Pros & Cons: Self-Delivery And Third-Party Delivery

#Elementary#Tools & Strategies#self-delivery#third-party delivery
2023-02-01
Maybe you have the urge to start a new business adventure in the F&B industry and have seen business opportunities in take-out service. What delivery methods should you choose?
We offer you some very useful tips when assessing which delivery model is more suitable for you. GrabFood, ShopeeFood, and foodpanda offer a third-party delivery service, so you can see the advantages and disadvantages of each option and what alternatives there are.

Advantages of the third-party delivery service

According to data from the datareportal, the percentage of the population that enjoys connection to the Internet in Malaysia is close to 90%. With this figure, it is not surprising that there is a proliferation of all kinds of applications that make our lives easier through networks. Both in the PlayStore and in Apple Store, we can find apps that offer home food delivery so you can enjoy the food from your favourite restaurants at home. GrabFood, ShopeeFood, and foodpanda are the most well-known companies that offer bars and restaurants the possibility of receiving home delivery orders.
Here are 5 advantages of using third-party delivery in your business:
The external company provides all the logistics related to the orders: order management, transport and riders.
The customer makes the payment digitally, so you will receive the money when the management has been completed.
Everything related to the prevention of risks is managed by the Delivery company.
These app platforms already have a previous portfolio of customers who are used to placing home delivery orders. It has a large customer database, therefore the demand has already been generated.
You have a powerful online showcase: your space of visibility among the most used apps.
In addition, if you have a POS terminal for delivery in your business, you will benefit from receiving orders directly in your POS system, without any other devices and fully integrated with your accounting and your kitchen service.
Disadvantages of third-party delivery service
Here are some of the inconveniences that businesses may find when contracting a third-party delivery service:
Excessive payment of commissions to third parties. Delivery platforms usually make a profit on your sales of around 20%-30%.
You do not control the entire delivery process of your products. It is normal that the restaurateur will have to share customer data with other restaurants that use the same platform.
Having your own delivery system (Self-Delivery) has two major benefits that are related to two fundamental aspects when it comes to managing your business: income and degree of control of your sales.
Advantages of self-delivery service
You don't need to pay commissions: the business is yours and so are the profits. By using an online ordering system for restaurants, you take care of all the order management yourself.
You control the entire process of shipping and delivery of orders.
You have the possibility to offer a much more personalised and unique experience for each customer
Disadvantages of self-delivery service
Here are some of the inconveniences that businesses may find when hiring an internal home delivery service:
You will have to take care of getting a fleet of vehicles for delivery and assume the costs of it.
You will need to hire a staff of riders or delivery drivers as well as pay them their fair share of the money.
The management of the PPE (Personal Protective Equipment) for the workers will be assumed by you, and the safety measures for the delivery staff will be your responsibility.
The online ordering and payment system will be an activity that you will have to solve on your own whether on your own website or app.

How do I optimise the delivery of my restaurant?

Making a delivery service today in an effective and profitable way requires good internal planning, from the moment the order is received to the planning in the kitchen, the packaging process, and finally the shipment.
It is important that you choose good POS software.OrderPin POScan not only help to integrate online orders from different delivery platforms, but also support merchants to start their own self-delivery service. A great part of the success of the whole process depends on an excellent POS system because it will help you in every step of the process and you will save a lot of time.