The state of restaurant delivery models in both the quick-serve and full-serve restaurant market is changing. Labor costs are growing, and customers expect more from traditional restaurants than ever. They expect delivery regardless of what type of restaurant your organization operates. Restaurateurs that wish to continue growing business size and base must recognize the challenges in delivery, how the industry is evolving, and a few best practices to understand what’s happening.
Challenges Within Quick Serve and Full-Service Delivery
Challenges with quick-serve and full-service restaurant delivery models are significant. Orders will automatically contribute to more work in the kitchen. Counter staff will be inundated with more people picking up orders for takeout, drivers picking up orders for delivery, and more. The situation is always the same. Third-party delivery and in-house delivery models immediately increase demand on your locations, so restaurateurs with limited staff and resources must rapidly increase efficiency to meet demand. Unfortunately, the challenges also surround the limited-functions of tablet-only delivery services. While these services were created to give restaurants with little to no technology an opportunity to offer delivery, they created major problems, explains a past Tacit client:
“We’re in tablet hell for a couple of reasons. One, the tablets themselves are a burden because you’ve got to make sure they’re all turned on. You also must make sure that the app is activated. You know, sometimes overnight the iPad or the tablet will reboot or refresh itself, and then it won’t restart itself automatically. Sometimes team members unplug it and steal the power cord to charge their phone or take it home, and so now you’ve got an uncharged tablet, which honestly happens more and more and more.”
The Industry Continues to Sway
The industry is moving toward more delivery regardless of external influences. Uncertainty in the retail market through 2020 will lead to more customers choosing to work with third-party delivery service providers and pickup orders to take advantage of their favorite dining options, which is also reiterated below:
According to QSR Magazine, “A lot has been made about the fast-casual segment’s deterioration. And there’s no question this coming decade carries a different feel than the previous one. According to industry consultant Pentallect Inc., the segment reported sales growth between 10–11 percent from 2010–2015. It then slowed to 8 percent before falling to 6–7 percent. Yet when you remove the category spotlight, the reality is a broader issue that started to tick once the Great Recession faded. The NPD Group reported in July that fast-casual was the only corner of foodservice to grow its traffic in the last five years. Units expanded at a compounded annual growth rate of 7 percent. In 2013, there were 19,231 fast-casual restaurants in America. By 2017, per NPD’s Fall 2017 ReCount restaurant census, there were 25,118 locations.”
Best Practices to Recognize the State of the Industry
Restaurateurs need information, i.e. data, to align their organizations with the state of the industry. A few best practices for collecting and applying data include:
- Benchmark your current restaurant operations, including the delivery zone and planned growth.
- Recognize the limits of your current systems and technology, including problems with POS integration.
- Integrate your POS with available delivery service providers, creating a comprehensive way to understand delivery data.
- Use analytics to gain insights into your operations, comparing internal to external data to determine your relevancy compared to similar-sized restaurants.
- Hold delivery service providers accountable for added costs or unexplained problems in customer experiences.
- Avoid the pitfalls of Tablet Hell with connected, easy-to-use systems.
Enable Business Continuity in Your Restaurant Delivery Models by Understanding the State of the Industry
Food and restaurant delivery models will soon rise to more than $200 billion by 2025, and restaurateurs of both quick-serve and full-serve companies must start working to improve operations and tap the massive value of delivery. Find out what your organization needs to do to take advantage of delivery going forward by visiting Tacit online today.