The Ultimate Guide to Growing Your Food Delivery Business - DECEMBER 2020
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The Ultimate Guide
to Growing Your Food
Delivery Business
November 2020
DECEMBER 2020
Table of Contents
Preparing Your Restaurant For Delivery 1
Logistics 3
Restaurant Technology 7
Using QR Codes 11
Delivery Apps 15
DIYing Delivery 18
Top Delivery Apps 19
In Their Own Words 21
Avoiding Traffic Jams 25
The Food 28
Crafting a Delivery Menu 29
Troubleshooting 31
Food Costs 32
Increasing Your Margins 33
Creative Menu Ideas 35
Packaging 37
Food Photography 45
Delivery-Only Kitchens 51
Introduction 53
Cost Comparison 55
Different Kitchen Models 57
The NBRHD Kitchens Model 59
Success Story 61
References 63
Preparing Your Restaurant For Delivery
2 PREPARING YOUR RESTAURANT FOR DELIVERY
Logistics
Your restaurant’s success pivots on a series of complex systems
operating without a hitch. Adding delivery to this delicate mix calls
for thoughtful planning. Everything from rethinking your kitchen and
dining room layout to streamlining your menu is on the table.
It’s a big ask, we know. But by tackling the logistical challenges of
delivery from the start, you’ll save yourself considerable time—and
money—later. Even so, don’t bolt anything to the floor until you’re
sure it will work for the long-term.
ASSESSING YOUR SPACE
There are two key spatial concerns to address when offering take-out
and delivery:
1 Storage for packaging
Buying delivery packaging in large quantities can mean
considerable savings—but you’ll need somewhere to store
it all. Consider repurposing dining room space into storage
space. Alternatively, store packaging off-site where rent is more
affordable—like a storage facility.
2 Order-staging area
Create a convenient, temperature-controlled area for orders
awaiting pickup. Ensure it’s easy for your staff to match each
order (and all its parts) to the customer or delivery driver picking
it up.
4 PREPARING YOUR RESTAURANT FOR DELIVERY
Logistical Logjam
Precisely how you’ll tackle the logistics of preparing your restaurant
for delivery will vary with the opportunities and limitations of your
site and concept, not to mention your firepower and refrigeration
capacity, the size and complexity of your delivery menu, and whether
you’re serving customers on-premises.
Test out a few configurations when reconfiguring your space to see
what works best. Here are some key considerations:
Dedicate a space for expediting
orders. As your delivery service
grows, consider whether it’s worth
having an employee who exclusively
fulfills delivery orders
If needed, create two identical
production lines back-of-house Designate a
so you don’t delay in-house convenient pickup
orders. One line can be closed point that won’t
when volume is lower disrupt guests
*Always consult local ordinances before making modifications to your space.
6
Convert dining room Install a warming cabinet and
space into storage space a fridge for staging orders as
for packaging if needed close to your pickup point as
possible. Initially, a shelf or
two within a fridge may work,
but consider whether you’ll
need to devote an entire
fridge to delivery in the future
PREPARING YOUR RESTAURANT FOR DELIVERY
Use clear signage to show
delivery drivers where they
can grab orders without
waiting in line or blocking
staff or customers
Restaurant Technology Investing in the right restaurant technology and hardware can help you convert and retain customers, keep your margins strong, and optimize your operations. Some digital enhancements are cheap and straightforward to implement—like QR codes. Other technologies will require deeper research—like upgrading your point-of-sale (POS) system.
8 PREPARING YOUR RESTAURANT FOR DELIVERY
THE FUTURE OF POINT-OF-SALES (POS) SYSTEMS: Think the modern POS is just a touchscreen cash register? Think again. Today’s systems can help you increase your sales, make tough business decisions, and even improve the guest experience. The right POS can increase your profits by: Crunching data on food costs vs. item price Identifying best-performing items by volume and profit Automatically prompting upselling opportunities It can help you make business decisions by: Tracking front of house performance Identifying busy and slow times so you can adjust staffing Flagging underperforming menu items And it can help you serve customers through: Tableside ordering and payment Quicker, mobile, and easily split bill payments Loyalty programs Easy setup for online take-out orders Tip: Planning to partner with a third-party delivery service? Check that your preferred POS will integrate with their system.
10
SHOULD YOU UPGRADE YOUR POS?
A new POS can help your bottom line—but between hardware and
software subscriptions, it can be an expensive move.
