- by Alex Alper |
- July 1, 2020
- Cloud-Based Technology | 6 min read
How Third Party Delivery Services Are Helping Local Restaurants
To accommodate the wave of people suddenly staying inside because of COVID-19, many restaurant owners have partnered with third-party apps to facilitate the switch to delivery-only operations. Aside from the usual benefits that come with these platforms, such as brand recognition and a built-in customer base, many of these apps have gone above and beyond to assist those currently in need because of the virus.
We already covered how they’re helping out their delivery workers. However, many of these third party delivery platforms are also taking care to help out the restaurants who partner with them.
To demonstrate their dedication to safety, Postmates issued alert reminding workers of the precautions needed to ensure safe food prep and delivery. This includes the usual notice on proper handwashing technique: Twenty seconds with soap under warm water, which employers can encourage by posting reminders above sinks or even including some of the popular songs you can sing to measure the time. Happy birthday twice, for example, Twinkle Twinkle Little Star, and even the chorus to certain popular songs.
Postmates has also implemented a Small Business Relief Pilot, currently tested in the San Francisco Bay Area, where they waived commission fees for small businesses so they can deliver to customers at no cost to the business. Postmates is currently looking to expand this program to other areas, too.
Grubhub has deferred commission fees for independent restaurants affected by this crisis. CEO Matt Mahoney said, “Delaying our revenue will increase the restaurant’s cash flow, allowing them to pay their employees and weather this difficult situation.” Grubhub has set aside up to $100 million for this endeavor and restaurants will have as long as four weeks to repay the fees after the suspension gets lifted.
They also implemented a Smart Promotions feature. For every dollar that restaurants invest in growth, Grubhub will match it. This aims to double the effectiveness of their investments and help restaurants garner business at a time when they need it most.
Furthermore, DoorDash aims to assist affected restaurants by earning them a projected $200 million in additional sales this year. For merchants new to the app, DoorDash now offers a 30-day reprieve from commission fees upon sign up. Unlike Grubhub, this is not a deferral but a complete waiver; they never have to pay back those fees. This will help restaurants improve sales and attract customers without worrying about future debt. DoorDash also works with restaurants to help them improve their food prep protocols so that their workers, merchants and customers all stay as safe as possible.
They have additional benefits for restaurants already on the app. Current partners pay no commission on pick-up orders anymore, and certain eligible merchants will notice a lower commission fee on delivery as well. DoorDash also announced that they aim to add “more than 100,000 independent restaurant partners to DashPass our subscription program which offers $0 delivery for consumers for free.” This is huge for restaurants, as DashPass provenly generates a lot more sales than the regular app.
DoorDash also owns Caviar, another delivery service; by lowering commissions for DashPass merchants and attracting more customers to the platform, Caviar can now afford to waive its delivery fee for everyone as well.
DoorDash further set aside $20 million for merchant marketing to help generate more sales. They’re doing everything they can to support their drivers and help local restaurants stay open, too.
With quarantines still going strong and people growing more afraid to leave the house, delivery apps are a great way to keep your restaurant running despite the closure of dine-in services. They can supplement your own delivery service as they simultaneously work hard to support the local restaurants who have kept them in business.
Many service providers like eatOS integrate with third party apps like these to keep your restaurant running efficiently. Subscribe with us to learn more about keeping the community safe and healthy.
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