Redefining food delivery: Restaurants can look beyond third-party platforms

In a world where third-party food delivery platforms continue to dominate, an increasing number of food businesses are challenging the status quo by strategically investing in their in-house delivery systems instead. This shift goes beyond sidestepping the sky-high commissions charged by these platforms. 

It extends to developing long-term, sustainable business models that take brand integrity, customer loyalty, and profitability to heart. Hence, for restaurant owners and entrepreneurs, it is about recognising the increasing limits of traditional delivery partnerships and carefully turning logistics into a competitive advantage. 

Understanding the costs of third-party platforms

Third-party platforms from all across the world, such as Uber Eats, Foodpanda, and DoorDash, have built their own business models in such a way that they charge restaurants hefty fees—often ranging from 20% to 30% for each order a customer places using these platforms. For the average restaurant, these commissions can be crippling as margins are already slim. 

Additionally, for small, local food businesses that rely heavily on quality ingredients and unique flavours to stand out, this can mean that they have to sacrifice these unique selling points, which undermines customer loyalty and brand integrity. 

Research indicates that participating further in promotional activities carried out by these platforms can result in even higher fees ranging between 40% to 50%, squeezing profits to the point where some restaurants must cut corners, shrinking portion sizes or compromising on ingredient quality. 

Preserving brand integrity and customer loyalty

Beyond cost considerations, restaurant owners are increasingly becoming aware of some of the adverse impacts these platforms have on their brand integrity and customer loyalty. Restaurants often lose the ability to fully control the delivery experience when they partner with a third-party service. 

A US-based think tank Datassential survey found that nearly 65% of consumers blame the restaurant itself, not the delivery provider, for poor service or delayed deliveries; therefore, negative experiences can jeopardise customer loyalty, regardless of whether it is the platform or the restaurant at fault.

By opting for independent delivery, restaurants can ensure every aspect of this journey reflects their standards. From focusing on packaging to determining delivery speeds, they can align their logistics with their unique brand values. 

For instance, Ankit Sarda, owner of renowned Indian cloud kitchen Divyaanssh, shares, "Every time a customer orders from us, they are not just enjoying their favourite meal; they are supporting a local brand dedicated to delivering the best. Running our own fleet has its own challenges, as high costs are associated with vehicles and marketing; however, we see it as a strategic investment that strengthens our relationship with customers."

In-house delivery systems also offer a more personal experience. For example, the food delivery men can be trained to interact warmly with customers. Moreover, outfitting them with uniforms that feature the restaurant's logo not only enhances brand recognition but also works as a form of mobile advertising, reinforcing the brand identity every time an order is delivered. 

Data Ownership: The Game-changer for restaurant growth

One of the most overlooked advantages of independent delivery is data ownership. When restaurants rely on third-party platforms, customer data, including order preferences, is collected and controlled by the platform. This data, which could otherwise inform marketing campaigns, menu optimisation, and customer engagement, remains inaccessible to the restaurant, thus creating an information gap. 

However, with independent delivery, it is now possible to collect and analyse customer data, which is no less than a goldmine for improving both short- and long-term business decisions. This helps restaurants understand which items are more popular, when peak ordering times occur, and what feedback customers provide, as these guide them to develop effective marketing strategies that ultimately increase revenue. 

Equipped with their own data set, restaurants can build customer profiles, send targeted promotions, and introduce loyalty programs that can improve customer retention and profitability. 

Challenges and innovative solutions for in-house delivery 

While it is true that many attractive advantages can be exploited, running an independent delivery system has its challenges, particularly for smaller businesses with limited resources. Investment in a delivery fleet, staff training, and extensive marketing is substantial. Furthermore, the logistics of managing delivery routes, maintaining timely service, and ensuring food quality across distances can be complex. 

To address these issues, many restaurants are adopting technology-driven solutions. For example, local chains in Europe and North America are now using delivery management software to optimise route planning and reduce delivery times. Other businesses partner with niche logistics providers focused exclusively on food delivery, offering a middle ground between full independence and reliance on platforms.

Like there are tech solutions out there for restaurants in Bangladesh that offers user-friendly interfaces for restaurants to manage orders, track data, and communicate directly with customers, making the shift to in-house delivery more feasible. 

These platforms empower businesses by providing the tools they need to build a direct connection with customers without the middleman. In an industry that has been notoriously slow to digitise, this shift marks a new era of operational control and brand independence.
 

The future of food delivery: A blended approach?

In the coming years, we can expect the in-house delivery trend to grow, especially as technological advancements make it more accessible for smaller businesses. For some, a fully independent model may not be feasible, but hybrid models are emerging as a viable solution. 

In a hybrid model, restaurants continue to list on third-party platforms to maintain visibility but encourage customers to place direct orders through loyalty incentives, discounts, or exclusive menu items.

For consumers, this trend means more choices, higher quality, and better service. For restaurants, it is a chance to build resilience against market fluctuations and platform dependencies, ensuring that food businesses can thrive on their terms.

By challenging the third-party giants and building delivery systems tailored to their values, these businesses are taking bold steps to redefine food delivery, all while building a foundation for long-term growth and loyalty.

Kazi Farbeen, a senior at North South University, is passionate about exploring cultural narratives and societal perspectives through writing. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard