Restaurants seeing less delivery, more pick-up orders
Posted: June 6th, 2023, 4:48 pm
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.
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.