The most attractive choice for restaurants nowadays is the delivery system, since people usually prefer using a delivery system rather than picking up the food at the restaurants.
Donut shops are the same. While the customers who pick up the food directly from the donut shops were reduced to ⅓ of the people who came to the donut shops before the coronavirus, donut shops had to find new ways to increase their income to keep their stores open.
The most effective way to increase income is by using delivery service systems since people started using delivery systems greatly after the coronavirus outbreak. Making the store’s delivery service will be difficult as to do delivery, restaurants have to hire more people, which would be hard since people would not try to go out often because of the coronavirus.
However, various third-party delivery systems can deliver the foods to the customers for the stores. In these third party delivery systems, four systems are most known by the people. They are “Grubhub,” “Uber eats,” “Doordash,” and “Postmates.”
Grubhub’s sales in the food delivery system had kept a 30% mark from 2018 to now, which means that Grubhub’s sales in the food delivery system was 30% from the total income of the food delivery system. And this means that Grubhub’s income had increased from 2018, since starting from 2018, the total sales of the food delivery system increased by 100% in 2020.
While Grubhub kept their sales power by steadily increasing their income, Uber eats had increased to 20% from 12% in 2018, Doordash had the most dramatic growth, about 10% in 2018 and 39% in 2020, and Postmates kept their 10% mark of the food delivery system.
If only the sales price of the delivery systems is shown, the systems with the highest sales are preferable as it will make more people recognize donut shops. However, we also have to consider how much the delivery system takes when the customer buys the food.
The delivery systems usually get paid in the form of commission fees. One delivery system, Grubhub, takes 15% to 20% of the store’s income for only uploading the stores in their apps, which is possible when the store provides the delivery system. However, if the store wants a delivery system, Grubhub asks 10% more. And if the store wants the Grubhub app to place their store in the front pages, which will make their store exposed more often to customers, they have to pay 20% to 30% for commission fees.
Grubhub gives the store the money after taking away their fees, and stores can choose when they want to receive the money. They can choose to get paid once a week or once a month. And one thing unique about Grubhub is that they give automatic phone calls about the order a few minutes after the order message has been sent to stores via email, fax, or the app message, unlike other delivery systems that only send order messages.
While Grubhub’s commission fees change depending on the place of the stores, Uber eats has a more stable fee. Although Uber eats says that the commission fee changes according to the location of the store, if it is not a special case, uber usually takes about 30% for delivery order and 15% for a pickup order. Therefore, stores with their delivery system can join Uber eats with the pickup order, which will make the stores known to people. And like the Grubhub, Uber eats provides choices to the restaurants if they want to be paid once a week or once a month.
Doordash, similar to the Uber eats, takes 30% as their commission fee, according to CNBC, and they send the money customers paid to restaurants once a week after subtracting fees Doordash gets.
Another delivery system, Postmates, takes 15% to 30% as their commission fee according to the location of the store. And Postmates will send direct deposits to the restaurants once a week.
Although the fees delivery systems get might seem similar, since the fees are dependent on the place of the restaurant, it is suggested to check various delivery services.
After looking at the prices and popularity of the delivery systems, I hope donut shops can find the delivery system that benefits them the most.