Here are some questions to ask if you’re deciding whether to
upgrade your POS:
1 Do you expect very high volumes of delivery orders?
2 Will you need to be able to turn off online ordering during in-
house rush times?
PREPARING YOUR RESTAURANT FOR DELIVERY
3 Does your current POS sync with your inventory and help you
save money by providing detailed data on food waste or help you
order stock based on predicted customer patterns?
4 Will you be using a third-party delivery platform like Uber Eats,
DoorDash, Grubhub, or Postmates?
5 Will you be using your own delivery drivers and your own online
ordering system?
6 Do you want a long-term solution that can handle delivery
dispatch, inventory and scheduling?
7 Do you need online and on-site payment processing?
8 Are your staff spending too much time manually inputting orders
from delivery apps into your POS system?Using QR Codes A QR code is a simple, touch-free way to connect your customers with your menu, website, or payment portal. Simply put, a QR code is a barcode that your customers scan with their smartphone—a feature that most models now do automatically through the built-in camera app.
12
QR codes can connect customers to any web page or online portal
of your choosing. This could include:
Your menu, either on your website or within a third-party delivery
app
One of your social media pages
A web page containing special information—like promotion details
or COVID-19 safety precautions
A review site, like Yelp or Google My Business, for prompting
customers to share positive feedback
HOW TO SET UP AND USE QR CODES:
It’s free and easy to set up a basic QR code using an online service
or your POS software. For dynamic QR codes (which feature editable
destinations—ideal for materials that are expensive to reprint) or QR
codes that match your branding, you may have to pay a small fee.
PREPARING YOUR RESTAURANT FOR DELIVERYHere are a few places that you can put those QR codes to work: 1 Promotional materials Include them on posters, flyers, and coupons to make it easy for potential customers to access your menu. 2 In-bag marketing Include a QR code on a photogenic business card, sticker, or postcard in your delivery orders to help customers find your menu again. 3 Table talkers Use QR codes to direct customers to a touch-free menu, or even an interactive menu where they can order and pay for meals, allowing your staff to serve more tables and offer additional social distancing. Some POS systems have this full-service functionality, and it comes built in with third-party delivery services like Waitr, DoorDash, and Uber Eats.
14
4 Curbside signage
Posting a QR code outside can facilitate to-go orders and work
as an advertisement for foot traffic.
PREPARING YOUR RESTAURANT FOR DELIVERY
5 Receipts
With some POS systems, you can offer touch-free payment
through customers’ payment-enabled smartphones using a QR
code. You can also set it up yourself through payment platforms
such as PayPal.
DO: DON’T:
Use QR codes in digital
Use your QR code like
spaces (like social media)
any other graphic your
where you can offer a
customers might see offline
URL or photo insteadDelivery Apps Americans are more comfortable than ever ordering delivery, with sales for delivered meals growing 125% year over year (September 2020; Second Measure). So, what’s the best way for you to get a piece of the projected $26.5 million (Statista) spent on delivery from U.S. restaurants? Partnering with a delivery app is a simple way to dive in.
16 PREPARING YOUR RESTAURANT FOR DELIVERY
Investing in the right restaurant technology and hardware can
help you convert and retain customers, keep your margins strong,
and optimize your operations. Some digital enhancements are
cheap and straightforward to implement—like QR codes. Other
technologies will require deeper research—like upgrading your
point-of-sale (POS) system.
ABOUT THIRD-PARTY DELIVERY APPS
Third-party delivery apps allow you to outsource the lion’s share of
logistical challenges stemming from delivery. Plus, they’ll get your
brand in front of a huge new customer base while you focus on creating
delicious meals. You can typically start taking orders via delivery app in
just a few days.
Most delivery apps charge a per-order commission fee of between
15%-30%. This fee helps to cover the cost of delivery drivers,
software development and, in some cases, payment processing. You
may also pay additional fees for:
Participating in in-app promotions
One-time setup costs
Hardware costs for tablets
A professional food photoshoot
Tip: Keep in mind that consumers often use more than one of
the four major apps for food delivery, and many brands choose
to partner with more than one delivery app.DIYing Delivery
18
Of course, the option exists to run delivery yourself if you want more
control of the entire process and to avoid those commission fees.
But—and this is a big but—doing it yourself comes with its own costs
and headaches.
CO
S
O
NS
PROVIDING DELIVERY IN-HOUSE:
PR
Must source and pay for an
Full control of the delivery online menu, food photography,
experience from kitchen to ordering, dispatch, payment
doorstep systems and any associated
hardware (e.g. tablets)
Responsible for hiring,
No commission fee paid background checks,
to delivery apps insurance, and training of
delivery drivers
PREPARING YOUR RESTAURANT FOR DELIVERY
Not competing directly No access to the larger
with similar restaurants within a prospective customer base
delivery app provided by delivery apps
Increased control over Must develop and execute your
customer data and own promotions and loyalty
customer relationships programDelivery Apps
Conveniently, delivery apps sometimes offer a no-commission trial
period so you can figure out if they’re the right fit for your business
before making a big investment in your own delivery service.
THE BIG FOUR
When diners order meals through an app, they’re overwhelmingly
ordering with DoorDash, Grubhub, Postmates, or Uber Eats:
OTHER: 1%
POSTMATES: 8%
GRUBHUB: 20%
DOORDASH: 49%
UBER EATS: 22%
Pie Chart: Sept. 2020 Share of Meal Delivery Monthly Sales
(Source: Second Measure)20
DOORDASH GRUBHUB POSTMATES UBER EATS
# OF
310,000+ 140,000+ 500,000+* 400,000+
PARTNERS
# OF
20M 30M 10M 103M**
USERS
# OF
GLOBAL 4,000+ 2,700+ 4,200+ 6,000+
CITIES
Yes No
FREE
(as of Nov. (have in No No
TRIAL? 30, 2020) the past)
USE
YOUR OWN Yes No No Yes
DRIVERS?
Postmates
DashPass: Grubhub+:
Unlimited: Eats Pass:
SUBSCRIPTION Free delivery Free delivery
Free delivery, Free delivery
SERVICE and lower fees and
PREPARING YOUR RESTAURANT FOR DELIVERY
no surge and discounts
for users promotions
pricing
Free trial, #1 in customer
Avg. delivery
free menu spend, deliver
Robust time under
photoshoot, more than
SOME promotions 30 mins;
biggest share meals; “Party”
DIFFERENCES and loyalty Sponsored
of monthly ordering;
program Listings
sales among promotions,
promotions
delivery apps 24/7 delivery
*Postmates, partners’ include stores
**Includes other Uber platforms, Q3 2019
Sources: CNET, Statista, Business of AppsIn Their Own Words
Here’s what DoorDash, Grubhub, and Uber Eats each say about their
approach to delivery:
DOORDASH
“DoorDash is a value-add to your current business as it puts you in
front of a whole new customer base. Your menu is featured on the
largest food delivery app in the market, providing a new revenue
stream, all incremental to your current business. With features like
marketing promotions, off-platform delivery fulfillment, and online
storefront, DoorDash helps you grow your brand and stand out from
your competitors. You’ll be equipped with an easy-to-use Merchant
Portal for all of your tracking, reporting and updating needs as well.”
T IP
T OP
O R D A SH ’ S
“Think about how you organize your third-party app menus
DO
and what you offer. Traditionally, menus are organized based
on meal structure for on-premise dining, but customers
ordering delivery are not thinking about their meals the same
way. Restaurants have to keep in mind that some menu items
are difficult to execute or won’t travel well, so leaving those off
of third-party menus may make more sense.”22
GRUBHUB
“Grubhub is a leading food-ordering and delivery marketplace with
30 million active diners across the U.S. With more than 20 years
of experience, Grubhub’s mission is to use our platform to drive
more orders, new customers, and provide delivery services to our
restaurant partners to help them grow their business. With the
industry’s most robust rewards and loyalty engine, Grubhub helps
restaurants drive diner acquisition, order volume, and overall sales
through data-driven marketing campaigns and diner engagement
programs.”
PREPARING YOUR RESTAURANT FOR DELIVERY
P TI P
TO
U B H U B’ S
“Optimize your delivery menu. We’ve seen restaurant brands
GR
add meal kits, combos, and other high-value items exclusive to
their delivery menus to drive higher average tickets on these
orders and maximize profitability.”UBER EATS
“Uber Eats is helping over 400,000 restaurants in more than 6,000
cities globally reach more customers and grow their business. With
an average delivery time under 30 minutes and with over 103M
active users, restaurant owners can reach even more customers by
promoting their unique brand and menu with our suite of delivery and
marketing solutions.
“Let your restaurant stand out:
Uber Eats’ unique Sponsored Listings solution lets restaurant owners
advertise their restaurant and put it front and center in the Uber Eats
feed for potentially millions of new customers.
