Selling Through Food Delivery Apps or Making Deliveries with Your Own Motorcycles…Which Offers Better Income and Costs?
These days, restaurants that don’t offer delivery services are losing more than opportunities to generate revenue. They are also losing opportunities to competitors offering delivery services. Therefore, these two opportunities are a big issue. In particular, delivery services are becoming more and more popular among consumers, even outside of Bangkok. Provincial areas are also experiencing high demands for food delivery services. Therefore, in order to avoid missing out on opportunities to boost sales and to avoid losing market shares to other restaurants, food delivery services are a must.
With that said, entrepreneurs might wonder which is better…food delivery apps or personally making deliveries using motorcycles. We have some information to facilitate your decision.
App Food Delivery Food Delivery Apps
The perks for restaurants that partner with food delivery apps are numerous such as the following:
- Restaurants can immediately boost sales. While some apps are free and others involve some expenses, they provide a viable option for revenue growth.
- Food delivery apps can be used as channels for promoting restaurants and menu items. Famous food delivery apps are used by tens of millions of people, so your restaurants will have the opportunity to increase accessibility and awareness. It will be possible to expand your customer base without incurring additional cost or incurring less operating cost than ordinary marketing expenses.
- Restaurants will be able to offer food delivery services without employing new employees, so no employee salary costs will be involved, and restaurant services will make better impressions on customers.
- It is possible to offer promotions in partnership with food delivery apps to boost sales or raise restaurant awareness. Doing this is much more convenient, comfortable and convenient because the restaurants will have partners who help make promotional offers.
At present, four food delivery apps are popular. Although the terms and conditions involved in partnering with each food delivery app vary depending on the app, it is easy to partner with any app. All you have to do is tap you fingers at any of the four apps as follows:
Wongnai x LINE MAN Delivery
The great thing about registering for this app’s services is that no expenses are involved in either registration or service provision. The restaurant will not be deducted any percentage and will be able to immediately tell customers after the restaurant is registered that they can order food through the LINE Man app. As customers search for your restaurant in the app and then order food, LINE Man employee will call your restaurant to ask about food prices before applying delivery fees and then sending the order to customers for confirmation. Once an order is confirmed, LINE Man will pick up the food at your restaurant and pay you. The restaurant will not have to pay any service fees.
You can register for the app’s services here: http://business.wongnai.com/restaurant-management-system/
Grab Food
GrabFood collects monthly service fees as a percentage of sales made only through GrabFood and does not collect any initial registration fees. GrabFood will increment the prices of some food items, so the prices shown at the restaurant and in the app might be different.
You can register for the app’s services here: https://www.grab.com/th/merchant/food/
Get Food
It is free to register with this app. The app will add delivery fees based on distance, just like LINE Man, rather than collect monthly percentages from the restaurant.
You can register for the app’s services here: https://www.getthailand.com/
Food Panda
The commission fee for this app is 35% of the total value of all orders made through Food Panda. For orders made by credit cards, a 3% fee is exempted. Restaurants that use Food Panda’s services have to pay VAT event if they are not restaurants registered for VAT. This is because Food Panda is a company registered for VAT. The VAT is calculated based on the commission fees you have to pay Food Panda (For example, if a customer makes a 100-baht order (excluding VAT), Food Panda’s share will be 35 baht + 2.45 baht VAT, while the restaurant’s share will be 62.55 baht.
You can register for the app’s services here: https://www.foodpanda.co.th/th/?r=1
Making Deliveries with Your Own Motorcycles
If your restaurant prioritizes customers in the vicinity of the restaurant such as when the restaurant is located at the entrance to a village and the main customers are the villagers, making deliveries with your motorcycles is an option. However, there are many limitations to consider. These include the costs for hiring delivery people, fuel, depreciation, time, safety and damage liability. In addition, customers might have to wait a long time if many orders are delivered at the same time, as the last customers will receive their orders later than usual; not only that, food quality might be affected.
And if you are open to take orders without boundaries, you will have to be particularly careful about hiring enough delivery staff, opportunities lost for additional orders and risks for customers going out to buy on their own.
Based on all of the information we mentioned above, we hope entrepreneurs will be able to decide on which type of delivery service is best for their restaurants while meeting customer needs, increasing sales channels and expanding the customer basees through deliveries.
