Domino’s, the largest pizza chain restaurant in the world, has always prided itself on its in-house delivery prowess. However, the rising tide of online ordering and the success of third-party platforms left them with no choice but to embrace change. Finally, Domino's decided to tie the knot with UberEats, allowing customers to order their favorite pizzas through this popular app.
For years, Domino's held out on partnering with third-party delivery apps, citing concerns over maintaining their high-quality standards and dealing with (you guessed it) fees, fees, and MORE FEES! You may remember back in 2021 when the apps sued NYC over fee limits. After restaurant owners complained that they were paying fees as high as 30% the council finally passed a permanent fee cap at 15% per order and all other fees were capped at 5% per order except for transaction fees. The New York City Council will review the cap every two years, so I'll save this topic for another time.
While competitors like Pizza Hut and Papa John's had already hopped on the third-party delivery bandwagon, Domino's stood firm in their dedication to in-house operations. However, as the digital marketplace continued to expand, Domino's had to adapt to survive, as CEO Russel Weiner aptly put it:
“We are the leader in the delivery and carryout pizza marketplaces in the U.S. In addition, Domino’s sells more food on its digital platform than any pizza company in America. Now that aggregators are at scale, the next logical marketplace for us to enter is order aggregation.”
Domino’s collaboration with UberEats is quite significant. The chain and it's operators aim to generate a billion dollars in new sales by listing its menus on Uber's app. This just shows how big of a role technology is playing in shaping the future of the food industry.
That being said operators shouldn't, or should I say CAN NOT, solely rely on third-party to optimize their delivery. It's simply silly considering the competitive landscape and the tools that are available to operators. When using the right delivery technology, such as Branded's partner Vromo, more efficient delivery operations coupled with discounted delivery rates through third-party fleets, operators will reduce delivery times by up to 30% and drive down delivery costs by up to 24%!
Vromo: Delivering Success at Your Doorstep
Vromo is a trailblazer in last mile restaurant food delivery software. According to their recently released case study, "4 Best Practices for Building an Efficient Delivery Process," 34% of restaurants' revenue comes from their online ordering. Also, 60% of American consumers order takeout or delivery at least once a week.
Here are some advantages to investing in delivery software:
- Increased Reach: By leveraging technology, restaurants can expand their reach to more customers, driving growth and revenue.
- Improved Customer Experience: Real-time tracking, instant order confirmation, and seamless payment processing create a delightful experience for hungry customers.
- Reduced Costs: Eliminating the need for third-party delivery companies translates to significant cost savings for restaurants.
- Enhanced Marketing Capabilities: With access to valuable customer data, restaurants can tailor marketing efforts to boost loyalty and sales.
- Increased Operational Efficiency: Streamlined operations mean faster deliveries, fewer errors, and happier customers.ware can help restaurant streamline operations and reduce errors
As the food industry evolves, technology will remain the driving force behind its transformation. Domino's decision to partner with UberEats and Vromo's innovative delivery management software demonstrate how embracing change is essential for success. The era of third-party platforms and efficient delivery solutions is here, and it's up to restaurants to seize the opportunity to satisfy their hungry customers.
To learn more about the four steps to building an efficient delivery process CLICK HERE!