“And drive repeat business:
Reward customers with a loyalty program that keeps them coming
back. Uber Eats’ loyalty programs offer a way to build long-lasting
relationships with your restaurant’s biggest fans.”
T IP
T OP
E R E AT S ’
“From offering low-cost pickup or takeout services, using your
UB
own delivery people, to fully integrated online ordering with
your website, Uber Eats gives you the ability to optimize your
restaurant operations and save on costs.”24 PREPARING YOUR RESTAURANT FOR DELIVERY
Avoiding Traffic Jams Restaurant teeming with foot traffic since teaming up with a delivery app? Great news! Here’s how to keep your restaurant from overcrowding: More than one entrance/delivery window: Designate one of your entrances or delivery windows for pickup orders, keeping in mind all the places that delivery drivers can park in your area and which direction they may arrive from. Single entrance: Print some clear signage to direct delivery drivers to your pickup point or a waiting area. A well-designed sign on your front door is perfect. Add another posted sign or sandwich board inside if further direction is required.
Delivery Apps
26
Envisioning delivery as a major part of your business, but feeling
limited by your space? It might be worth considering expanding to
a delivery kitchen (also known as a ghost kitchen, virtual kitchen, or
dark kitchen). We’ll dive into delivery kitchens in more detail in Part 3.
PREPARING YOUR RESTAURANT FOR DELIVERYThe Food
28 THE FOOD
Crafting a Delivery Menu
Your restaurant’s menu is the culmination of your creativity, your brand,
and what your guests love. Your delivery menu adds a few twists to
that formula. Typically, top-performing delivery menus are made up of
15–20 dishes that meet the essential criteria outlined below:
EACH ITEM SHOULD: HOW TO DO THIS:
Find the right food and packaging
Travel very well combination for withstanding
time and temperature change
Be able to be If an item’s prep time delays the
prepped in a rest of the order, modify it or
timely manner remove it from the delivery menu
Have a profit margin that Adjust your pricing based on
covers your delivery costs accurate recipe costing
Cut or overhaul dishes that add
Sell well complexity to your operation
without returning profits
Tip: Does 20 items feel like too few? Keep in mind that delivery
customers want to make quick decisions. By providing just your
very best dishes, you’re actually doing them a favor—and your
delivery service will be simpler to execute well.30
PORTABILITY: DESIGNING A MENU THAT TRAVELS WELL
Delivery can turn a carefully constructed meal into a soggy mess. By
testing each of your menu items under real-world conditions, you’ll
spare customers the disappointment of a subpar meal—and keep
them coming back for more.
Testing can be as simple as preparing each of your dishes, packaging
them as if they were going to be delivered, and then storing them in
an insulated delivery bag for about 30 minutes. Taste each item and
consider how it looks compared to fresh. Is it what you want your
customers to experience?
Want to be even more thorough? Take your delivery for a test drive
to the edge of your delivery radius. While you’re out, have your chef
prepare the same items so they’re fresh on your return. Do a side-
by-side taste test and take “before and after” photos. Is there room
for improvement? Check out our troubleshooting tips, make some
THE FOOD
tweaks, and test again.Troubleshooting
HOW TO IMPROVE YOUR DELIVERED ITEMS:
1 Change the Packaging
Did things spill, get soggy, or cool off? Consider alternative
packaging arrangements, like changing the material you’re using
or cutting steam vents, all of which we’ll get into in the next
section.
2 Tweak the Recipe
Some menu items that are a favorite in-house may not shine
after delivery, but can be adjusted to travel well. For example,
a perfectly prepared medium-rare steak will continue to cook
in transit due to its own residual heat, arriving overdone. With a
slight tweak, you can send out a delivery-friendly steak sandwich
instead. Similarly, retool a breakfast platter to become a breakfast
burrito stuffed with eggs, bacon, and hash browns.
3 Remove the Item From Your Delivery Menu
In some cases, it will be clear after testing that a menu item is
really best served fresh in your dining room. Having some items
exclusive to in-house dining will keep your delivery menu lean
while giving loyal customers a delicious reason to come visit you
in person.Food Costs
32
TAKE CHARGE OF YOUR PROFIT MARGINS
Do you know the true cost of each item on your menu?
What about how it stacks up against your competition?
Optimizing your food costs could help boost your margins.
ASSESSING YOUR FOOD COST PERCENTAGE
A standard approach to menu pricing is to determine the food cost
percentage of each item.
Step one: Add up the raw food cost of every ingredient in a recipe
(down to the salt, pepper, and olive oil).
