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hello aces welcome back to module seven lesson number three increasing your sales through food delivery apps in this lesson you're gonna learn about the five ways to increase your sales through delivery apps leverage them for your good and what are food delivery services for those of you that don't know what food delivery services are these guys are basically apps that puts your restaurant's menu on their application so then that way when people order through their phone you get notified to make the items and after you make the items a driver will come and then pick up your items and deliver it to your customer so think of them as a logistical company and typically what they charge is around 35 percent 15 to 35 percent is what we're looking at in terms of fees so typically speaking if you are getting charged 35 from ubereats at the end of the week after you generated 10 000 dollars in sales 3500 goes to ubereats and you only get back sixty five hundred dollars now you can actually see why a lot of people are complaining about these food delivery apps and the high commission that they charge and once again it's 35 off the top off the top as in revenue guys not profits now i also want to be able to share some stats with you um if you're thinking about hey you know what i'm gonna wait until this whole thing blows by you know it's only going to be a fad food delivery is not going to stay people are not going to be willing to pay like let's say five dollars for delivery fees well on that note i do want you to really reconsider because this is not just a thing for the younger kids as you can see from these two charts a lot of people are ordering it even for some of the older generation who does not uh understand the value of it yet and they still are ordering it so this is going to become the norm and it's not if or when it's a must at this moment so definitely be on these apps and learn how to use and how to leverage them properly some of the most common food delivery services that are out on the market nowadays there are going to be much more of them specifically in your city so the pros we're going to be talking about the pros and the cons and why i'm all for using these food delivery apps number one thing is that you don't need your own driver just think about it for a second if you were to have your own driver you're gonna be paying two thousand three thousand dollars a month for them to actually sit into your restaurant and to work with you and you need to worry about their insurance you need to worry about the vehicle you need to worry about maintenance the gas and on top of that you need to worry about the fact that they usually for your food restaurant you get the lunch rushes or the dinner rushes how can you have one person deliver food for you when let's say you have 15 different orders all ready to serve out at the same time and that's the reason why i truly believe in the effect of having a food delivery service because you don't need to own your own driver and your own fleet of drivers if you don't have enough volume okay and i'm only talking about the typical restaurants that we're consulting and that we're talking about because typically speaking we're not looking at 1500 orders like one of my friends mark candles in seattle he has 1500 orders per day so it's actually makes sense for him to have his own team of delivery drivers because that saves them a lot and on top of that it allows them to build that infrastructure out but typically speaking for a small restaurant having a food delivery app service and the logistical team that they set out for you is much more efficient for you and on top of that when you on board these apps you get exposed to hundreds if not thousands of new customers all the time because people are just on their phones browsing for specific cuisines to eat and if your food is good and if you have proper photos and proper pricing then you're going to be able to have that new traffic for you and on top of that these apps they spend millions if not billions of dollars in marketing costs to bring in new customers and the insight here that i want to share with you is the fact that none of the food delivery apps are making money they're actually losing money on a monthly basis and the only reason why they're still in business is because they're getting a lot of investment and their whole game is about consolidation that means that if one or two giant food delivery apps exist they're gonna turn into like the amazon okay and as you can see amazon even though they charge you a prime even though they charge you two dollars shipping three dollars shipping they are able to deliver your item within 24 hours if not 48 hours and that really is the essence of what they're trying to build right now the food delivery apps now again i don't want to go on a huge tangent on that but nonetheless know for a fact that these food delivery apps are really really um advantageous to your restaurant on top of that it offsets offsets all the sunk costs with added revenue what does that mean that means that regardless of people coming into your restaurant or not and regardless of you having business or not you still need to pay for the rent so why wouldn't we want to be able to have more orders to offset these sunk costs and on top of that it's super added value during cold weather it's poor weather is when it's raining when people don't want to go out and even in the midst of pandemic this is the reason why having food delivery apps as part of your offerings is really really uh as an advantage to your restaurant now the cons is of course the high fees and it cuts right into your margins typically speaking what i was sharing with you 15 to 35 depending on the food delivery apps and on top of that you don't own your customers what does that mean that means if you want to contact your customers you're not able to do so and also it has a reduced brand experience because everything goes off of these apps interface now one of the worst mistake to make when using food delivery service as an option is that you see it as a profit generating item and you get upset because they charge you 20 to 30 commission and you're not making money because you're like wow these guys are gouging money from us this is a big no-no we don't see them as a profit generating item and if we don't see them that way we see them as a marketing tool then automatically your position changes your perspective changes and you see how great of a tool they are so then that way you can leverage them and if you never see them as a marketing tool then you will never treat them like that and thus you'll always be complaining and you'll always be losing money rather see them as a marketing