Is Third-Party Delivery Worth it?  We/They Did the Math for us.

Is in-house self-delivery worth it? Read about the key metrics and how to calculate the true cost of ownership in the restaurant delivery space.


The question my team has been asking me is "Show me the Beef"?  Dated right, well basically my wife and business partner have been asking me is "native delivery worth it?" 

In other words, if you do the math does it make sense to delivery pizzas yourself or should you cave and let third-party delivery take over the delivery aspect of your pizzeria?

Finally, I think I have uncovered a treasure trove of information that I would like to share in my first blog post,  WOOT WOOT!

As the owner of Townies Pizzeria I joined the Restaurant Technology Network (RTN) and started reading their information and it was quite good.  You see I believe i can solve all the problems in my restaurant with a technology solution.  So I have been looking for a tool to help me determine a total cost of ownership (TCO) with relation to native delivery versus third-party delivery, and voila RTN has compiled and published several tools to help us with this.
After reviewing the eBook and opening the spreadsheet it actually is much closer on the money side than I imagined.  In fact it looks like I am losing money.
 
I was thinking it would be a bigger savings to bring delivery back to the restaurant than outsourcing part or all of the delivery to a third party.  Here are my results.
 

Screen Shot 2021-08-31 at 11.39.25 PM

Screen Shot 2021-08-31 at 11.40.48 PM

So have I been wrong this whole entire time?  I mean my entire theory is shot if Iook at these number.  My biggest differentiator is the monthly fixed cost of $800.00 which I added for my "hired Non-Owned" auto insurance policy of $10k annual premium.

So on the surface is looks like it is no brainer, right?  Why go through the hassle of managing drivers, scheduling, etc... if you are not going to make any money at this.

Truly, I am writing this at 11PM at night thinking to myself, "Have I just wasted the last 18 months pursuing the villainous third-party delivery companies when all along it is they that are my salvation to improving my bottom line?

Hmmmmmmm? more to come while i dig deeper into this.  Hopefully, I am not at the opening of the rabbit hole.

 

Similar posts

Get notified on new posts

Subscribe to our blog below