Should operators embrace third-party delivery services?


Should operators embrace third-party delivery services?


While many in the hospitality industry have seen the growth of the third-party delivery market as both a threat and a challenge, there's a growing argument for operators to embrace the change rather than hide from it.

The popularity of delivery can't be denied - Deliveroo grew revenue by 611% to £129m in 2016 and now has over 15,000 UK partners that span over 80 cuisine types, according to Eat Out Magazine. In fact, speaking at the recent Casual Dining Show in London, Mark Smith, the Managing Director of Pho, warned that Deliveroo has the potential to become a highly competitive restaurant operator itself, due to its valuable bank of customer data.

However, some in the industry have resisted signing up to delivery services in an attempt to avoid the commission fees and concerns that come along with placing your brand in a third party's hands. Yet when Pizza Express trialled its own delivery service back in 2015, the experiment didn't last long. Within 12 months, the logistics became too much – Pizza Express changed its mind and signed on with Deliveroo.

As the tech-savvy millennial demographic continue to favour the convenience and speedy service of delivery apps, it appears delivery services are here to stay. Operators may find that by offering delivery, they even open the door to a whole new clientele.

Ultimately, if operators decide to embrace delivery, they need to treat it as part of their own brand promise for the greatest chance of success. Utilising data from delivery services along with Mystery Guest feedback can help inform and improve processes to ensure delivery enhances your brand instead of putting it at risk.

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