tool that's going to generate more sales for you and more customers for you food and beverage margins as i was saying ranges from five to ten percent for some of them that are have better management it goes all the way up to 20 margins so what does that mean that means a 30 cut and commission cuts right into your business and to your profits and that's the reason why we see them as a new way of generating customers we see them as a marketing cost right that's what i was saying all along see them as a marketing tool your job is to convert these new customers a lot of them into regulars who dine in for your food and beverage and on top of that you would want to convert them and entice them bribe them into your world now we're going to cover the five smart ways to convert them into uh and how we can leverage the food delivery apps and to increase sales for you first of all logistics in the orders super crucial for you to be able to actually have logistics in order a lot of people on board these third-party apps but then have no logistics or have no planning in their logistics and thus in turn turns it into a really bad experience for not just the customer not just the staff but also for yourself and that's the reason why you need to and you must have your logistics in order make sure this proper systems are in procedures are set in place to optimize the whole delivery experience because when there is a missing order because when there is an item that is wrong because when every whenever there are anything that requires a refund uber eats will ding you that means that it's added cost for you and on top of that customers don't blame the app they blame the restaurant they think the restaurant messes up and that's the reason why if you were to onboard and leverage these food delivery apps having your logistics in order is one of the key ingredients to make it a um a pleasant experience for everyone now give you an example front of the house accepts an order from the delivery app on their phone or on the ipad then back of the house is notified at this moment you need to be able to ask yourself what would the procedures be like at this moment how is it connected to the ordering system how are the chefs gonna be notified and when they're notified what priorities are they given to delivery orders because you're gonna be servicing people having dine in dine out and on top of that your own delivery and then these food delivery apps and also you're going to have multiple food delivery apps that you're going to be on boarding as well so how can you prioritize it so then that way you're going to have the food out to the people who place the order in a efficient manner how is it presented how are the items presented and on top of that now the back of the house sets that finished item for front of the house where do the back of the house put the delivery orders because you don't want things being mixed up understanding the logistics and the flow would ensure a better system and better experience for your staff as well because they don't want to be going through 10 orders just to find the right one for the driver that's waiting to pick that up it's going to be a really bad experience so having this logistics set up in the beginning is also key now front of the house hands the item back to the driver where is it being picked up or is it going to be put in these cubby holes i've seen chipotle does an amazing job they have these cubby holes more than 50 50 of them and when their order is done they just slot it into these cubby holes so then that way everything is organized and um all they have to do is the driver comes in presents the code and the staff would advise them where to pick up their food right so the whole point is to make sure that the drivers are in and out we want to maximize the whole and delivery service system second way is to negotiate the fees this is something that i see a lot of people afraid to do you can actually bargain i talked about 5 15 to 35 on the high end but nowadays you can actually negotiate them down to around 20 to 25 that means that any percentage that you're able to negotiate goes into your pockets these guys are profits okay right up the top so that means every percentage counts don't be afraid to ask for negotiation and ask for a lower rate especially during this time a lot of these food apps will work with you you should also choose dishes that are easy to make and have much higher margins work on your profit center go back to the module that talks about how you can craft your menu because this is a really key item in order for you to maximize your profits now as a bonus you can also create a separate delivery menu that are catered to delivery service why would you want to do that well since well the reason why is because you want to put in menu items that have the highest margins and also easiest to make and also travels well for your customers once again work on the higher margins items and on top of that i'll give you an example if it takes you 40 cents to bake it brownie okay and you're selling them for five dollars a piece then definitely include that into your menu item because of the fact that this is an ultra high margin item it is very very um in high demand as well especially as a great add-on for your meal definitely go back to the module that we talked about crafting your menu and choose the ones that has high margins and high popularity now third way is to don't pick based on numbers okay what i mean by that is don't pick an app just because of the fact that they're cheap just because of the fact that they are giving you a better commission rate because sometimes choosing the lowest in fees isn't the best case because it's not the best experience for your customers they don't do as much promotion and on top of that they are just not they just don't have enough people on their apps so sometimes paying that extra five percent is worthwhile for you to invest with them as well and um they you should some things that you should also look into is whether they have a great end user interface if the app doesn't have a good interface that means that the customers ordering from them would not like to order from them they would actually look for their competitors so for me i personally don't like ordering from ubereats because i don't like the way their interface is i don't like how they structure the delivery fees i love using door dash i love the dash pass because it seems like i'm saving a lot of money but in reality when you do the math when you do all the calculations it comes up to be relatively the same okay choose an app that is easy to use appealing and has a frictionless experience it doesn't push people away from you that is one of the keys and on top of that making