Delivery transactions are digging into restaurant profits. In 2016, delivery services took about 7% of business away from restaurants; analysts predict that this percentage could go as high as 40%. Delivery companies insist that they are actually giving restaurants more exposure - which is true - however, the trend is definitely toward delivery services and away from in-restaurant dining.
Why does this matter? In-house diners are more likely to splurge for add-ons such as wine, appetizers, or desserts. And given that the restaurant’s operating costs - including wait staff and other overhead - does not decrease as a result of delivery meals, this contributes significantly to a restaurant’s bottom line, in an industry that already operates on slim margins.
When delivery apps were first launched, it seemed like a win-win for both restaurants and for diners. Restaurants didn’t have to do anything differently, and customers with mobility issues could enjoy great meals. However, delivery apps charge a hefty commission - sometimes up to 30% - but that cost is not ultimately not shouldered by the consumer but by the restaurant, which is then forced to lower costs just to keep people from coming back, even if they don’t physically visit the restaurant but do all their ordering through a delivery app. Add that to the “pay to play” fees charged to restaurants by delivery apps, and any hope of profits disappears.
So what’s the solution? Restaurants have to be able to entice diners to physically dine at the restaurant. One way to do this is through offering dine-in only discounts. GrabQpons can make it attractive for people to enjoy a dining out experience by offering last-minute (real-time) deals to diners in the area. Users can receive notifications of real-time deals being offered by restaurants in the vicinity - which is great news for people who travel for business and want to experience great local eateries without paying full price.
The reality is that currently, delivery services aren’t going anywhere simply because of the sheer convenience; however, restaurants can “bite back” and entice more people to do things the old-fashioned way, and enjoy a dining-out experience that is often more satisfying for the customer, and more lucrative for the restaurant.
To find out more about how GrabQpons can help you “bite back” at delivery companies, visit grabqpons.com