Pros and Cons of Third-Party Delivery for Restaurant Owners

Pros and Cons of Third-Party Delivery for Restaurant Owners


Content Writer: Jaynee Griley Jaynee Griley Senior Digital Marketing Strategist

With more people staying in and ordering delivery, how will your restaurant keep up? It’s time to consider third-party delivery options!

In the past, we talked about the pros and cons of third-party delivery services for consumers, but now we want to focus on how third-party delivery relates to restaurant owners.

It’s more important than ever for restaurants to offer delivery services due to how the world has shifted.

If you aren’t familiar with third-party delivery services, be sure to check out our previous blog for a quick explanation of how these services work.

Now, let’s get into the real reason you’re here!

Pros of Third-Party Delivery

1. Increased Exposure for Businesses

There are a lot of reasons people choose to order food online for delivery but this year it has become a way of life rather than a luxury.

People now associate restaurants with certain delivery services and will look at delivery apps for a restaurant of their choosing.

For example, Chipotle partners with DoorDash exclusively through their mobile app.

When you utilize a third-party delivery service for your restaurant, you can categorize your business by food type.

When people are searching by types of food, your restaurant will appear if they search for what you offer. In turn, this will help increase the exposure of your business!

2. Utilize Mobile Apps

Almost every business or restaurant has a mobile app nowadays. Why? Because apps make it easy to click, buy and deliver.

With apps, it’s easy to customize orders (some apps save recent orders for convenience). We do everything on our phones already, why not order dinner, too?

Plus, consumers are already using third-party delivery apps. You don’t need to re-invent the wheel when it comes to third-party delivery. Use what’s already in place and you’ll see success for your restaurant!

And think about it – If you’re not using third-party delivery apps, it’s likely you’re losing out on customers and market share for your restaurant.

3. Providing Convenience During the Pandemic

Ever-changing times call for shifting marketing strategies. When stay-at-home orders were put in place, many consumers relied on delivery services so they didn’t need to leave their homes.

As a restaurant, you can take advantage of this opportunity by utilizing third-party delivery. You can update menu items at your convenience on the apps and the overall accessibility makes things easier for you as a business owner.

You can even offer specials based on higher ticket prices and consider free delivery options easily through the app. This will save you more time than going in and updating your website with daily specials.

4. Location

When it comes to choosing a third-party delivery service, there are so many options! You have the ability to select which company you want to partner with based on your location.

With third-party delivery, it’s easy to adjust your restaurant’s target radius and delivery locations.

Or, you can focus on a new audience entirely! The flexibility third-party services offer is more than you may realize. If you don’t consider it as an option, you’re missing out on new opportunities to serve hungry customers.

Now that we’ve made it through the pros, let’s discuss the cons.

Cons of Third-Party Delivery

1. Price/Inconsistency in Price

Price is a huge factor you need to consider when it comes to third-party delivery and shouldn’t be overlooked.

Sometimes, the cost of convenience isn’t worth it for your restaurant, so make sure to check your contract with the third-party delivery service you choose.

Before signing, pay close attention to the fine print. Your contract lists time frames and specific windows of time when pricing could change, delivery fees increase, etc.

Some services have very high fees for each delivery service, but they vary based on several things, such as menu prices, taxes, tips and more.

2. Over Saturated Market

Too many options? Who to go with? Who has the best pricing?

Third-party delivery is very competitive but necessary right now, so it’s important to be associated with these services.

Make sure you have the right menu out there and add as much information as possible to make each item appetizing and to help you stand out from your competitors.

3. Location

We talked about location earlier, but it’s time to bring it back up!  

Keep in mind that not every delivery service is available in each city. Times are changing and there may be new delivery services in your area.

Sometimes, particular delivery services dominate in certain cities/regions. Be sure to do your research before signing your contract!

We recommend collaborating with other restaurant owners in town and see what is working well for them and what services they use.

Final Thoughts

Third-party delivery services offer a variety of pros, but there are some cons you’ll want to weigh before jumping in.

With all the change in the world, it’s important to note that we are all going through this together and we will come out of this empowered and stronger than ever.

However, make sure you know what you’re getting because you sign the contract.

Our team at RevLocal has the experience you need to help you make educated decisions when it comes to third-party delivery and marketing for your restaurant.

Click here to schedule a demo with a local digital marketing expert.

This blog was written in collaboration with: 

Brian Seiter - Senior Digital Marketing Strategist
Brian Seiter - Senior Digital Marketing Strategist

Lauren Snyder - Content Marketing Specialist
Lauren Snyder - Content Marketing Specialist


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