Step two: Divide that recipe cost by the number of servings it makes,
and divide that per-serving cost by your sale price. That’s your food
cost percentage.
If your price results in a food cost percentage of 40%+, it’s too
expensive for you to offer at that price.
If your price leaves you under 25%, then you’re likely underpricing
your item and leaving money on the table.
Tip: It’s vital that your portion sizes are consistent, both to
keep customers happy and to keep your food costs under
control. Train your staff to be consistent with the use of
measuring tools to keep true to your recipes and your budget.
THE FOODIncreasing Your Margins
Found a few dishes that aren’t meeting your food cost goals?
Here are some options:
Is an item’s price at the low end (under 25%) of the food cost
percentage range? Consider raising it’s price if your customers
will accept it.
Is an item’s food cost at the high end (over 40%)? Research your
competition and your market to see if there’s room for you to
raise its prices. If not, you may need to cut this item from your
delivery menu or redesign it.
Try replacing cheaper, preparation-heavy ingredients with more
expensive but pre-portioned ones. Your ingredient costs may
appear to go up, but you’ll save on labor and potentially on food
waste, too.
Reduce portion sizes while keeping prices unchanged.
Negotiate lower costs with your vendors.
Swap out premium ingredients for lower-cost alternatives that
won’t eat into the quality of your dish.34
A LITTLE MORE ON PORTION SIZES
The delivery consumer has different needs than the in-house
diner. They may be sharing with family, planning to order enough
for leftovers, or even combining your food with something they’re
cooking up at home. Assess your portions for the delivery context.
For example:
If it’s an appetizer that’s likely to be shared, offer it in even
portions, rather than odd.
Offer two sizes of a dish—like “regular” and “family size.”
Does your food make amazing leftovers? Consider microwave
and oven-safe packaging that makes reheating simple to entice
bigger orders.
THE FOODCreative Menu Ideas
A creative menu combined with an understanding of how delivery
customers like to order can lead to higher per-order spending. Here
are a few ideas to get you started:
Add-ons: Delivery consumers are less sensitive to price, so
provide upselling opportunities like protein add-ons, extra
toppings, sauces, side dishes, drinks, and desserts. Most third-
party delivery apps make it simple to offer these incremental add-
ons.
Versatility: What can you make with your existing ingredients to
offer more choice without making your inventory more complex? A
pizza place might offer garlic knots made with its signature dough;
an Indian restaurant already serving paneer and paratha might
start making kathi rolls; a pub might deliver both fish tacos and
fish and chips.
Meal Kits: Try offering a deconstructed version of a bestseller that
your customers can cook up at home as a meal kit. Your customer
is fed and entertained while feeling even more connected to your
brand.
Family Packs: Can you create a dinner for two or a family-style
meal? These bigger-ticket orders can encourage a high per-order
spend and simplify your customers’ ordering experience.
Tip: For the sake of simplicity in your kitchen, consider sticking
with an all-day menu. It means fewer ingredients, fewer
packaging requirements, and simpler training for your cooking
staff. If you’re famous for your lunch specials and you want to
bring that to a delivery context, just be sure to cost out each
item so you know you’re meeting your margins.36 THE FOOD
Packaging Your packaging is so much more than a box to get your meals from A to B. It’s a way to extend your hospitality into your customers’ homes. Plus, beautiful packaging can encourage repeat sales, with 72% of Americans saying package design in general influences their purchasing decisions (Ipsos). And it looks great on social media. Here’s how to make the most of your packaging, from choosing the right delivery materials for your food and troubleshooting different packaging to executing your brand.
38
QUICK TIPS
Ensure your packaging matches your values and your customers’
expectations. So, if you offer local, grass-fed beef and organic
vegetables, serve it in a compostable box— not Styrofoam.
Match your packaging to your serving size. It should be the
smallest size that comfortably fits the dish, but not so small that
things are going to spill.
