Own vs Partnering with a Restaurant Delivery Service
How do you choose between owning your own Restaurant Delivery Service location? It really depends on a few factors.
First, if you own your own location, you can name your service in the name you choose. For example, if you want to be Bob's Delivery Service, you'll be able to select that name. With a partnered relationship, you'll have to carry the name of the service you're partnering with. So, you might be Delivery Service of Your City with the naming conventions they require.
Second, are you good at managing your finances? Do you have a solid credit score to obtain a working line of credit? With your own location, you'll need funds to cover the costs of any pay-on-pickup restaurants you might have. This is typically pretty standard for a startup delivery service. If you need financial help establishing your market, the partnered delivery service will provide funding to you, but they'll also manage your expenses for you and share in the profits. Typically they make an 8% margin on your shared location. If it's your own location, you'll collect 100% of the revenue coming in, but you're also responsible for 100% of the expenses associated with it.
The startup costs for a new location can be hefty initially, especially with the amount of advertising you need to get out into the market. A partnered location setup will shoulder some of those costs, but you'll also have to conform to the requirements of their master marketing plan.
If you want to explore the partnered delivery service arrangement, let us know and we'll run through the requirements. There will be a capital expenditure, but not as much as purchasing your own location.