up our in-house delivery service. Not included in the profitability scenario listed above is the priceless additional
work our professional drivers do for us. They often distribute menus to hotels, businesses and apartment buildings when they have deliveries in those areas; drivers for
outside delivery companies won’t do that. Our drivers also
help fold boxes, wash dishes and occasionally assist with
prep when they’re not delivering. Again, you won’t get
that kind of work from a third-party company’s drivers.
But if your delivery sales do not exceed $250,000 a
year, you should definitely crunch the numbers and find
out if going 100% with outside food-delivery companies
is right for you.
In our first week with UberEATS, Precinct Pizza ful-
filled 294 orders, for a total of $8,258.17. Thirty percent
of that amount, or $2,477.45, went to UberEATS. I have
contacted many of the major outside delivery companies
and, from my research, I found that none of them allow
their customers to use coupons or any other kind of dis-
count when they place their orders. So you may be giving
up 30% of each order, but these third-party companies’
customers are paying full price on all menu items. If you
are nervous about giving up that 30%, you may want
to run a food cost analysis on your current menu and
determine if it’s time to raise your prices a little bit. That
would also offset some of the costs of giving up 30% per
order to an outside delivery company.
In conclusion, third-party delivery can boost your sales,
but it’s not always a good idea to rely on these companies
exclusively. If you already have an in-house delivery team,
think carefully and do the math before you let them go.
Splitting deliveries with a third-party provider may be the
better option for you!
Rick Drury is the owner of Precinct Pizza in Tampa, Florida. Rick has more than a quarter-century of pizza experience, and Precinct Pizza has been recognized as one of the busiest
pizzerias in the country.