Restaurant delivery is on the rise. People will always enjoy going to a restaurant, but today, more than ever before, the public places orders for delivery.
Third-party delivery is rushing through the restaurant industry. Restaurant business said 21 percent of consumers are increasing carryout orders with delivery orders. Among 18-34-year olds, 30 percent have replaced carryout with delivery.
Offering delivery service for many restaurants is a significant revenue generator and worth the associated risks. Below are four benefits of using third-party delivery services.
1. Minimal start-up costs
One immediate advantage of using third party delivery is the restaurant immediately gets access to “expert” delivery services. Starting an in-house delivery service requires training a delivery team, maintaining vehicles, and navigating new insurance policies. That’s a lot of associated costs.
Third-party delivery partners are ready. They bring their drivers, network, route management, communications, payroll, and labor management. Owners just need to pay the companies they will use, and the delivery companies will take care of the rest.
2. Promote the restaurant and get new customers
Third-party delivery services offer the chance for restaurants to target new customers because services are convenient and accessible. Food orders should be easy to place. When customers see that there is a third-party delivery option, they are likely to choose that restaurant over one that is not offering delivery options.
3. Fewer order mistakes
Many of the third-party delivery systems are set up for customers to customize their orders specific to their needs. It helps eliminate the human error when taking orders as your entire menu is presented to customers in an interactive and easy to use way.
4. Less headaches
Restaurants get busy. By using a delivery service, owners and staff can focus more on the patrons inside the restaurant. Owners don’t have to worry about the stress or safety of their team while out on delivery. Many third-party services have their carriers.
Mitigate risks with third-party delivery services
Restaurants need to include essential operational content in their agreements with delivery services and also adequate liability limitation language. Owners should consult their insurance agents and legal counsel to generate these agreements.
Some items to consider include, but aren’t limited too:
- Require compliance with industry standards for safe food handling. This includes temperature maintenance and procedures.
- Use a third-party delivery service that uses tracking technology to help defend against a foodborne illness claim.
- Require strong indemnification terms that provide the shift of responsibility to the third-party delivery service if any claims arise.
Restaurants need to reduce the risk of liability, always when using third-party delivery services. But risks aren’t only associated with third delivery. Restaurants need to prepare for short and long-term problems.
McGowan Program Administrators write policies made for the unique risks of restaurants. Our products/limits include:
- General Liability: $1MM/$2MM
- Liquor Liability: $1MM/$2MM
- Property: Up to $25MM TIV Available
Learn more about our products and contact us today.
