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Third-Party Delivery Has Saved Businesses During Pandemic, Restaurant Owners Say

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Third-Party Delivery Has Saved Businesses During Pandemic, Restaurant Owners Say

Many people have relied on third-party delivery services during the COVID-19 pandemic.

Fox Business reported that third-party delivery services have helped more than 80 percent of restaurant operators. These services prevented restaurants from having to lay off staff members and reduce hours. This is according to a study by Uber Eats.

Third-Party Delivery in the U.S.

The study was conducted in partnership with food market research firm Technomic. It found that “third-party delivery services provide an important channel for restaurant operators to reach new and existing customers, increase revenue, and grow and maintain their business, particularly during the COVID-19 pandemic,” read the survey report.

The survey has polled more than 400 restaurants that use Uber Eats for the month of June. These restaurants operate across the U.S. and in Canada. More than 350 respondents said they partnered with these delivery service providers.

“Overall, 92% of operators report using third-party delivery after March 15, 2020—27 percentage points higher than before the crisis,” the report said. “Third-party delivery saw the most rapid increase in sales (as a percentage of overall sales) since the start of COVID-19 and has doubled throughout the crisis.”

Three out of four restaurant operators surveyed said they would have had to close their business if they did not have access to these delivery services.

This type of delivery service has helped many restaurants to keep staff on their payroll during the pandemic. Some popular services in the country include DoorDash, Grubhub, Seamless, and Postmates.

However, “the services take out a costly chunk of between 10 to up to 30 percent of each bill, making it hard for a small business to make a profit in some cases if sales are already slow,” said Fox Business.

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