This is the second part of podcast series on how delivery aggregators are destroying the Restaurant industry.
We discuss what tactics restaurants are using to build profitable Restaurant delivery businesses.
If you missed part I, make sure you catch up on it, because we discuss all of the issues, particularly with Deliveroo.
Don’t forget to check out our free Restaurant Website Audits. If you think you’re missing out on your fair share of customers, maybe your web developer has made some of the common mistakes. Book a free 15 minute no-obligation chat with one of our team and get some ideas on how to find more customers.
The restaurant industry is dying and who’s the culprit? Delivery aggregators – Deliveroo, to be a little more specific.
We’ve talked about all of the issues that come from working with delivery aggregators and Deliveroo in particular in the first part of this series. If you haven’t listened to that yet, you should definitely check it out before you proceed with this episode. Check out part 1 here.
Restaurants all over the world have taken a huge hit from COVID-19 just like other businesses, and while the world is slowly healing from the pandemic, the restaurant industry is struggling a little bit more.
The popularity of Deliveroo has drawn many customers to use the platform over traditional dining and deliveries, and the demand has placed many restaurants in a position without a choice but to sign up for it as well. It’s alarming how they use and manipulate the data they receive from restaurants, but we can fight back and save the restaurant industry from its death.
Restaurant owners need to be extremely creative to fight back against Deliveroo and other delivery aggregators.
Here are some tactics you can use so you can build profitability through the pandemic and the threats that come from Deliveroo, their dark kitchens, and other delivery aggregators on the rise:
Promote in-restaurant experience
One big thing restaurants can offer that Deliveroo can never have is the experience that customers get when they dine in your restaurants. Eating out is a very different experience from eating at home and you need to remind your customers of that.
You need to think long and hard about what experiences you’re going to offer because there are certain advantages in eating at home that you need to beat. Figure out what it is your customers are coming in for and focus on that.
It can be the quality of the dishes you’re serving, the smile from your servers everytime someone comes in, or the discounts and promotions for corporate offices, groups, birthdays, and more. Find what it is that people value in your restaurant and use it to your advantage.
Running an “Order Direct and Save” campaign
An “order direct and save” campaign is one of the major lifesavers in the restaurant industry. Getting your customers to come to you directly eliminates the need for delivery aggregators, the commission rates, and other fees that you and the customer have to pay.
You can give them a freebie or discounts on their orders if they place them with you directly and in exchange, you get to do business directly with your customers. You get the data that you need to improve your food, campaigns, and service in general.
Adding a “pick-up only” service
Many restaurant owners tend to shy away from the “order direct and save” campaigns because they do not do deliveries in general and are not interested in implementing them. That’s totally fine and there’s no need to worry because you can still have a similar campaign in place with “pick-up only” services.
A “pick-up only” component in your services can be really powerful. There is a huge market for it and a lot of restaurants have been doing it over the past few years too.
A lot of people will be drawn to your restaurant with the “pick-up only” service, especially those who are on their way home and won’t have time to prepare a meal. They can order directly from you and pick up their order before they head home.
Flyers with special price lists for direct orders
People are very quick to jump on anything that will allow them to spend less. Have a special price list for direct orders to draw more people to ditch Deliveroo’s heavily marked up prices, print them on a simple flyer, and give them out to as many people as you can.
Be detailed with the flyer you’re giving and tell your customers that the special prices and discounts will only apply if they order directly from you for their deliveries or pick-ups. Pass them around, attach them to deliveries, and leave them where people can see them!
Tell your story
It’s interesting how people are drawn to places that tell a great story. This is something you can absolutely take advantage of, especially if you’re running a restaurant that serves foreign cuisine!
There will always be people who prefer getting their food from big names, but there will always be people who prefer to support local businesses more too. Tell your story and let your customers know what kind of work goes into preparing their meals, where your dishes come from, and what they’re supporting when they’re supporting you.
It is something that Deliveroo and their dark kitchens cannot compete with and it’s also something you can use to take your marketing to another level. Your story will help you drive more people to your restaurant whether they plan to dine in or pick the food up.
Talk to your restaurant association
Many restaurants are part of associations and if you belong to one, you have to start the conversation about this. You need to make sure that people are talking about the problematic way that Deliveroo is taking over the restaurant industry and how you’re all losing revenue and customers from it.
A lot of restaurant associations give promotions and discounted packages to delivery aggregators like Deliveroo with the idea that they’re getting more customers because of it, but they actually don’t earn anything from it either. The only one winning in the situation is Deliveroo and it can’t stay that way.
Nobody really likes being the first person to speak up, but if we’re going to save the restaurant industry and everyone in it, someone should. If they want a fair playing field, which most, if not all restaurant owners want, they would take part in the movement to eliminate Deliveroo’s problematic systems.
Ultimately, the only way we can fight back and save the restaurant industry is to work together as a community. You have to get the word out, spread it as much as you can, and encourage each other to support local businesses more.
If we can decrease the number of people using these delivery aggregators, we can save the restaurant industry.
Check out the Secret Sauce podcast shownotes for more information on this episode.
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