How to Optimize Your Delivery Services for Maximum Revenue
Prior to the global pandemic, food delivery services were already booming and expecting to see a drastic rise in demand over the coming years. With many restaurants closed for dine-in service because of COVID-19; however, the surge in demand for delivery services happened more quickly than originally anticipated. This had led many new restaurants to partner with food delivery services like Uber Eats, Postmates, DoorDash and GrubHub. Whether this is the case for your business, you are still considering a delivery service partnership or you have utilized the services for years, it is crucial to understand how to optimize your delivery services for maximum revenue.
1. Understand Consumer Behavior
Now more than ever, it is key to understand consumer behavior. The COVID-19 virus has dramatically changed the way that people live their daily lives. Many consumers have shifted to working at home, have decreased hours or are now entirely unemployed. Because of this and the uncertainty over the future of many companies, a lot of consumers are restricting their spending on non-essential items such as clothing and entertainment. Despite this, staying at home has increased the demand for groceries, inexpensive take out and food delivery services. In fact, third party delivery orders increased by a whopping 106% as of April 2020, compared to the prior year.
It is also necessary to understand the ongoing concerns of consumers in relation to health and safety. Many are still fearful for their own health as well as the health and safety of those around them. This has led to a desire for contactless delivery options and food packaging that remains sealed until it is delivered. Instituting these practices can provide comfort to consumers and ensure their safety, as well as the safety of your staff members.
2. Invest in Online Channels
A strong online presence is important if you plan to maximize revenue through delivery services. Online channels such as social media, a business website, and Search Engine Optimization (SEO) are a wise investment. Social media platforms can allow you to keep patrons updated on hours of operation, menu changes and safety precautions that are being taken because of COVID-19 while a business restaurant may allow you to showcase your menu and location. Meanwhile, Search Engine Optimization (SEO) can be a helpful tool for drawing in new patrons that may not be aware of your establishment.
3. Simplify Food Preparation in Kitchen Operations
While speedy kitchen operations are always necessary to provide customers with a positive dining experience, it is even more important when it comes to delivery. In these cases, patrons do not have appetizers, the venue, or drinks to act as a distraction while the food is prepared. Likewise, many food delivery services abide by strict delivery timelines and delays can cause drivers to lose tips or alter their ratings. To appease customers and drivers, attempt to simplify food prep in the kitchen for delivery orders to cut down on the wait times that are experienced. It can also be helpful to integrate third party food delivery services with your existing point-of-sale system with an app such as OrderOut.
4. Rethink Your Supply Chain Management
When it comes to delivery services, the supplies, packaging and even ingredients that you use may vary from your typical dine-in needs. Because of this, you may need to rethink your supply chain management to maximize your revenue. This is especially true amidst the COVID-19 crisis where many suppliers are experiencing shipping delays, out of stock products or general shortages.
Along with these steps on how to optimize your delivery services for maximum revenue, in these uncertain times, it is also important to prepare for the future. Be sure to anticipate different scenarios and how they would affect your business and manage your cash flow accordingly.