Your packaging is a little billboard that has been allowed into your
THE FOOD
customers’ home. Don’t miss out on that marketing opportunity.EVALUATING PLASTIC, CARDBOARD, AND COMPOSTABLE PACKAGING OPTIONS The right packaging for your restaurant comes down to your budget, cuisine, environmental values, and customers’ expectations. Consider the following when you’re choosing your packaging materials:
40
CO
S
O
NS
PR
PLASTIC CONTAINERS
Recyclable in some areas Often not recyclable (79% of the
and may be reusable by world’s plastic is not recycled,
the consumer per Science Advances)
Some municipalities are
Lightweight, sturdy, looking to ban single-use
and leak-resistant plastics and some consumers
seek to avoid such plastics
Visually appealing More costly
May be microwave-
friendly and freezer-safe
PAPER BOXES
Lightweight May not be sturdy
Collapsible and nestable,
Can leak
requires less storage space
Lower environmental
Often no compartments
impact; biodegradable
Heat-lamp tolerant and
may be microwave-friendly
Affordable
COMPOSTABLES
Completely compostable in Customers may lack
some commercial facilities access to a compost site
Sturdy More costly
Provides some insulation Often no compartments
May be microwave-friendly
and freezer-safe
THE FOODHas menu testing revealed some issues in the way you’re packing
your food?
Here are some fixes:
PROBLEM SOLUTION
Reinforce the bottom of the
plastic or paper carryout
Stacked food fell
bag with cardboard. Wrap
over and/or spilled
spill-prone soups and
sauces in plastic wrap
Vent the boxes, or source
packaging designed with
Food became soggy venting or an open top.
Package sauces and broth
separately from the food
Line your container
Food became greasy
with corrugated paper
Line the box with wax
Paper box leaked paper or find an alternative
box with plastic coating
Switch to a more insulated
Hot food cooled container, which can include
too much or cold compostable options.
food warmed up Separate hot and cold items
as much as possible42
IN- AND ON-PACKAGE BRANDING OPPORTUNITIES
Delivery brings new opportunities to impact the customer experience.
While you can’t offer customers the same cozy ambience, friendly
welcome, and tantalizing aromas as they would get in-house, you can
set yourself apart even beyond your food.
Here are some budget-friendly ideas to brand your packaging:
Seal take-out containers with a sticker featuring your logo and
website.
Make a rubber stamp of your logo for stamping your paper take-
out bags and boxes.
Custom print some or all of your packaging with your logo. You
can even brand your packaged condiments.
Go the extra mile and source attractive, memorable, and
functional packaging.
Include thoughtfully designed printed menus or a QR code that
links to your menu. Be sure to mention your pickup specials or
other discounts.
THE FOODDELIVERING THE LITTLE EXTRAS With nearly two-thirds of Americans ordering delivery or takeout at least once a week, being memorable is key to enticing customers back for another helping. Here are some in-bag treats that REEF’s NBRHD Kitchens has executed with our partners: A Spotify playlist with QR code on a nicely designed note card. This can be a playlist they would hear in-restaurant, it could be seasonal, or it might match the meal. A printed cocktail recipe card that pairs with one of your dishes. A freebie promotion (such as a free dessert).
And here are even more creative ways to drop a bit of hospitality in 44
with a customer’s order:
Trivia questions (and answers). This is a great match if you host in-
house trivia nights or if your food pairs well with sports.
A sample size of a signature sauce or seasoning mix with
directions on using it in home cooking.
A good old-fashioned branded matchbox.
A short story of how your business or a beloved dish came to be,
especially if it has roots in your family history.
THE FOOD
A simple handwritten thank-you note.Food Photography Tantalizing food photos are the difference between a new customer finding you or swiping past you on a delivery app. According to DoorDash, including photos of your menu items increases upsell conversions by up to 19%. Stunning food styling and photography can help convert new customers in those few crucial moments when they’re scrolling a delivery app in search of tonight’s dinner. Food photography is an art and while you likely have access to a camera, you may not be able to pull off the top-notch images required to show your food at its best. We highly encourage bringing in an experienced food photographer for this task.
46 THE FOOD
WHAT’S YOUR BUDGET? Photographers’ rates vary based on their experience, your location, and the level of styling required. As with any other specialty service, do your research and request quotes from several photographers. The cost to hire a photographer can be based on the number of final, edited images you would like (this could be $50–$200 per image or more), or the photographer’s day rate (this could be $500–$600 for a newer food photographer and $1,500+ for a more experienced professional). Be sure to review the photographer’s portfolio of food work specifically. Just because they can expertly capture the romance at a wedding doesn’t mean they can make people fall in love with your burgers. Stunning food photography can be expensive, but keep the following in mind: You don’t need to photograph every dish, just your top 5–10 bestsellers and the dishes that set you apart. You can use these photos beyond your menu—like in your social media and other marketing. Some third-party delivery apps include food photography in their fees or offer it as an add-on. Make sure to only use your photos within the bounds of your photography user agreement.
