Delivery promotions are a powerful tool to drive both new and loyal guests to your ordering page. Offering reduced delivery fees may encourage people who typically order pickup to try delivery or entice new guests to try your food.
Dashboard users can edit Delivery fee settings to create delivery promotions and offer reduced or free delivery. If a promotion requires changes to a brand or store’s partner settings, you can manage Delivery Service Providers (DSP).
When a store chooses to reduce the delivery amount, they are responsible for paying any outstanding delivery fees (not paid by the guest) when they receive their Olo invoice.
Creating a Delivery Promotion
- On the Dashboard, click Store Settings
- Go to Dispatch Settings
- Select store(s) that will participate in the promotion
- Scroll down to the Dispatch Fee section
- Update your delivery fee rules to reflect your new promotional delivery fee
- If the promotional fees should adjust based on subtotal, click + Add Tier and repeat Step 5
- Click Save at the bottom of the page to apply these new settings
When a delivery promotion ends, repeat these steps to restore the original Dispatch fee settings.
Example: Reduced Delivery Promotion
A new burger chain, Foosburgers, is planning a delivery promotion with $4.99 fees on all delivery orders. If a DSP’s fee quote is higher than $4.99, the guestf will only pay $4.99 and the store will be responsible for paying the remaining fee balance. A Foosburgers store would set the following Dispatch fee:
Example: Free Delivery Promotion
Foosburgers decides to offer free delivery over a holiday weekend. If a DSP fee quote is higher than $0.00, the guest will not be charged for delivery and the store will be responsible for paying the remaining fee balance. The Foosburgers store would set the following Dispatch Fee:
Example: Tiered Delivery Promotion
Foosburgers typically charges $7.99 fees for deliveries and would like to incentivize larger orders by offering free delivery. Foosburgers defines “large” baskets as $75.00 or more. For these orders, the store will be responsible for paying the entire delivery fee and the guest will receive free delivery. The Foosburgers store would set the following Dispatch Fee:
Does the billing process change for promotions? Can I cover the cost of these fees for my franchisees?
The Dispatch Payment Flow does not change during a delivery promotion. Invoicing for the sum of delivery fees and tips collected during the promotion campaign will be sent to the regular Dispatch billing contact for the store. Olo cannot change your invoicing structure for a delivery promotion.
Can I schedule Dispatch fee changes?
No, updates to Dispatch fees immediately go into effect and cannot be scheduled in advance.
How do I know I’ve adjusted the fee settings correctly?
Return to the Dispatch Settings page and confirm that the adjusted fee rules are accurate. Run a Dispatch Delivery Report to confirm what DSPs are quoting for your deliveries.