January 13, 2025
Restaurants struggle to adapt to changing market demands while maintaining operational efficiency and profitability. Finding the right delivery service can be a game-changing strategy for restaurants that don't deliver.
Implementing a delivery service for such restaurants is more than simply selecting a platform. It's about finding the right solution that aligns with your business model and customer needs.
70% of consumers prefer ordering directly from a restaurant rather than using a third-party service.
If you are a small local cafe, a boutique bistro, or a specialized restaurant with no delivery options, it is time to incorporate a delivery service into your bucket.
You can choose the one that best fits your requirements, from third-party delivery platforms to innovative integrated solutions.
Understanding these alternatives is about more than just keeping with the market pace. You must strategically position your restaurant to generate revenue by capturing new markets.
In this article, we will explore delivery alternatives for restaurants that don’t deliver to choose the correct delivery service that aligns with their unique operational models, financial constraints, and customer base.
Now, let’s get into the nitty-gritty of finding delivery alternatives for restaurants that don’t deliver.
Third-party delivery services act as intermediaries between restaurants and customers, providing a comprehensive logistics solution for establishments without their delivery infrastructure.
These platforms handle aspects of food delivery, including order management, courier coordination, and customer communication.
Essentially, they create a digital marketplace where restaurants can list their menus, and customers can browse, order, and track their meals.
These third-party delivery service providers manage the entire delivery process, from receiving the order to dispatching a courier and ensuring timely delivery.
Canada's food delivery market has experienced exponential growth, particularly in urban centers like Toronto, Vancouver, and Montreal.
Major third-party delivery platforms, such as Skip The Dishes, UberEats, DoorDash, and Fantuan, have revolutionized how Canadian small and medium-sized restaurants approach customer outreach.
Platforms like Skip The Dishes have originated in Canada and support local restaurants to grow. They offer more localized support than international competitors, understanding the unique Canadian restaurant ecosystem.
For many small restaurants in Canada, these platforms have been transformative revenue generators.
While high commission fees are squeezing Canadian restaurants, a 0-commission delivery model like iOrders offers a promising solution to help them thrive.
Consider these insights from CanadaTakeout.com:
For restaurants that don't deliver, these platforms offer an immediate solution to expand their reach.
However, the growth comes with challenges. While delivery services expand reach, the commission fees can significantly impact profit margins.
Typical commission fees for third-party platforms range from 15% to 30% of the total order value. After platform commissions, a restaurant usually receives only 70-85% of the total order value.
This significant cut can substantially impact a restaurant's profit margins, making it necessary to evaluate the actual cost of these services carefully.
While third-party delivery services provide a turnkey solution, they're not a one-size-fits-all answer. Restaurants must weigh the benefits of expanded reach against the potential reduction in profit margins.
This is where innovative solutions like Commission-Free Online Ordering from iOrders become particularly attractive. They also offer Develiry-as-a-service and provide a white-label mobile app for your business.
Let's talk about major third-party delivery platforms and how they operate.
Several key platforms dominate the Canadian food delivery market, offering unique features and service models. Understanding their characteristics can help restaurants make informed decisions.
Let’s explore the market reach, commission structure, strengths, and coverage of these significant third-party delivery platforms:
As we have a brief idea about major third-party delivery platforms, let's explore alternative DIY approaches that can give restaurants more operational control.
Implementing an in-house delivery system represents a strategic option for restaurants seeking complete autonomy over their delivery operations.
While challenging, a DIY delivery program offers complete control over customer experience, branding, and profit margins.
However, establishing a DIY delivery program requires significant investment:
You can move forward with a DIY delivery platform once you consider the below points feasible for your business:
The cost considerations are substantial. A small restaurant might need to consider a range of costs that could start from $3,000 per month for infrastructure and staffing, though this can vary widely based on location and delivery volume.
Moving forward, let's uncover what makes zero delivery fee systems, a game-changer for many restaurants.
Zero delivery fee ordering systems represent a strategic solution for restaurants seeking to expand their delivery capabilities without incurring substantial additional costs.
Platforms like iOrders and similar services partner with restaurants to create a low-overhead delivery model that minimizes financial risk.
iOrders is an emerging player in the restaurant industry that provides innovative and cost-effective solutions. Below is an overview of their services.
iOrders offers three transformative Zero Delivery Fee Ordering services tailored for small and medium-sized restaurants:
Additional iOrders services further enhance restaurant capabilities:
This comprehensive suite stands out by addressing these evaluation criteria comprehensively.
Their White-label Mobile App, Delivery-as-a-Service, and Commission-Free Online Ordering provide a holistic solution that minimizes operational complexity while maximizing financial efficiency.
As we navigate the complex arena of delivery alternatives, let's evaluate the key factors restaurants must consider when choosing a delivery solution.
Selecting the correct delivery strategy is like choosing a business partner. It requires careful consideration of multiple dimensions that can significantly impact a restaurant's operational success and profitability.
Here are the key factors to consider when choosing a delivery option.
Beyond basic pricing structures, restaurants must analyze direct and indirect costs, including platform subscription fees, transaction charges, technology setup expenses, potential staff training investments, and hidden operational overheads.
Each delivery solution presents a unique financial ecosystem that impacts profit margins, requiring careful evaluation of short-term expenses versus long-term revenue potential and return on investment.
The ideal delivery solution exceeds mere technical compatibility, offering a holistic integration approach that minimizes disruption to existing workflows.
This includes seamless synchronization with current Point of Sale (POS) systems, intuitive interfaces for kitchen staff, and real-time order-tracking capabilities.
Furthermore, you must also look for automated inventory management, flexible menu modification tools, and reporting mechanisms that provide actionable insights into order patterns, peak hours, and customer preferences.
A superior delivery platform extends the restaurant's brand experience, focusing on transactional efficiency and creating memorable digital interactions.
Key elements include easy and seamless user interfaces, multiple ordering channels (mobile app, website, QR code), personalized recommendation algorithms, and transparent delivery tracking.
In addition, you must check if they offer multiple payment options, easy customization features, responsive customer support, and mechanisms for collecting and implementing customer feedback.
Modern delivery platforms significantly transform how restaurants interact with customers. They provide data insights, enable personalized marketing strategies, and create opportunities for building digital customer relationships.
However, they also need to improve brand consistency and direct customer engagement.
These factors are major ones that you need to remember when choosing your delivery platform.
With that roadmap in hand, let’s weigh the pros and cons of each delivery alternative and see where they stack up.
Alternative Delivery options have both good and bad sides. Understanding the opportunities against operational challenges can help us make informed strategic decisions.
Well, iOrders address these multifaceted challenges through its comprehensive service suite, offering restaurants a strategic pathway to navigate the complex delivery landscape while maintaining operational control and profitability.
Restaurants no longer have the option of providing delivery service; it is the only way to survive and thrive in the competitive industry.
The future of restaurant delivery is not about choosing between existing models but about creating a customized approach that aligns with individual restaurant goals, operational capabilities, and customer expectations.
Restaurants must remain agile, technologically adaptive, and customer-centric to navigate this dynamic ecosystem successfully.
As consumer preferences evolve, those restaurants will only be those willing to innovate and prioritize seamless, high-quality delivery experiences.
Considering all these points, iOrders emerges as a pivotal solution, offering restaurants a comprehensive toolkit.
With their commission-free online ordering, a white-label mobile app, and delivery-as-a-service, the platform empowers restaurants to expand their reach without compromising operational integrity or profit margins.
Ready to Transform Your Restaurant's Delivery Strategy?
Visit www.iOrders.ca today for a free consultation and unlock your restaurant's full delivery potential.