48 THE FOOD
FOOD STYLING 101 While you can hire a food stylist to work with your photographer, you or your chef might prefer to take the lead on food styling. Research has found that plated food is rated as more delicious, so take time to be purposeful and creative in styling each menu item. Add appropriate garnishes with pops of color (herbs, peppers, and citrus) and texture (oil, salt flakes, fresh ground pepper) to improve the look of items that are a bit more amorphous or single-color, like some soups, stews, and noodle dishes. Create a background that aligns with your brand, whether it’s your iconic pottery dishes, branded napkins, or a textured tabletop. Create realistic expectations so the customer doesn’t feel misled. Show off your assets. If your veggie wrap comes with your signature handmade tzatziki that people crave for days after, make sure that sauce shines in the photo. Most food photos are shot from above or straight on. Discuss options with your photographer so you can style the food appropriately.
50
Everything we’ve shared so far can help you to smoothly launch
delivery from your current kitchen.
That’s not the only way to efficiently execute restaurant delivery,
though. In the next section, we’ll dig into the delivery-only kitchen
model, including how REEF’s NBRHD Kitchens can help you expand
your business with no capital investment or operational costs.
Tip: You may be tempted to use stock photography if your
menu items follow a standard formula, like sushi or wings.
While it may seem to save you money in the short run, it’s not
recommended. Customers may feel misled if what they receive
isn’t what was pictured.
THE FOODDelivery-Only Kitchens
52 DELIVERY-ONLY KITCHENS
Delivery-Only Kitchens
In the simplest terms, a delivery-only kitchen is just what it sounds
like: a restaurant that reaches customers exclusively through delivery.
With no front-of-house or waitstaff, a delivery-only kitchen (also
known as a ghost kitchen, cloud kitchen, or dark kitchen), can fulfill
more delivery orders than a brick-and-mortar location at a much
lower cost.
This model is a proven growth path for beloved local restaurants,
small chains, and global franchises alike. And with REEF’s NBRHD
Kitchens, you can get started with no capital investment.
HOW DO THEY WORK?
All delivery-only kitchens have a few things in common:
They are licensed, regulated kitchen facilities
They reach customers digitally, either through their own websites,
third-party delivery apps, or both
They don’t offer in-house dining
Beyond that, there are a few different approaches to consider based
on your business goals and available capital.54 DELIVERY-ONLY KITCHENS
Cost Comparison
While the costs of opening a restaurant vary widely based on your
location and your concept, the numbers don’t lie: a delivery-only
kitchen requires a far smaller investment than a dine-in location.
APPROXIMATE COSTS TO LAUNCH RESTAURANT, FOOD TRUCK, AND
DELIVERY-ONLY KITCHEN CONCEPTS:
VIRTUAL BRAND WITHIN EXISTING RESTAURANT
FOOD TRUCK
$70,000
COMMERCIAL KITCHEN
REEF’S NBRHD KITCHENS
BRICK AND MORTAR
$20,000
$750,000—$1.2M
$5,000
$0
Sources: USFoods.com, Los Angeles Times, ForbesDelivery-Only Kitchens
56
SHOULD YOU USE ONE?
You already know plenty about the opportunities of delivery in
general. Delivery-only kitchens? They have some perks of their
own:
Lower overhead with more accessible real estate prices, fewer
salaries, and less printed materials to replace when your menu
changes. (Of course, there’s no cost at all when you partner with
NBRHD Kitchens.)
Make your dreams happen with less investment, whether that’s
expansion or experimentation.
Lower costs can mean better margins than the industry standard
of 3%–5% in full-service restaurants and 6%–9% in fast food
(DoorDash).
Outsource delivery to another location to keep your dining room
free from disruptive pickup traffic.
Capitalize on the strength of your brand by expanding within your
hometown and beyond.
DELIVERY-ONLY KITCHENSDifferent Kitchen Models VIRTUAL BRAND Maybe you have a dine-in restaurant right now and you’ve also got an exciting new idea you would love to test. With a virtual brand (and enough room in your existing operation), you could launch right out of your current kitchen. Alternatively, turn to an innovation lab, like NBRHD Labs, where you can workshop those new ideas without overwhelming your kitchen space at no cost to you. LEASE A SHARED COMMERCIAL KITCHEN In some cities, commercial kitchen facilities—previously the realm of caterers and retail food producers—have been tweaked to suit the delivery model. Rental rates can vary widely depending on your area and you may need to buy or lease some of your own equipment. These kitchens often have common spaces, so keep in mind that you won’t have control over who else is working there and how tidy they keep the shared cooler.
