Food delivery apps are seeing big upticks in traffic as restaurants that have never done delivery before signing up for them. But some establishments, especially local restaurants have learned that they’re better off going it alone. Third-party delivery services bring customers and visibility, but also take a large percentage of each sale, usually between 25 and 30 percent. Since the mass closure of restaurants due to the pandemic, various delivery apps have tried to offer better deals at lower prices and have even offered discounts. However this has done little to curb the ongoing woes most restaurants are now facing.
COVID-19 has pushed restaurants who are already operating on thin margins, to take stock of business operations and re-examine their relationships to delivery apps. Advocacy groups and City Governments are pressuring the third-party delivery companies to lower fees. Yet many restaurant owners say using those services still is not financially worth it. General food costs for restaurants take 35 percent of their profits, if you add in the 30% third party delivery-service fees, then that leaves little to no actual profits for the business.
What Makes a Delivery Service “Successful”?
According to MontrealEater.com Seventy-seven of Foodtastic’s 92 restaurants are currently closed and sales have dropped to $800,000 from $3.8 million. However, two of its franchises Au Coq and Les Rôtisseries Benny are actually flourishing in such harsh times. These two delivery restaurants have seen sales increase 10 percent compared to this time last year thanks to their in-house delivery services. Many restaurants that were using third-party delivery services prior to the government shutdown have closed their doors for good. Just like Foodtastic, many restaurants are finding ways to have an in-house delivery system and end the vicious cycle of delivery to third-party service providers. A 2017 Morgan Stanley study predicted that by 2022, digital food delivery in the U.S. may take up 11 per cent of the total restaurant market, compared to its current six per cent share.
ZeMaas being one such delivery provider in the market is setting standards straight right from day one and making it clear to its clients that it’s there for a longer time and can help restaurants thrive even in such tough times.
ZeMaas Offers A Shining Solution in Dark Times
ZeMaas offers the same delivery services as any other third-party service but with enhanced solutions. ZeMaas deliveries on demand. So, you can call them only when you need them. You pay them only when you use their service. The payments required is a minimum amount that is easily affordable for any restaurant business.
While most restaurant owners may think that it is just easier to create their own in-house service, the endeavor comes with its own list of problems. There is the hassle of having more staff, having dedicated vehicles for deliveries and tracking of the delivery system. If the project does not fall through, it will all cause your entire business to come crashing down.
By going with ZeMaas, you will spend far less money than you would building your own in-house delivery service and start seeing more profits at a faster rate.
Customers everywhere who forgo dining out and embrace the app-based convenience and added fees of having food appear at their doorsteps should know that not all restaurateurs are fans of this revenue stream. But with third-party apps and in-house deliveries, consumers have reported various issues where the food arrived late and possibly even cold. Using third-party services to schedule and manage deliveries takes control out of the hands of restaurateurs, some of whom are very particular about how their food is presented.
The effects of the COVID-19 pandemic are going to last beyond the end of the shutdown. Delivery and takeout will continue to make up a major percentage of restaurants’ business. You can be certain that your business can make more profits and succeed once again with ZeMaas as your delivery partner.
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