The Ultimate Guide to Growing Your Food Delivery Business NovemberDECEMBER 2020 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 DELIVERY Here 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: D O N’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 instead Delivery 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. 18 DIYing Delivery Of course, the option exists to run delivery yourself if you want more control of the entire process and to avoid those commission fees.