Curbside Pickup vs. Delivery: Which One is More Profitable for Restaurants?

TLDR

The way restaurants serve their customers has evolved significantly in recent years. While third-party delivery platforms like Uber Eats, DoorDash, and Grubhub provide convenience, they come at a steep cost for restaurants. These services impose commission fees ranging from 20% to 30%, which deeply cut into profit margins and make it challenging for restaurants to maintain control over pricing, customer relationships, and service quality.

As a result, many restaurants are shifting their focus toward curbside pickup—a model that allows them to serve off-premise customers without the extra costs and complexities of third-party delivery. By enabling customers to place orders online and pick them up without leaving their cars, curbside pickup offers convenience with profitability. Understanding these factors will better equip you to make informed decisions about your restaurant's service offerings and enhance your bottom line.

‍

The Rise of Curbside Pickup for Restaurants

A staggering 63% of quick-service restaurants (QSRs) now offer curbside pickup, solidifying its position as a crucial service in the industry. This surge in popularity isn't without reason – curbside pickup has become the go-to choice for busy off-premise customers seeking convenience without compromising on quality.

Convenience Meets Efficiency

Curbside pickup for restaurants offers a unique blend of speed and ease, allowing customers to enjoy their favorite meals without the need to leave their vehicles. This contactless method caters to modern consumers' on-the-go lifestyles and provides a safe alternative during times of health concerns.

Cost-Effective Solution

Implementing curbside pickup is a win-win situation for restaurant owners. It allows them to offer quick and convenient takeout at no extra cost, effectively expanding their service options without the overhead associated with delivery services and personnel. By leveraging existing staff and resources, they can increase their revenue streams while maintaining control over the entire ordering process.

‍

The Cost-Benefit Analysis: Curbside Pickup vs. Delivery

Financial Implications

When comparing curbside pickup vs delivery, restaurants face a stark contrast in costs. Online delivery typically costs $10.67 more or 77% higher than curbside pickup, making the latter a more cost-effective option for restaurants. With curbside pickup, establishments require fewer staff and avoid expenses associated with delivery vehicles and fuel.

Operational Control and Efficiency

Curbside pickup allows restaurants to maintain full control over the ordering process, menu offerings, and customer service. This leads to better operational efficiency, responsiveness, and ultimately higher profit margins. With curbside pickup, fewer order mix-ups or delays occur compared to delivery services. Direct relationships with customers are maintained, opening opportunities for loyalty rewards and personalized service. Additionally, the best curbside pickup apps for restaurants can streamline operations, making it easier to manage curbside pickup orders efficiently.

Customer Convenience and Safety

Setting up curbside pickup at a restaurant offers customers a convenient way to get their food without in-restaurant dining. This method also promotes safety and hygiene through contactless transactions, reducing the risk of food contamination. Interestingly, households with more vehicles tend to spend more on grocery delivery and pickup services, highlighting the growing popularity of these options.

A More Sustainable Approach

Curbside pickup is not only good for the wallet but also for the environment. It eliminates the need for extra packaging and reduces carbon emissions from delivery drivers. Furthermore, curbside pickup minimizes food waste by allowing customers to collect their orders promptly, ensuring freshness and quality. Overall, curbside pickup offers a greener alternative to traditional delivery methods, aligning with eco-friendly practices and reducing the environmental impact of the food service industry.

Nearly 50% of Gen Z are willing to try out a new restaurant if curbside pickup is an option. - Restolabs

‍Optimizing Curbside Pickup Orders with a Mobile Ordering App

The key to making curbside pickup efficient and profitable is having a mobile ordering system that makes the process smooth for both customers and staff. Here's how Per Diem makes it seamless for restaurants:

Streamlining the Ordering Process

Mobile apps streamline the ordering process for curbside pickup, providing customers with a user-friendly interface to browse menus, customize orders, and schedule pickups effortlessly. With Per Diem, customers can conveniently place their orders with just a few taps, select their desired pickup time, and pay in advance with Apple Pay. This eliminates the need for lengthy phone calls and reduces the likelihood of order mistakes. Moreover, the app's integration with systems like Square POS further optimizes order management, ensuring a seamless flow from order placement to pickup.

Enhancing the Pickup Experience

Real-time updates are crucial for a smooth curbside pickup experience. Your app can send push notifications to customers, informing them when their order is ready for pickup. These notifications can also guide customers on where to park and provide instructions on how to alert staff upon arrival, reducing wait times and minimizing confusion. Additionally, offering direct communication via an in-app call feature allows customers to seamlessly notify the restaurant when they arrive, ensuring a prompt and efficient curbside pickup process.

By investing in the best curbside pickup app for restaurants, you can efficiently manage curbside pickup orders even if you have multiple locations, improve customer satisfaction, and ultimately boost your bottom line. Per Diem offers a streamlined solution that makes setting up curbside pickup for your restaurant simple and hassle-free.

‍

Final Thoughts

So, what’s the best way for your restaurant to serve off-premise customers while retaining more of your hard-earned revenue? The numbers speak for themselves—curbside pickup offers higher profit margins, lower costs, and greater control over the customer experience compared to third-party delivery.

If you’re considering expanding or enhancing your off-premise dining options, ask yourself: Do you want to rely on costly third-party services, or would you prefer to take control and keep more of your profits? With the right tools, you can provide a seamless curbside experience that’s efficient, convenient, and designed to drive customer loyalty. The future of restaurant ordering is all about convenience without compromise, and curbside pickup delivers exactly that.

Ready to make the switch? Let Per Diem assist you in setting up curbside pickup with ease. Sign up today and start maximizing your restaurant’s profitability.

‍