The new economic and social conditions posed by COVID-19 mean many restaurants and cafes have turned to delivery service options to keep their doors open. This move has only benefited food delivery companies but unfortunately, hasn’t been as beneficial for restaurants and cafes. This is because food delivery apps can take up to 35% of an orders sale price in commission.
Cheaper fast food stores often operate at a higher profit margin and can absorb the cost of delivery services. However more expensive high-end restaurants are already operating at a slimmer profit margin. Moving to a delivery app may not make sense for many restaurants.
Restaurants Provide Food Delivery Service due to COVID-19
While the hospitality industry used to be plagued with too few experienced chefs, baristas and bartenders, it now has the opposite problem. Scores of chefs, waiters and other experienced staff are now unemployed.
As an example, 70 out of 73 Merivale establishments have been shut down across Australia.
Owner Justin Hemmes said he was, “Completely heartbroken that this is happening but remain focused on the light at the end of the tunnel. My absolute top priority is supporting our staff”. Hemmes is investigating takeaway and delivery service options.
Some restaurants are using the latest insurance technology to secure great savings for their businesses in these economically challenging times. For instance, some cafes and restaurants are taking this time to re-evaluate their fixed costs like public liability insurance. BizCover is a great tool to compare public liability insurance quotes online. BizCover allows restauranteurs to compare insurance products from multiple insurers. Quotes are delivered to your inbox within minutes. Even better, BizCover has a Price Promise.
Online booking platform TheFork saw its cash flow dry up overnight as restaurants were shuttered across the country.
Adaptable businesses are finding ways to survive and even grow their profits in these uncertain times. In keeping with this, TheFork has brought out a search function allowing you to find restaurants near you that are offering pickup or delivery. Unlike its previous business model facilitating bookings, TheFork is not taking a commission for this service. They are aiming to keep their restaurant partners and usual clients on board for when business returns to normal. Famous restaurant Lucio’s in Paddington NSW, has involved itself.
Some high-end restaurants are offering discounts and incentives through their preferred delivery platform. For instance, Lucio’s is offering a 25% discount included with home delivery in Sydney’s Eastern Suburbs. They are also offering a unique wine deal. Customers who spend over $100 are offered top shelf wines at half price.
Owner Lucio Galletto emailed his patrons saying, “Our core staff remain employed with us. Our chefs are preparing and cooking your food as usual, while our waitstaff will be now manning the phones, organizing your pickups and delivering your food.”
TheFork Australia Country Manager Gary Burrows said, “Our goal is to help ensure business continuity for our restaurant partners, while also allowing our diners to continue supporting their local eateries. Our support is with the community of restaurants and cafes that make up a vital part of our Australian culture”.
State governments are also being flexible. In NSW small bars are allowed to deliver cocktails to people’s homes. In Adelaide, wine and spirits brand Unico is offering a digital daily happy hour across its various brands. In these happy hours, viewers are taught how to make unique cocktails. There is also a live Q and A.