sure you choose an app that has an efficient food delivery process because once again when people order from you you would expect your customers would expect the food there within 15-20 minutes and that's the experience we want to be able to deliver if the app doesn't have that infrastructure if the drivers for those apps are not incentivized that way then sometimes orders take 45 minutes 50 minutes to deliver and when your customers receive it not only does the food quality go down but also they'll blame you the restaurant for preparing the food so late and that's the reason why choosing one based on price is not always the most optimal case okay make sure that the drivers are well trained polite food arrives on the timely manner this all comes back down to the experience next up number four keeping good quality at max and what does that mean that means you need to check all your menu item to make sure that they're good for delivery because fries may be good right up fresh crunchy and tastes great but if it's in the container delivered for 30 minutes what would it become it would become a soggy piece of mess and that's the reason why i would never ever recommend my students to serve fries as a delivery item because it's just not the greatest quality even if you specialize in fries okay that is a really really bald statement because if the product is no good why do you want to serve it you don't have any incentive to serve a bad product do an inter internal test run to see how your product looks and taste by delivering your food to your friend after 30 minutes okay if after 30 minutes the item is still good then you have passed the test if it is not then make sure you tweak and only offer products that has the best quality because once again think about it so many restaurants are now on these apps so that means if your food is not good if you don't have a pleasant experience for your customer they directly link it back to your restaurant and the experience that they have with you and they're not going to choose you again and sometimes you only have one chance to prove yourself lastly we talked about converting them we talked about not seeing them as a profit center we talked about you seeing them as a marketing tool how do we do that we need to convert them these customers are coming in because of the app so think about the journey about how what the customers go through they're hungry they're looking for some really good vietnamese food so therefore they come into your app and then they select your restaurant so what did what do you do you convert them into your regulars by bribing them because why would you want to do that you want them to comment as a regular so they offer they order from your site so then they are they order for pickup and then they order for dine in because that's when you see that bigger margin that you can keep as your profits now how do you do that i always talk about bribe right ask them to add you on social media so that way you can own your customers so then that way you can market to your customers whenever you have deals add them into your world and bridge that culture that i always talk about now how do you bribe that and allows you to nurture the relationship you need to be able to slip in bribes okay we're talking about either uh having percentages off your next time visit or having a free appy or free drink or even having a five dollars off ten dollars off for the next dine in service these are all really really great bribes for your potential customers that you're changing and converting them from a meal kit uh or delivery app customer into a dining customer that gives you the margins you're looking for ultimately what we want to be able to do is even if they just order from your app you're not going to be losing money that's how good of a menu you want to be able to create now after you convert them when they come in you're going to be making much more margins and that's the reason why having these bribes and having these five dollars off 10 off or even like an appy or a drink is really really effective because just think about for one second even if they come in and they spend let's say fifty dollars with you and you give them a free appy at your cost is probably what four dollars five dollars that is only ten percent of the revenue that you're going to be generating whereas if your customers order for from these food delivery apps they will still be paying 20 to 30 margins and that's the reason why you can give and afford to give these different types of bribes to your customers and ultimately what you can also do to bribe them is to have them do contests viral contests so then that way they are much more engaged with your brand now you our whole goal here is to get them off the app and onto your food and beverage establishment that's the whole goal here so be creative and be innovative when you're crafting these whole experiences in the next lesson we're going to cover how you can actually create a viral contest so once again in this lesson we learned about logistics in order negotiate your fees don't pick apps based on pricing or the commission and making sure that you keep your food quality at a max and also lastly make sure you convert them when you put all these things together you have created yourself a bulletproof food delivery item and system so then that way you can go to market properly and be able to benefit from them a lot of people skip this step and everything adds up together okay if they skip this step this is two three percent if they mess up in the logistics they're going to lose customers and in turn it would cost them more money and here same thing right here if the experience is not good enough then it's not going to be a pleasant experience for your customers these items that i'm sharing with you might seem simple might seem like it's a given but believe it or not not a lot of people focus on stacking and doing this in the perfect manner when you have done this perfectly that's when i've seen some really incredible results that they are one of the top hosts that they have a dozen reviews all the time positive reviews all the time so once again have your secret menu as well now it is your turn to go out there and create your five ways and use actually go and implement these ways to have your food delivery services and if you need the resources go into the link below download the resources so then that way you can follow along what you have learned right now is the five ways to leverage the food delivery services to increase your sales and next up we're going to be talking about how you can create your own very own viral contest to 10 times your social following i can't wait to share with this with you i'll see you guys in the next video