THE GOOD, THE BAD, AND THE DELIVERY FEE
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THE GOOD, THE BAD, AND
THE DELIVERY FEE
A goal without a plan is just a wish!
– Antoine de Saint-Exupery
Funded in part through a cooperative agreement with the U.S. Small Business
Administration, the Connecticut Department of Economic and Community
Development, and UConn.
C T S B D C .CO M
AGENDA
01 Hello!
02 What we hope to accomplish
03 Restaurant survey results
04 Discussion Questions
05 Final thoughts
C T S B D C .CO M 2
What We Hope to Accomplish
1. Goals for attending the roundtable discussion:
• Share clients’ experience, issues, and best practices.
• Create a sharable document of observations and recommendations
(please share your email address to receive the output from today’s
roundtable discussion)
2. What are your questions?
C T S B D C .CO M 3
Restaurant Survey Results
Q2. Which food delivery platforms have you worked
with (currently or in the past)?
Description Percent Count
Grubhub 28% 17
Doordash 30% 18
UberEats 28% 17
Shoreline Menus 2% 1
Hartford Menus 0% 0
Other 13% 8
C T S B D C .CO M 4
Restaurant Survey Results C T S B D C .CO M 5
Restaurant Survey Results
Q5. What is your level of satisfaction with the
food takeout/delivery platforms in regards to
enhancing service and convenience?
Description Percent Count
Strongly Satisfied 4% 1
Satisfied 30% 7
Neutral 30% 7
Dissatisfied 26% 6
Strongly Dissatisfied 9% 2
C T S B D C .CO M 6
Restaurant Survey Results
Q6. What is your level of satisfaction with cost
of the platform?
Description Percent Count
Strongly Satisfied 0% 0
Satisfied 0% 0
Neutral 14% 3
Dissatisfied 41% 9
Strongly Dissatisfied 45% 10
Q7. What is your level of satisfaction with
impact of the margins?
Description Percent Count
Strongly Satisfied 5% 1
Satisfied 19% 4
Neutral 14% 3
Dissatisfied 29% 6
Strongly Dissatisfied 33% 7
C T S B D C .CO M 7Restaurant Survey Results C T S B D C .CO M 8
Discussion Question #1
In your experience with clients, for restaurants that are satisfied with takeout/delivery
platforms:
1. What are they doing well?
2. What are they doing differently?
3. For ones that are struggling, why are they struggling?
Notes and Observations:
• Clients will increase sales
• Consider the overhead of the front of the house separate from takeout/delivery
• Clients lose control of their customers, 3rd party platforms own their customers. Must have a way to connect and
market directly to their customers
• Current Dominoes promotion – will pay customers $3.00 to pick up food if ordered through their app.
• Consider the 30% fee as part of the marketing budget vs. operations budget
• Due to labor shortage, not all restaurants able to open to full capacity, suggestion to restaurants to open their own
App for pickup/takeaway
• Pay attention to customer experience in regards to delivery when going through a 3rd party. Customers go on and
write the Google reviews about the restaurant and not the delivery company
• Consider preferences of different generations, customer segmentation when considering the approach, e.g.
Boomers may prefer calling in orders while Millenials and GenZ prefer to order through an app or app sites.
• Menu modification tailored for takeout/delivery
• Clients can turn off customers ability to order through platforms at specific times
C T S B D C .CO M 9Discussion Question #2
What creative or other solutions have your clients’ come up with to meet the market demand
for takeout, and delivery?
Notes and Observations:
• Consider embedding 3rd
party apps, e.g. Chownow into website and direct customers to order takeout/pickup
through there. Less fees incurred by restaurants.
• Local companies have created alternatives that focus on a specific geographic area for a flat fee. Explore
alternatives that exist in your local markets via food delivery, concierge services, etc.
• Look at this as a separate stream of revenue and separate cost of goods to see if it makes sense to offer this
• What is the labor cost increase for increased sales?
• Did restaurants increase prices for takeaway/delivery? Understand prime costs of restaurant. Back to
fundamentals of their business model.
• Focus on customer experience / customer service.
• How can you be a leader in the marketplace in what you do and what you offer
• Some restaurants offer Ghost kitchen models where it is food production only and fulfill 3 rd party orders only.
C T S B D C .CO M 10Discussion Question #3
What alternatives to the big national platforms are available in your market area?
Notes and Observations:
1. Look at Shoreline Menus concept in CT – restaurant owners came together to create a
cooperative, develop shared app, comarketing. Fees are 10%. Restaurants own their
customers lists. Share in the profits of the cooperative. Focus on hyperlocal. Hire delivery
drivers for cooperative. Replicate the model to other markets
https://sites.google.com/view/eatzyterritoryowner/our-growth – For restaurant owners
https://shorelinemenus.com/ - Public site
2. Google has a way for people to order directly through their Google Accounts.
Orderfood.google.com. Customers can select the restaurant and choose which delivery
service if multiple are offered.
3. Chamber of Commerce in rural markets created this model. Restaurants must be
members.
C T S B D C .CO M 11Discussion Question #4
How can we help clients think differently about takeout/delivery platforms via:
Economics, Market Opportunity, Staffing, Operations & Integrations
Notes and Observations:
Staffing – What is the proportion of staffing dedicated to takeaway delivery vs. front of house?
Economics – Conduct an analysis of COGS for takeaway/delivery only. What is your true cost and true margin for
delivery? Look at different cost and revenue centers. Food line, liquor line, and delivery line. Don’t saddle with
the front of the house expenses. Only put higher margin items on the menu. Look at fees of these platforms as
part of marketing budget
Operations & Integration - Do you offer takeaway/delivery during busy hours or shut if off? What type of
restaurant are you? Do you trim your menu for delivery? Only offer foods that travel well. Make sure to label
what foods are and what customers ordered
Website – optimized for mobile. Order here button clearly delineated. Order through social media, e.g.
Instagram. Some companies will create a website, online ordering app, social, etc. fully integrated into the POS,
e.g. Bento Box. Make sure your system or systems provide a good customer and employee experience. You don’t
want to look like the house with numerous mismatched additions
Market Opportunity – Understand who your target customer is. What experience are you offering in your
restaurant. Is it a place to eat or is it an experience akin to dinner and a show? Or, are you offering family style
meals to busy families? Focus on what your market wants/needs.
C T S B D C .CO M 12Michelle Ouimette Steven Semaya
michelle.ouimette@uconn.edu steven.semaya@uconn.edu
Funded in part through a cooperative agreement with the U.S. Small Business
Development Center, the Connecticut Department of Economic and Community
Development, and the University of Connecticut.
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