58
LEASE GHOST KITCHEN SPACE
Similar to a shared commercial kitchen, ghost kitchen-specific
enterprises exist as an option to speed up the process of launching
your delivery-only restaurant. The kitchen is outfitted with basic
equipment and may include some delivery optimizations, like a POS
system that plays nicely with delivery apps.
You’re in charge of staffing and inventory, and in addition to rent, you
might pay a monthly fee. This model can work for a single location,
but because you’re in charge of staffing and inventory, expansion can
be costly and time-consuming.
THE NBRHD KITCHENS MODEL
REEF’s NBRHD Kitchens provide a turnkey licensing model to
business owners. When you partner with NBRHD Kitchens, we take
on 100% of the capital, operational, and labor costs associated with
your delivery-only kitchens—and you receive a percentage of every
single sale.
This means your brand reaches more customers in more places
without paying rent, salaries, food costs or third-party delivery app
fees. Not to mention you outsource inventory management and day-
to-day minutiae to us. REEF takes care of it all.
DELIVERY-ONLY KITCHENSNBRHD Kitchens Model
HERE’S HOW A NBRHD KITCHENS PARTNERSHIP WORKS.
1 Once we’ve determined your brand is a great fit for REEF, our
pilot project begins. We’ll typically launch your NBRHD Kitchen in
the city where you and your flagship restaurant are so you can be
closely involved.
2 You’ll work directly with our team to identify which of your menu
items are best suited to delivery, and we’ll work together to train
our skilled kitchen staff to execute your vision. When—and only
when—you’re happy with the execution, your brand will go live to
thousands of new customers across the major delivery apps.
3 During the pilot period, our kitchen staff will prepare your delivery
orders in one of our conveniently located kitchen vessels. We’ll
learn and adapt along the way to maintain a high quality and
consistent output.
4 Following a successful pilot, we’ll work together to expand to new
neighborhoods. Maybe you’d love to open up across town—or
maybe you’d like to seed a new, major city in the U.S. or Canada.60
ADDED VALUE WITH NBRHD KITCHENS
Because we do things our own way at REEF, there are some benefits in
our licensing model that we’re especially proud of:
Room to focus on what you do best: While we take on day-to-
day operation of your delivery-only kitchen, you can put your
energy wherever else you want it. Maybe that’s developing your
next big culinary idea, providing exceptional customer service for
your brand, or spending more time with your family.
Reach 70% of North America’s urban population: Our expansive
(and expanding) network can help your brand thrive as it reaches
new markets.
Efficient pickup: Our kitchen vessels are located in repurposed
parking lots, minimizing parking hassles for delivery drivers and
saving them from waiting in line with dine-in customers, all of which
mean speedier delivery times.
A true partnership: Our licensing model means that when you
succeed, we succeed, so we’ll work together to continually
achieve more.
DELIVERY-ONLY KITCHENSSuccess Story BURGERFI In early 2020, BurgerFi was serving up their natural Angus beef burgers in 120 locations across the country and looking for a way to bring more meals to more mouths in more places. Then the “better burger” brand found the perfect partnership in REEF, a fellow South Florida-born business.
62
Practice Makes Perfect
From the start it was clear that BurgerFi and delivery were a match
made in burger heaven. For ideal delivery results, though, a bit of
menu engineering was on the table. BurgerFi’s high-quality burgers,
cage-free chicken, and hand-cut fries travel well, even if there’s
some unexpected traffic along the way. But certain items, like their
onion rings, custards, and shakes, are best enjoyed in-house, so
they remain exclusive to BurgerFi’s brick-and-mortar locations. And
while delivery customers won’t be sitting at the upcycled milk jug
tables that are part of BurgerFi’s sustainability-minded dining rooms,
delivery packaging for the restaurant is eco-friendly.
More, Please
The midsize chain’s tried and tested supply chain made the
expansion to delivery practically seamless. The adoption of NBRHD
Kitchens’ prep kitchen and execution kitchen approach means timely
prep and delivery are built in. For example, BurgerFi’s addictive fries
DELIVERY-ONLY KITCHENS
are hand cut every morning in a prep kitchen, then transported to
the execution kitchen where they’re cooked to order and paired with
Cajun seasoning, done up urban style (parmesan, herbs, and garlic
aioli), or with good old salt and pepper.
BurgerFi has launched 9 NBRHD Kitchens in 3 cities throughout
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