Viable Restaurant Strategies for Handling the Third-Party Paradox

The cost of partnering with third-party food delivery services can be high, but the cost of not doing so could be even higher. Even before the pandemic, this insight was fast-spreading as small, mid-size, and large restaurant chains alike did their best to keep up with the trend, accessing the customers that companies such as DoorDash, Grubhub, and Uber Eats had made available. COVID-19, however, put change into hyperdrive. 

Two key factors are driving the problem for restaurateurs: the first is the fact that delivery has become more than just another sales channel. It has become a lifeline for many restaurants that have been forced to close their doors or limit on-premise tickets during lockdown measures. 

Realistically, for some, abandoning the delivery segment would be tantamount to shutting down completely. The second part of the problem — where it becomes paradoxical — lies with the high service and subscription fees that third-party companies charge, which can be as much…