I hope that this blog post finds you well and prosperous. I know that many of us are back in areas with restrictions, and we are not sure where things will go from here.
Do you wish your bakery would populate in a Google search for bakery delivery near me? I am sure this questions makes you stop and go “um… I can’t afford to hire someone to make deliveries.” What if we told you that as a bakery, we have learned to harness DoorDash and GrubHub to help us get into the bakery delivery near me search?
Yup, that is right, and we want to give you a little behind the scenes of using the third party delivery services DoorDash and GrubHub.
Some of you may be using these platforms. Some of you may not, and some of you may not qualify. Either way, we want to share with you are experience and how we manage it.
So some of you may not know, but we are in a shared retail space with other vendors. This means like having a commercial kitchen, we still have to schedule our bake time.
However, these restrictions have not stopped us from utilizing DoorDash and GrubHub in our business. We hope by sharing our experience we can help you with your business.
I am going to work hard not to ramble on too much on you.
I need to preface the information below with the following:
We use our pricing calculator (that you can learn about here) and a special process for creating pricing in our business. We did not know the full extend of the high pricing when going into the agreement with both Door Dash and Grub Hub.
We knew the cost was high, and we are grateful because we actually had the additional profit margins built into our retail pricing to still cover costs, pay ourselves, make a 20% profit, pay our additional 10% of sales to our landlord, and cover the fees for both Grub Hub and Door Dash without having to raise our prices.
PROS:
- Both platforms have a large following, large marketing, and large customer database that you get access to when you sign up for the platform
- Both payout weekly
- Both offer ways to easily get orders
- Both provide you a reliable option for delivery (something we cannot afford to offer on our own at this moment)
- Both provide opportunities to offer an online ordering platform for you to host on your website and social media accounts (this is free until March 2021, then there will be some fees associated with this service)
CONS:
- High cost- the cost is based on a percentage. Ours is 26% for both platforms. I am not sure if yours will be the same or not.
- Managing inventory can be difficult when you do not bake or cook on demand.
- Really costly to do additional promotions and marketing through their platform.
GrubHub and DoorDash have allowed us to show up in during a Google search for bakery delivery near me. Hopefully, you can take this information and apply it in your own bakery business.
I could continue on and on about ways that we use this platforms and the differences between the two, but I think we will end here with the list of pros and cons that we have started for you.
If you have more specific questions about the platforms, comment below. We will be happy to share with you how we manage things in our bakery business for these two third party delivery services.
One thing I am not sure of is if you can use the services for cottage food bakeries. I would check with your local authority to determine your eligibility before contacting these two platforms.
