In the competitive world of food delivery, getting noticed and driving orders isn’t just about making great food; it’s about strategy. Especially in 2024, with competition rising and profit margins shrinking due to hefty marketplace fees, restaurant owners need to be smart about how they acquire and retain customers. So how can you ensure that you get more delivery orders while keeping your profits intact?
Here’s the playbook for restaurants in 2024, including actionable strategies to boost your delivery orders and build a loyal customer base—without letting high commissions eat into your bottom line.
Marketplaces like DoorDash, Uber Eats, and SkipTheDishes are great tools to get your name out there, but here’s the catch: they’re not designed to help you make a big profit. Paying up to 30% in commissions can leave you with slim margins, especially if you’re running promotions. But don’t let that deter you—use these platforms to acquire customers, then focus on converting them to order directly from your own app or website.
For example, if you’re paying 30% to these platforms, don’t negotiate to reduce the commission. Why? If you negotiate a lower commission, the marketplace will reduce your visibility, prioritizing restaurants that make them more money. That’s how they operate—it’s just business.
Instead, pay the full commission to ensure maximum exposure. When new customers discover your restaurant through a delivery app, focus on converting them into direct, loyal customers by offering special deals, unique experiences, or even exclusive items through your own channels.
Consider how Chipotle used third-party platforms to acquire new customers but then launched their own app to bring those customers in-house. By doing so, they grew their digital sales by 177.2% in 2020 alone .
The problem with promotions like 20% off codes or free delivery is that they seem like a good idea upfront but quickly erode profitability. A 30% commission paired with a 20% discount? 😱 It’s a recipe for razor-thin margins—or worse, losses. Add in additional delivery and service fees, and you're barely breaking even.
Additionally, these deals attract bargain-hunters, who typically lack long-term loyalty. They’ll move on to the next deal or the next restaurant offering free delivery. You need customers who appreciate your food, not just the discounts.
BOGO (Buy One, Get One Free) deals are a classic marketing move, but they can backfire when applied to high-cost items like entrees that involve meat or have a high cost of production. For instance, giving away a steak or high-end pasta dish cuts deep into profits.
Instead, focus on offering BOGO deals for lower-cost items like appetizers or desserts, or even free drinks. Customers will still perceive value in the deal, but you’ll protect your profit margins.
Running a BOGO on appetizers instead of entrees can save you a significant amount. Let’s say you run a deal offering two appetizers for $12 when they usually cost $8 each. That’s a perceived $4 savings for the customer, but it only costs you a few dollars in ingredients, as appetizers usually have higher profit margins than entrees. Smart move, right? 😉
To maximize the value of every order, offer add-ons and sides with high profit margins. When customers are already spending on a main dish, upselling drinks, desserts, or extra sides can add significant profit to the order without additional effort.
Make sure your menu highlights these upsell opportunities, especially during the online ordering process. Having professional photos of each item will increase the likelihood of customers clicking “Add to Order.” It's proven that restaurants that feature professionally photographed food increase sales by 30% .
If you upsell an extra side of fries that costs you $1.50 to make but sells for $5, you’re adding $3.50 to your profit. Do that on every order, and you’ve dramatically increased your revenue.
With delivery marketplaces charging as much as 30% per order, it’s essential to prioritize your in-store and direct orders over marketplace orders. If you’re busy, don’t make your in-store customers or direct-order customers wait longer while you fulfill app orders that deliver lower profits.
Instead, train your staff to prioritize customers who are more profitable—whether they’re in-store or ordering directly from your own platform. This helps foster loyalty and gives your most valuable customers a better experience.
In today’s fast-paced world, convenience is king. A website isn’t enough to compete with food delivery apps. Customers want the ability to order with just a few taps—and that’s where a mobile app can transform your business.
A branded mobile app not only makes it easier for customers to reorder from you directly, but it also opens up powerful communication tools like push notifications and SMS messaging. Imagine being able to remind your customers about special promotions, exclusive offers, or limited-time deals whenever you want.
Plus, having your app on their phone means your restaurant is always on their home screen, not competing with dozens of other restaurants in a marketplace.
Brands like Pizza Hut and Starbucks have demonstrated the power of a branded app in driving repeat business. Starbucks Rewards members, for instance, spend 14% more than non-members . Imagine creating that level of customer loyalty with your own restaurant.
Free delivery seems appealing to customers, but it doesn’t benefit you much. These promotions attract customers who are looking for the cheapest option and are less likely to become long-term patrons. Plus, many customers already have “free delivery passes” through the apps, meaning they won’t be loyal to any one restaurant—they just want free delivery.
Focus on promotions that highlight the value of your food and experience, not just free delivery. You’ll get more loyal customers who appreciate your offerings and are willing to pay a premium for them.
Your restaurant’s walls, menus, and receipts are all prime real estate for marketing your direct ordering platform. Use QR codes, flyers, or posters to promote your app and direct website to in-store customers.
Make it easy for customers to download your app by scanning a QR code on their table or receipt. By gradually shifting your in-store and online customers to order directly from you, you’ll keep 100% of the profits and build a loyal customer base.
Having your own branded app doesn’t just help you retain customers—it also increases the value of your restaurant. Whether you're looking to attract investors or expand your business, showing that you have a loyal digital customer base through your own app can significantly raise your restaurant’s valuation.
Investors want to see restaurants with strong digital strategies, and owning the customer experience through a mobile app sets you apart from competitors that rely solely on third-party platforms.
At the end of the day, maximizing delivery orders and profits comes down to control—control over your customers, your pricing, and your delivery experience. With Deelivey, you can have all the tools needed to thrive in 2024 without ever paying a commission again.
From your own branded app to access to delivery networks and full control over your customer data, Deelivey helps you build a profitable, sustainable business with no hidden fees. Be in control of your orders, enhance your customer experience, and get your restaurant on the fast track to success in 2024.