Is a Delivery Revolt Brewing for Restaurants?

Like many operators, franchisees of Wayback Burgers love the additional sales they can reap by simply signing on to third-party delivery services.

…But—and this is a big but—operators disdain the deep cut taken by third-party providers. The third-party share generally ranges between 20–30 percent, Conlin says.

“They take a significant bite into the profits,” he says.

And it’s tough to maintain control of the product when someone else is bringing it to the consumer’s door.

“It becomes a food quality issue,” he says. “Is that customer getting a great experience?”

Because of those concerns, Wayback Burgers is creating its own delivery solution. Conlin wouldn’t say much about the new program, but he says the company will begin testing sometime in August. He plans to unveil the plan to franchisees in the fall.

“We’ve been looking at all kinds of alternatives to the third-party guys. I’ve been working for the last four to five months on our own alternative to delivery solution that we think is going to be pretty significant,” Conlin says. “We think it will be a gamechanger for the delivery business.”

Conlin says Wayback’s new delivery solution will likely wean the system off of third-party services. He thinks his company’s move is indicative of a wider revolt against high-cost delivery services, which may eventually force some of those providers to ease their prices.

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