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Delivery Cost Comparisons


Updated

Option A. Providing your own Delivery Fleet

While providing your own delivery fleet does give the restaurant a certain level of control, the costs involved with setting up a delivery fleet program can be prohibitive for most restaurants. Implementing your own delivery fleet has other costs and concerns associated with it that could expose your business to thousands of dollars. Additionally, providing your own delivery fleet could also mean that necessary in-store employees and managers are pulled from the restaurant to deliver the food in a scenario where demand does not always align with labor staffing. Below are factors you will need to consider if implementing your own delivery fleet.

  • Cost of training
  • Cost of hiring
  • Cost of insurance and liability
  • Cost of labor and potential staffing inefficiencies
  • Impact to in-store operations
  • Managing schedules to ensure available drivers

Option B. Dealing Directly with DSPs

While some restaurants contact directly with DSPs, multi-location restaurants face a myriad of challenges in contracting directly with multiple providers. Additionally, because of the 10%-30% commission, direct DSPs may drive revenue but could significantly impact profitability. See below for cost example:

   $5 Order

  • At 10% commission, delivery would cost you $.50
  • At 30% commission, delivery would cost you $1.50

   $500 Order

  • At 10% commission, delivery would cost you $50
  • At 30% commission, delivery would cost you $150

As you can see, the commission amount can significantly tap into profitability.

Option C. Dispatch Delivery

See below for cost example:

   $5 Order

  • Cost would be $.50

   $500 Order

  • Cost would be $.50

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