In this fast-paced and technology-savvy society, consumers are moving strongly towards greater convenience. There’s a strong trend in the popularity of food delivery options.
As a Consumer
You can’t deny that the convenience of a food delivery service is awesome. You simply order online or through an app, pay the delivery service for your food with a credit or debit card, and–Voila!–food delivered to your door. Here are a few tips:
- Know the rules before you order. There may be delivery or processing fee and a minimum food order. Some services are subscription-based instead.
- Order smart. Usually, deliveries can be made in an hour or less, so order a dish that will taste good after you reheat.
- Tip the driver. While not required, tipping a delivery driver is recommended. Some larger orders (>$100) may include an automatic gratuity (10%), so check your bill before you add the tip.
- Be patient. There are many circumstances that may delay your order that are beyond the driver’s control, including heavy traffic, the busyness of the restaurant, etc.
As a Restaurant Owner
These delivery services can be a great boost for business, but also present some unique challenges. With technology and demand heading in this direction, careful consideration needs to be taken to effectively deal with these issues before jumping on board.
Benefits of partnering with a delivery service include the ability to increase sales and reach new markets without having to open a new brick-and-mortar location. It’s also a great way to have a delivery option for your restaurant without the headache (and liability) of buying a delivery vehicle and hiring a driver.
There are several operational challenges, however.
- Food Quality Control – Not all dishes taste great when reheated 30-45 minutes after preparation. It is a big concern that a dish won’t meet the high standard of quality that you can control within your four walls.
- Think about this:
- Partner with reputable services.
- Test the delivery and quality for yourself.
- Think outside the box with packaging or transport solutions.
- Send a coupon with the order for a future dine-in discount. If they come in to use the coupon, ask for feedback about their delivery experience.
- Order Coordination – You don’t want service to your loyal dine-in customers to suffer from the distraction of preparation of delivery orders.
- Think about this:
- Have a dedicated staff person who prepares and coordinates the delivery orders. This person may have to float between to-go orders and another duty.
- Delivery services, like to-go customers, won’t tip that staff well (if at all), so pay or incentivize accordingly.
- Develop a to-go process and checklist to ensure consistency (include utensils, double-check order, etc.)
- Kitchen capacity – When a large order comes in during a busy time, this can create a nightmare for your kitchen staff and increase ticket times for your diners.
- Think about this:
- Give realistic times to the delivery service so you don’t overwhelm the back of house staff.
- Think strategically about changes to your equipment, menu, etc. in order to efficiently serve both to-go and dine-in customers.
- Cost – This will vary; some services charge the restaurant a percentage of the order. Others rely solely on fees charged to the customer.
- Think about this:
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This is an issue that will affect your restaurant, whether or not you agree to partner with a service. Being proactive will help you reap the benefits while minimizing the hassle of the challenges.
Food Delivery Options
Several food delivery options are available to us in San Antonio. Some of the major players here include:
Two quick tax notes –
- The deadline for mailing 1099s to the IRS and W-2s/W-3 to the Social Security Administration is now January 31, 2017 (in prior years, the due date was Feb 28 for submission to the government).
- A new Form I-9 has been released. The old form is now invalid (as of January 21) and the new form must be used for all new hires.
Happy dining,
Cassie
Upcoming events to consider:
San Antonio Restaurant Week – January 16-28
SA Stock Show & Rodeo Bar-B-Que Cook-Off and Festival – January 27-28
Tater Tots & Beer Festival – February 4
Cocktails & Culture: Above and Beyond – February 22
Texas Monthly’s Cook Like a Texan Feast – February 26
Race to the Taste – March 2
5K Wine & Beer Run – March 18
Express-News Top 100 Dining & Drinks Taste Event – March 21
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I would love to hear your thoughts or comments on the blog! If you would like to subscribe or send me your comments, please email cdouglas@atkgcpa.com.
The views and opinions expressed within this blog are those of the author(s)’ and do not necessarily represent the views and opinions of ATKG, LLP, its owners, employees, or affiliates.
