offers several plans that cater to specific budgets and needs.
Commissions range from 15-30%, and each plan has a small monthly fee.
Why It’s Good for Restaurants
- Uber Eats carries Uber’s positive reputation
- You can use your devices or your own
- Flexible pricing plans
- Widely available across the US
Tryylo
Tryylo is an up-and-coming food delivery app focused on Latin food and Latino-owned businesses.
The service allows customers to order Latin dishes using a ghost kitchen network.
Tryylo’s platform is an incredibly niche idea, so it’s yet to be seen how successful it’ll be.
Tryylo will only serve New York City initially, but the owners plan to expand into other Northeast states.
How It Works
Tryylo works with restaurants that have extra kitchen capacity and ghost kitchens.
Through these spaces, restaurants can offer a wider variety of options.
In addition, since restaurants with no dine-in option typically use ghost kitchens, Tryylo is the perfect option for business expansion.
Restaurant Fees
Since Tryylo is still developing, no fee information is available online.
However, you can keep an eye on the website for details as they’re released.
Why It’s Good for Restaurants
The concept behind Tryylo and its implications for delivery services are still unknown.
However, you can deduce a few benefits from Tryylo’s business model.
- Provides expansion to delivery services
- Doesn’t require a restaurant, just a kitchen
- Allows pop-ups and food trucks to deliver to consumers
ChowNow
ChowNow is a commission-free online ordering platform.
The service helps restaurants develop online ordering services for online and in-person orders.
Although it charges fees, ChowNow provides more flexibility than other services.
How It Works
When you sign on with ChowNow, you can choose delivery, dine-in, or pickup options.
Delivery options include Flex Delivery, which pairs you with a delivery team, or Self-Delivery.
Flex Delivery is a partnership with Uber and Postmates and is the only option that charges a fee.
ChowNow acts as a go-between for the restaurant and customer.
Although the company doesn’t provide delivery services, it’s a streamlined, low-cost way to expand your offerings.
Restaurant Fees
Fees will vary for ChowNow users.
You won’t get charged a commission on services.
However, there are fees involved in working with ChowNow.
Why It’s Good for Restaurants
- Doesn’t take a commission
- Lets restaurants use branded ordering systems
- Partners with Uber and Postmates
- Restaurant Success Manager helps you set and reach goals
Caviar
Caviar is a premier food delivery service.
Instead of including all restaurants in an area, it only accepts high-end establishments.
Since it limits its offerings, it has a smaller market share.
However, it offers a niche service you won’t see with other food delivery apps.
How It Works
Caviar is only available in 11 cities, making its footprint much smaller than its competitors.
Nevertheless, it stands out because it only provides food from pricey restaurants that don’t normally offer delivery.
If your restaurant already uses Square POS, you won’t have trouble integrating Caviar.
It’s a Square affiliate, which allows owners to start using the app without adding equipment.
Restaurant Fees
Caviar’s restaurant fees are higher than others at approximately 25%.
Service fees range from $2-$8 per order.
Although restaurants pay more commission, the average bill is significantly higher than standard restaurants.
Why It’s Good for Restaurants
Caviar might be small, but it offers valuable benefits to restaurant owners.
Here are a few perks you’ll get when you sign on with Caviar.
- Easy to use manager app
- Low commission costs
- Average customer spending is high
- Small but specific niche to reach customers
DIY Delivery Services
If you’ve gone through this list of services and none have caught your eye, there’s one more option to consider.
Instead of hiring a third-party meal delivery service, you can hire your own drivers.
How It Works
Hiring your own drivers is ideal if there aren’t many meal delivery services in your area.
You’ll simply add drivers to your regular staff and pay them accordingly.
Just be aware that hiring delivery drivers brings the added cost of insurance, gas, and hourly wages.
When you DIY your delivery service, you must also determine how customers will place orders.
Picking up the phone is always an option, of course. But you should consider the convenience customers get with third-party services.
An app or integration on your website will allow customers to send orders directly to your kitchen.
Why It’s Good for Restaurants
- DIY delivery services can be a lot of work, but they provide many benefits, too.
- Pay staff instead of a large company
- Control all aspects of your business
- Fill a niche when other services aren’t available
- Hire only people familiar with the area
- No need to manage multiple food delivery apps
How To Choose a Restaurant Delivery Service
Restaurant delivery services offer many benefits.
However, when it comes down to choosing the best food delivery service, you should focus on availability, popularity, and fees.
Availability
A crucial consideration when choosing your delivery service is availability.
UberEats, DoorDash, and Grubhub are widely available.
Other services, including Caviar and Tryylo, are pretty limited.
Large cities will see the largest selection of food delivery apps.
However, you might be more limited if you’re in a rural or suburban area.
Fortunately, if your app options are limited, you can opt for a service like ChowNow to create your own branded platform.
Popularity
As with availability, popularity is another critical factor in choosing a delivery service.
Most consumers are familiar with the big names: UberEats, DoorDash, and Grubhub.
So when you go with one of those, you can feel confident your business will get noticed.
But if you’re in a niche market, apps like Tryylo and Caviar can come in handy.
Fees
Many consumers choose their delivery apps based on delivery fees.
As a restaurant owner, you can do the same.
Most delivery services charge a commission and monthly fees.
Take a careful look at any fees you might incur and decide if they’re worth the cost.
You might find a food delivery service won’t be beneficial.
Or, you might realize creating your own service will be best.
What Is the Most Popular Restaurant Delivery App?
Statistically, the best food delivery app is DoorDash. It’s popular, widespread, and offers the fairest commissions and fees.
DoorDash
DoorDash partners with more than 300,000 restaurants across the globe.
Not only is it an excellent food delivery service, but it also does grocery delivery.
Other apps, including GrubHub and UberEats, provide grocery and retail delivery.
However, DoorDash’s selection is broader.
DoorDash also offers restaurant owners fair fees.
So instead of cost-prohibitive commissions, you’ll get prices that align with your needs.
Wrapping Up
Adding food delivery to your restaurant can do great things for business.
You’ll be able to reach a new market, decrease your labor costs, and increase your revenue.
But how do you choose which delivery service is best for restaurants?
Fortunately, there are plenty of delivery services, and this comprehensive guide will help you make the best choice for your business.
Have you tried a delivery service for your business?
Comment below with your experience or questions.
