The Pros and Cons of Offering Delivery and Takeout: What to Consider Before Expanding Your Services
Over the past few years, delivery and takeout have transformed from “nice-to-have” offerings into a vital revenue stream for restaurants, cafés, and bars. Customers expect convenience, and businesses that meet those expectations often see increased sales and stronger customer loyalty. However, like any operational shift, offering delivery and takeout comes with both opportunities and challenges.
If you’re considering adding or optimizing these services, here are the main pros and cons to weigh.
The Benefits of Delivery and Takeout
1. Expanded Revenue Opportunities
Delivery and takeout open your doors to customers who may never set foot inside your restaurant. Whether they’re working late, seeking comfort food at home, or simply too busy to dine in, these guests can still support your business. Many restaurants have seen takeout and delivery account for 20-40% of their overall revenue.
2. Customer Convenience Builds Loyalty
Modern diners prize flexibility. Offering delivery and takeout meets your customers where they are, which can lead to repeat orders. By making it easy to enjoy your food off-site, you reinforce brand loyalty and increase the chances of positive reviews and word-of-mouth referrals.
3. Increased Visibility Through Apps
Third-party delivery platforms like DoorDash, Uber Eats, and Grubhub can boost your restaurant’s exposure. Even if customers don’t order right away, seeing your menu regularly helps with brand recognition.
4. More Ways to Adapt Seasonally
Outdoor dining may slow down in colder months or during inclement weather. Delivery and takeout give you another way to keep revenue flowing when your restaurant patio isn’t as busy.
The Drawbacks of Delivery and Takeout
1. Reduced Profit Margins
Third-party delivery services often take steep commissions – sometimes 20-30% per order. Even in-house delivery requires investments in drivers, insurance, and packaging. These costs can eat into profits unless carefully managed.
2. Quality Control Challenges
Your carefully plated dishes may not look or taste the same after a 20-minute car ride. Maintaining consistency outside your four walls can be tough. Packaging, travel time, and handling all affect the customer’s experience.
3. Operational Complexity
Adding delivery and takeout means adding new systems, from online ordering platforms to POS integrations. Staff may need training to handle orders alongside dine-in service, which can create stress during peak hours.
4. Customer Expectations for Speed
Diners expect quick delivery times and flawless accuracy. A single missed item or cold entrée can lead to negative reviews. Meeting those expectations requires tight systems and attention to detail.
Key Considerations Before Expanding
Evaluate Costs vs. Returns: Run the numbers on commissions, packaging, labor, and delivery logistics. Make sure margins are sustainable.
Choose the Right Model: Decide whether to rely on third-party apps, build an in-house delivery system, or use a hybrid approach.
Invest in Packaging: Quality containers that keep food hot (or cold) and travel-ready can make a huge difference in customer satisfaction.
Market Strategically: Use your delivery and takeout packaging as a marketing tool. Add flyers or branded stickers that highlight in-house specials, seasonal menu items, or patio dining experiences. This creates an opportunity to invite customers back for the full dine-in atmosphere, where they can enjoy your hospitality firsthand and explore offerings that aren’t available for takeout.
Maintain Operational Balance: Ensure that delivery and takeout don’t detract from your dine-in guests’ experience.
The Bottom Line
Delivery and takeout can be powerful revenue drivers when implemented thoughtfully, but they’re not without challenges. By weighing the pros and cons and planning strategically, you can decide whether expanding these services fits your business goals.
At Southern Patio Enclosures, we understand that restaurants thrive when every aspect of the guest experience is designed with care – whether it’s dining on a cozy enclosed patio or enjoying a meal from the comfort of home. If you’re looking to optimize your outdoor dining space with commercial manual or motorized patio enclosures alongside your takeout and delivery options, we’re here to help.
