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In 2019, the modern consumer is supported by the immediate and all-encompassing presence of technology. Blockbuster, brick-and-mortar retail and taxis gave way to Netflix, Amazon and Uber, all for the sake of convenience. “Pick-up” is synonymous with “easy,” and having access to a card on a mobile wallet allows for more consumer purchasing power than ever before.At the touch of a button, food can be ordered and delivered in a matter of minutes. Whatever culinary niche a craving comes for, a plethora of delivery apps await the order. Third-party delivery has revolutionized the way restaurants communicate with their customers and can provide a service that is <a href="https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">faster, easier, more convenient and customizable based on a user’s previous orders</a>. Younger consumers have changed the game by prioritizing the convenience and comfort of delivery over choosing to sit at a restaurant, and who could blame them? Online deliveries are causing a bigger uproar than the first In-N-Out drive-thru did back in 1948. Third-party delivery services are leading in the market share of consumer spend: <a href="https://thespoon.tech/doordash-now-holds-35-percent-of-consumer-spend-in-third-party-delivery/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">DoorDash is first with 35%, followed by Uber Eats with 25% and Grubhub with 23%</a>.Revenue in restaurant-to-customer delivery <a href="https://www.acitydiscount.com/info/The-Problem-with-Third-Party-Food-Delivery.371.1.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">has a growth expectancy of nearly 6% per year by 2023</a>. It is such a noticeable difference that brands are adapting to the customer experience by means of the <a href="https://1851franchise.com/warning-restaurant-owners-third-party-delivery-services-are-taking-over-2710756#most-recent">concept of virtual restaurants</a> to ensure customer satisfaction. These virtual restaurants, or “ghost kitchens,” provide delivery-only meals through apps and third-party delivery services, eliminating the need for a waitstaff and increased menu flexibility. DoorDash recently opened one in California that <a href="https://1851franchise.com/doordash-goes-rogue-and-opens-shared-ghost-kitchen-2711310#most-recent">prepare brands such as Nation’s Giant Hamburgers, Rooster &amp; Rice, Humphry Slocombe and The Halal Guys</a>; and <a href="https://www.justsalad.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Just Salad</a>, in a partnership with Grubhub, opened one called Health Tribes—<a href="https://1851franchise.com/franchise-development-leaders-valerie-mccartney-of-broken-yolk-cafe-2711431#most-recent">its 50 units makes it the largest virtual restaurant </a>that is associated with a delivery company.<a href="https://www.seamless.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Seamless</a>, the <a href="https://www.grubhub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Grubhub</a>-owned online delivery service, purchased <a href="https://www.thelevelup.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">LevelUp</a>, a company that <a href="https://www.acitydiscount.com/info/The-Problem-with-Third-Party-Food-Delivery.371.1.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">helps restaurants develop digital payment services and loyalty programs</a>. Brands must constantly strive for creative options to keep the interest of their customers, but for those willing to put in the effort,&nbsp; it pays off: <a href="https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">20% of Starbucks transactions are made through the mobile ordering app</a> due to its rewards program and UX-optimized build; Taco Bell allows its customers to order, set a pick-up time, and pay in advance, which also averages out to <a href="https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">20% more than orders that are received in-store</a>.Some brands refuse to comply with this trend. <a href="https://www.jimmyjohns.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Jimmy Johns</a>, for example, sees itself as an “anti-delivery app shop”, and continues to employ its 45,000 drivers to deliver their iconic “freaky fresh” sandwiches. <a href="https://www.qsrmagazine.com/fast-casual/jimmy-johns-we-will-never-use-third-party-delivery?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">John Shea, CMO of Jimmy Johns, declared to QSR Magazine</a> that “delivery is now among the fastest-growing areas in the restaurant industry, but third parties are not up to the Jimmy John’s delivery standard. We are faster, fresher, a better value, and more consistent. For these reasons and more, we will never use third-party delivery services.” <a href="https://apnews.com/36be30dc1c944101a310bef3e79eca7a?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Jimmy Johns is not the only chain that refuses to use third parties for deliveries: Dominos, Panera Bread and Olive Garden</a> are staying on the bridge and not jumping after their restaurant chain friends into this delivery shift. Customer satisfaction is a priority, and in some cases, the speed in delivery and commission fees outweigh the benefit of using a third party.Third-party delivery isn’t necessarily a bad thing for those brands willing to sacrifice a portion of their margins. Grubhub claims that delivery services can attract new customers by <a href="https://get.grubhub.com/blog/best-strategies-for-attracting-new-customers.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">exposing potential new restaurants</a> that they weren’t aware of before, and an online presence will not only gain exposure through the app, but through social media as well. Recurring revenue, anyone?

Full-Service Makes Us Nervous: The Decline of Full Service Restaurant Traffic Against Third-Party Delivery

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Full-Service Makes Us Nervous: The Decline of Full Service Restaurant Traffic Against Third-Party Delivery

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