It’s a known fact that 3rd party delivery apps and services have created a new challenge in the restaurant world.
They create new bottlenecks in the production process, interfere with the restaurant’s control over the customer’s experience, and most importantly, they can cut into revenue by up to 35%.
There is no doubt that delivery apps increase restaurant sales, but when it comes to profit, it isn’t so clear.
That’s why El Pollo Loco adopted a new strategy to combat 3rd party apps encroaching on profit margins.
For delivery, the nation-wide chicken chain only offers a specific menu comprised of combo meals designed for multiple people. In addition to the consolidated menu, the options are also priced 13-15% higher than in-store options.
Delivery traffic has improved since El Pollo Loco implemented this new strategy. Bernard Acoca, the company’s CEO, understands that customers are willing to pay extra for convenience.
Part B of EPL’s delivery game plan: don’t be exclusive.
They found a way to still make healthy margins even with 3rd party partners taking a percentage of the revenue. More partners means more orders, and with a strategy that works, El Pollo Loco doesn’t have to hold back on their partnerships.
What are you doing to maximize your 3rd party delivery margins?