It is referred to in the trade as “third-party delivery” – the utilization by a restaurant of an online food-delivery app. At first glance – or perhaps first click – it seems utopian. Instead of delivery being handled as it has been practically from the beginning by a restaurant employee usually referred to as “the kid,” as in “I’ll have the kid bring your order right over,” the attraction of delivery apps such as Uber Eats, DoorDash, Grubhub, Delivery.com, Postmates and other so-called delivery aggregators is multifaceted.
Hungry customers are downloading the apps in droves, particularly the highly sought-after millennials, who are clicking away at lunchtime, dinnertime and particularly late nights. At the restaurant, the order-taker clicks as well and a driver – referred to by the app company as a “delivery partner”– whisks the customer’s order to their door in minutes – hot, appetizing and delicious, by car, bicycle and even skateboard.
The app takes care of payment, right down to the tip for the driver. The app calculates delivery time. And the app will advertise the restaurants that use it, thus assuring each of record demand, more customers and untold riches. All with minimized liability and virtually no hiring or staffing burden (because it is virtual). Where is the downside?
For some owner-operators in the restaurant industry in Rhode Island the downside is: Things are different here.
Our state ironically does not seem to fit neatly within the algorithms under which these national services operate. Now, if your address is in an urban neighborhood, all reports are of a satisfying experience getting delivery from any one of the leading food-delivery apps that serve the city. But as I found out, “urban” Rhode Island is a very small part of a very small state.
[caption id="attachment_264884" align="alignright" width="300"]
HOME DELIVERY: A Panera Bread employee delivers a meal order to a customer. Panera Bread and local franchisee Howley Bread Group have built their own delivery infrastructure, enabling the fast-casual chain to retain customer loyalty and customer data, rather than utilizing a food-delivery app.
/ COURTESY HOWLEY BREAD GROUP[/caption]
City versus country seems to be a common issue among local restaurateurs in utilizing delivery apps. Domenic Ierfino, whose Roma has been a Federal Hill success story since the 1980s, stopped using Foodler years ago due to customer complaints. He recently acquired a neighborhood pizza place in the village of Hope in Scituate, near the border of Coventry, Cranston and West Warwick, that he renamed Rufino’s Pizzeria. Ierfino says 90 percent of his new business is takeout and delivery. He signed up with Grubhub but it did not go well.
Ierfino reported the app was sending out drivers from Providence who were getting lost in the countryside, with some unable to find the pizzeria. He hired a town resident as a delivery driver and purchased equipment to keep pizzas hot en route, as well as car signage and uniforms.
“I [have] no issues and Rufino’s customers are much happier,” said Ierfino.
Similarly, Waysider Grille in East Greenwich is phasing out DoorDash in favor of hiring local delivery drivers.
On a recent Saturday night, I sat down at dinnertime in my suburban living room near the state’s exact geographic center ready to take full advantage of the state of the delivery app. I brought up Uber Eats, one of the top three nationally ranked apps. On my screen appeared a multitude of choices, from fast-food chains to ethnic delights by some leading, local independent restaurateurs. But some places were not available just then – understandable given that it was prime dining-out time.
Two others advised “This restaurant is a bit far, so the booking fee [translation: delivery charge] is an additional amount.” One place estimated delivery time of 50 minutes. The distance to the restaurant was 8 miles. Point of comparison: There are two supermarkets located 1.1 miles from my house where I could have driven, purchased ingredients, returned home and cooked food in that time.
Uber Eats, in particular, has difficulty recognizing nonurban areas. Its app lists numerous “available cities,” but no Rhode Island communities by name. The state itself is on the list, along with similar designations for other wilderness areas such as New Jersey and eastern Washington (state). Newport apparently is not urban enough for Uber Eats. A city address 2 miles from Ted Karousos’ Blue Plate Diner, in Middletown, which utilizes the app, drew this response: “Uber Eats isn’t available [here] right now. But we’re continuing to expand so check back soon!”
Ironically, Karousos is an Uber Eats fan. After less than a month using the app, he enthusiastically related features and benefits – “Their drivers are great!”
For some owner-operators … the downside [to delivery apps] is: Things are different here.
Revenue goals from using the app have already been reached. The Blue Plate, he said, is “well-represented” by the app. He thinks apps are as dramatic an innovation as the drive-thru window almost 50 years ago. He predicts the future of all restaurant business will be as much as 25 percent delivery, which he said will have a “seismic” impact on overhead costs restaurateurs now must incur.
Not all national restaurant companies are app-happy. Domino’s has stated publicly that its investment in its own digital platforms and hiring its own drivers gives the pizza giant a competitive advantage. Panera Bread and local franchisee Howley Bread Group have built their own delivery infrastructure, enabling the fast-casual chain to retain customer loyalty and customer data, a major trade-off when apps are utilized.
According to Fast Company magazine, food-delivery apps are already a $13 billion-a-year business. It is clear they are here to stay and will work out their global versus local issues. But all dining out – even via delivery – is local. One size does not fit all. This may be the greatest paradox of the delivery-app industry. Even McDonald’s, the largest user of Uber Eats, does not have a companywide plan for how to get those Big Macs out the door and avoid frequent bottlenecks. Some enterprising Uber Eats drivers came up with a solution: They use the drive-thru to pick up their delivery orders.
Bruce Newbury’s Dining Out radio talk show is heard Saturdays at 11 a.m. on 1540 AM WADK, through various mobile applications and via smart speaker. Email Bruce at Bruce@brucenewbury.com.
