In today’s restaurant industry, delivery services are a crucial part of revenue generation. However, the way these services charge restaurants and customers can have a significant impact on profitability and customer choices. In this post, we will break down the cost structure of third-party delivery apps that offer low or free delivery to customers and compare it to Dine Local’s model, which allows restaurants to pass the true cost of delivery to customers.
Discounting is a powerful tool in a restaurant’s pricing strategy, but it’s also a double-edged sword. While discounts can drive sales, attract new customers, and increase order sizes, they can also erode margins, devalue your brand, and train customers to expect lower prices. The key is knowing when and how to use discounts strategically to maximize benefits while minimizing risks. It’s almost Shakespearean: To Discount or Not To Discount… THAT is the question!