A man and woman dressed in white t-shirts and brown aprons stand at a light wooden counter top in an all white kitchen. The woman - to the right - is holding a pen and leaning in towards a laptop on the counter. There is a selection of food and drink items in glass bottles and jars to the right of the laptop. The man - to the left - is placing a white food container with a plastic lid into a white paper bag. There are 2 further paper bags on a shelf in the background and there is another in front of the bag the man is filling.
DIY delivery can make your restaurant 30% more profitable

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Restaurant chains that choose to manage their own deliveries can increase their profitability by as much as 30% per food order. This is major and could, in fact, be the difference between remaining a viable business and going bust.

We recognise and applaud the success of marketplace apps for transforming the food-ordering and delivery sector. Never more so than during the depths of the global pandemic where food establishments had to completly pivot and transform their dine-in experience to an off-premise, delivery only method in order to keep their restaurant business afloat. 

Regardless, some restaurants are paying a high price, and this may not be sustainable in the medium or long term.

Our CCO Alan Hickey says, “There’s no doubt that marketplace apps have given consumers greater choice in the way they can order takeaway food – and consumers have responded enthusiastically because they like the convenience of ordering their favourite food on their smartphones and getting it delivered right to their doors.

“While this suits some business models, such as established fast-food chains, smaller restaurant chains are paying a heavy price because the cost of being listed on marketplace apps is eating into their ability to be profitable. Typically, this can be 30% of the cost of an order.”

VROMO is a ‘best of both worlds’ solution for restaurants looking to take back some control over their delivery operations. First and foremost, the software allows restaurants to manage their own deliveries, but we also work with lots of marketplace apps and local delivery service providers to enable overflow delivery capacity when the restaurant delivery team is stretched to the max during busy periods such as the Friday night takeaway.

VROMO is beneficial in affording restaurants the opportunity to manage all of their deliveries while saving them up to almost half of the marketplace fee.

There are two demonstrable benefits to VROMO for restaurants. The first, as mentioned, is to retain more profitability on each food order. Restaurants should welcome the marketplace app orders at 15% commission, but paying an additional 15% for their delivery service is a very expensive alternative to using your own restaurant delivery team.

The second and more lucrative benefit is that restaurants retain ownership over their customer bases. In the case of marketplace apps, they own the customers because they are the ones that have made huge investments to acquire and retain users of their apps. Because the likes of Uber Eats own the customer base, they can then influence the user experience to maximize their profitability through incentives and premium listings – which, of course, the food establishment ultimately pays a high price for.

VROMO puts the control in the hands of restaurants themselves, as our software-as-a-service (SaaS) solution can be integrated into a restaurant’s point-of-sale system for convenience.

This enables the restaurant to track the live progress of its entire delivery fleet and make real-time decisions, as the system continuously sends location updates to the VROMO admin portal. And drivers can download the VROMO app to receive job offers, instructions and updates on the progress of jobs.

VROMO also enables restaurants to use the data to identify patterns such as the peak delivery times and frequencies of deliveries in geographic areas – which allows restaurants to plan the shift patterns of their drivers.

And VROMO isn’t just a tool to manage deliveries – it’s also a powerful marketing portal.

Restaurants can use the data to build strong brand loyalty with their customers through better, more-responsive communication. They can offer promotions that increase the average order value, run retention promotions or incentivize more orders from specific areas.

The technology is available for restaurants to stop abdicating responsibility to marketplace apps – where they have little control and see their profit margins eroded.

Restaurants can now take back control and build their own delivery offerings as a solid part of their growth as they move forward in a post-Covid world.

 

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27a, George’s Court,
Georges Street,
Co. Waterford
Ireland

19 W 34th Street
Suite 1018
New York NY, 10001, United States

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Locations

27a, Georges Court,
Georges Street,
Co. Waterford
Ireland

19 W 34th Street
Suite 1018
New York NY, 10001, United States