Top 3 Considerations When Picking A Food Delivery Platform

Food delivery platforms have become a mainstay for a restaurant's long-term revenue stream, but are they a good idea? While these are great ways to gain exposure and build brand awareness, it is important to tread carefully. Not all food platforms are built alike, and it is important to ask questions early on in the process to help find the right fit for your business and its bottom line.

Here are the top three considerations to keep in mind during the evaluation process:

1) What is the commission structure?

The first question you need to ask is about the commission structure. Food delivery platforms offer you a large customer base, but it also comes at an equally high cost. Ideally, you should choose a platform that takes no commission, or very little. It might seem like a good idea to pay high commissions initially, but it is not a sustainable model in the long run.

2) How often do they raise costs?

Delivery platforms are notorious for raising prices -- both for restaurants and the customers. If you are already paying exorbitant commissions, is there a risk of this being raised? However, if customers are the ones being charged extra costs, how do they ensure retention? Before paying to join these platforms, really think about your long-term budget and how this solution fits into it.

3) What is the competition like?

The other large risk with popular food delivery platforms is the number of competitors, as well as the platform's willingness to promote everyone. While there is nothing wrong about inclusive, how will they support your business? How many other businesses are you going to compete with, and are they giving you any incentives to join?

These are just some of the questions to ask during the process in order to facilitate a dialogue. Food delivery platforms are a fast way to gain customers, but the cost of acquisition is sometimes much higher than the return. Platforms that are zero-commission are generally the best way to get online and start building a customer base, without draining your resources.

If you are looking for a commission-free way to have food delivered, and build a long-term loyal customer base, we can help. To learn more, please contact us today.