When getting food to your customer is of the utmost importance, a loss of delivery drivers can really impact your restaurant. And while rehiring staff is a tried-and-true method of recovery, the increased cost of labor can really put pressure on your bottom line.
A study by RAIL Media on restaurant staff turnover charts the overall cost to an average business at $146,000 annually. The study also cites the Center for Hospitality Research – who claims that the cost per employee lost is above $5,000. That’s a hefty chunk of change!
We live in a changing world, and as a business owner, you need to change along with it. If fighting an uphill battle is too costly, why not look for a path around the mountain instead? You might have some options already.
Prioritize Pickup over Delivery
The first, and most obvious solution could be to refocus your efforts away from deliveries and focus on promoting takeout orders instead. Domino’s tried this when they faced this same problem – and though they still took a financial hit, they’re still going strong.
Of course, a band-aid solution doesn’t fix the underlying issues, and while it didn’t seem like Domino’s regretted their choice, you may wish to find a sustainable solution for preserving delivery as an important contributor to growing your bottom line.
Improve Order Value by Increasing Average Basket Size
Another option could be to make each order count. If you can’t fulfill as many orders, then you can upsell the remaining ones to pick up the slack. This solution can be challenging to do on your own, but if done well, can make up for lower volumes.
There are a few methods you can use to encourage big orders, from menu changes to rewards programs. For starters, you can create more offerings and advertisements that cater to large crowds, family dinners, or parties. It’s a bigger order that carries more food and a higher price tag, but demands only a single delivery run.
A loyalty program, especially one that can offer a targeted approach to your demographic, is often quite effective in increasing order value. This is something that you’ll likely have to research yourself, but don’t be afraid to piggyback off of the work of others! You’re not the only one dealing with this problem, so you’re not the only one finding solutions.
Delivery as a Service
But there is one final option. If running your own delivery fleet just feels like a battle you can’t win, there are digital delivery platforms out there that handle varying aspects of the delivery process. Where you want to be is a place where you’re not just surviving with delivery anymore; you’re thriving.
About Smooth Commerce
Smooth Commerce is an all-in-one digital commerce and customer marketing platform for restaurants that combines online and mobile ordering, delivery, loyalty, and powerful marketing tools to help you grow your business, while giving you access to your customer data to help grow your restaurant.
If you would like to learn more or talk to a representative from Smooth Commerce about how our platform can help you meet your loyalty goals, contact us at email@example.com.