Restaurants seeing less delivery, more pick-up orders

[Brian Lutz]

https://www.businessinsider.com/deliver ... der-2023-6

Several restaurants are reporting a decline in delivery orders and corresponding increases in pick-up (and in some cases dine-in) orders as consumers seem to be getting tired of the high delivery fees, and are also being incentivized by loyalty programs and other discounts to order directly from the restaurant's website rather than through a delivery service like Doordash or Uber Eats. Probably the most obvious example of this is the various "carryout special" items at the national pizza chains like Pizza Hut, Domino's and Papa John's, but other restaurants seem to be doing similar promotions now, and with the markups that the delivery services put on even pickup orders it becomes advantageous to just order directly, which generally has higher margins for the restaurants (the article contains an example of the price differences between ordering directly and ordering off Grubhub and Doordash for an item at Pizzeria Uno.)

I know in the past I've gotten what seems like rather aggressive coupons like $10 off a $25 delivery order on Uber Eats, but every time I've ever tried setting up an order even with the "big" discount it seems like the cost of ordering delivery always ends up being significantly higher than just going to the restaurant and picking it up myself, which leads me to just drive over and order myself. I know that Doordash will mark up the regular prices at some restaurants as much as 40%, which makes even ordering for pickup on those platforms significantly more expensive. In general that means the only time I use one of these services is if I have a gift card, and even then mostly for pickup orders.

[mbz321]

I know in the past I've gotten what seems like rather aggressive coupons like $10 off a $25 delivery order on Uber Eats, but every time I've ever tried setting up an order even with the "big" discount it seems like the cost of ordering delivery always ends up being significantly higher than just going to the restaurant and picking it up myself, which leads me to just drive over and order myself.

Exactly THIS. And UberEats must be hurting big time as they are consistently flooding me with emails and app popups of various 'offers' (I'm almost at the point of unsubscribing, but I always hold out hope for a pick-up coupon), but like you said, if you actually do the math you aren't saving much of anything with the promos, unless you really don't want to leave your house. Dining out these days is expensive enough as it is.

[storewanderer]

I know in the past I've gotten what seems like rather aggressive coupons like $10 off a $25 delivery order on Uber Eats, but every time I've ever tried setting up an order even with the "big" discount it seems like the cost of ordering delivery always ends up being significantly higher than just going to the restaurant and picking it up myself, which leads me to just drive over and order myself.

Exactly THIS. And UberEats must be hurting big time as they are consistently flooding me with emails and app popups of various 'offers' (I'm almost at the point of unsubscribing, but I always hold out hope for a pick-up coupon), but like you said, if you actually do the math you aren't saving much of anything with the promos, unless you really don't want to leave your house. Dining out these days is expensive enough as it is.

The other problem these services are having is more and more trouble getting drivers willing to actually pick up the orders. Also as prices go up tips go down which is a further problem for the drivers given how little they are paid to pick these orders up, the only way it is possibly worthwhile is with the tip.

I am starting to think some of these services aren't long for this world.

They take as much of 30% fee out of the cost, some restaurants are also starting to realize these services are no longer making them much money.

They are also trying to get promotions going with some chains where the delivery fees are waived to the customer (but the customer still pays the inflated item pricing).

I see various reasons why these services may make sense in certain instances (sick, no transportation, so buried in work you can't leave your desk, understaffed places you can't actually leave from to buy food, places with only one employee on shift who can't leave to buy food, etc.) but generally speaking for everyday purposes people should be able to go pick up their own food in my opinion.

[cjd]

I wonder how long some of these orders sit before they’re picked up. I’ve been to places in the past where there are numerous orders on the shelves.

The shelves are not a heated surface or have heat lamps so the orders could be cold by the time you receive them.

I’ve noticed grocery stores often have coolers and warmer cabinets up front I assume for pickup orders. Restaurants could do this too I guess but space and expenses make it unlikely I guess.

[storewanderer]

I wonder how long some of these orders sit before they’re picked up. I’ve been to places in the past where there are numerous orders on the shelves.

The shelves are not a heated surface or have heat lamps so the orders could be cold by the time you receive them.

I’ve noticed grocery stores often have coolers and warmer cabinets up front I assume for pickup orders. Restaurants could do this too I guess but space and expenses make it unlikely I guess.

Some places back when orders were left behind the counter did make an effort to keep them under a warmer or heat lamp or something. This wasn't any procedure I saw consistently at any one chain but location or shift level decisions where an employee would keep these orders under a heat lamp until they get picked up.

I do wonder when health departments may come out and tell these restaurants that the items need to be kept at proper hot or cold holding temperature until picked up.

I too have seen many orders sitting for many hours never picked up. This has been going on for years; it started with Starbucks.