The Hidden Costs of Third-Party Delivery Apps and How to Manage Them

Quick Service Restaurants (QSRs) are increasingly partnering with delivery apps like Uber Eats and DoorDash to increase sales. However, these platforms come with hidden costs that can erode profits. Understanding these costs and managing them is key to maximizing the bottom line.

Unmasking the True Cost of Convenience

Third-party delivery apps often impose fees and conditions, like the ones discussed below. These costs quickly add up, so finding ways to fairly reduce your fees is critical. 

Navigating Refunds

Delivery apps allow customers to request refunds with minimal proof, leaving restaurants responsible for covering the cost of these refunds, even when the issue might not be their fault. This can lead to financial losses for franchise owners who are already navigating tight margins.

Avoidable Wait Time Fees

Delivery services may charge restaurants additional fees based on how long a driver waits at a location. While this fee is designed to encourage efficiency, it often unfairly penalizes restaurants for situations beyond their control. For example, drivers may delay their departure by ordering food for themselves or taking personal breaks. These actions can result in inflated wait time charges that impact a restaurant’s bottom line.

Reducing the Impact of Downtime and Deactivation

If a restaurant’s location is reported closed or orders aren’t accepted or closed out promptly, platforms like Uber Eats and DoorDash might deactivate the restaurant’s listing. These actions result in lost sales and impact the restaurant’s reputation. Furthermore, the unpredictability of these occurrences adds an extra layer of complexity.

Leveraging Technology such as Restaurant Logistics

To address these challenges, QSR franchise owners can benefit from partnering with tech experts in logistics and dispute management. Restaurant Logistics is one such partner, offering technology solutions to mitigate the hidden costs associated with third-party delivery apps. 

Restaurant Logistics handles all of your disputes and refunds, ensuring that restaurants aren’t unfairly penalized. It also monitors app activity to prevent downtime, ensuring that restaurants remain active and visible to potential customers. This proactive approach helps franchise owners maintain profitability and focus on core business operations. In return, Restaurant Logistics charges just 15% of the total money saved in a month. 

Strategic Management for Sustainable Growth

While third-party delivery apps are advantageous for QSRs, their hidden costs can impact profitability. Franchise owners must understand these costs and partner with the right experts to thrive in the competitive delivery market while continuing to deliver exceptional service to their customers.

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Restaurant Logistics supports QSRs by managing refund disputes, reducing unnecessary fees, and optimizing delivery operations across major third-party delivery platforms.

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Restaurant Logistics
Restaurant Logistics partners with franchise-owned QSRs to handle all of your refund disputes across 3rd party delivery apps such as UberEats/Postmates, DoorDash, GrubHub, SkipTheDishes, and more. Learn More