Catering is making a strong comeback, even surpassing pre-Covid times. As a result, restaurants are seeking ways to take advantage of this profitable revenue source.

One important strategy that many restaurants have embraced to improve their catering operations is partnering with third-party delivery services. 

Third-party delivery refers to a service provided by independent companies that partner with restaurants to deliver food orders to customers. There is a wide range of third-party delivery services that you can work with to fulfill or serve as a backup for your delivery operations. 

One option is gig fleets or marketplace delivery services. These entail drivers who are contractors for popular delivery services like Uber.

Another option is a professional delivery service, usually serving a specific region or locality. These drivers are different than gig fleet drivers, as they’re directly employed by the delivery company, and can follow more extensive standard operating procedures. Both options use their own logistics and personnel to handle order pickup and delivery, allowing restaurants to reach customers beyond their own delivery capabilities.

As great as this extension of help can be, there are common challenges that restaurants often face when leveraging third-party delivery services, especially for catering. In this blog post, we will explore these challenges and provide insights on how to overcome them effectively.

You can also try our free tool below to find the best provider for your catering order. Just enter your current delivery setup and order details, and we'll help you make the right choice.

The Challenges of Third-Party Catering Delivery

Matching (and scaling) the impact of internal fleets

Many restaurants prefer using their own delivery fleet to fulfill catering orders, and it’s easy to understand why. Internal drivers inherently represent the restaurant's brand, build direct customer relationships, and follow established procedures. But they can't be everywhere at once, especially during peak times, the last-minute catering rush, and busy seasons.

But not being able to meet the demand with internal drivers can lead to missed opportunities and unhappy customers. Having reliable third-party catering delivery services as a backup can be helpful in such situations.

Poor brand representation and compliance 

A common issue is that third-party drivers, being independent contractors, sometimes don't follow the restaurant's or delivery services' procedures. This limits their ability to handle important tasks like food setup, equipment operation, and event assistance. These tasks are crucial for providing a seamless customer experience aligned with the brand.

Negative experiences can directly impact the restaurant, resulting in lost customers and revenue. In extreme cases, a poor catering delivery may require a full refund.

Mismatch of order size and vehicle types

Reliance on third-party delivery services for catering presents another challenge: a mismatch between large orders and vehicle types. A bike or a small car like a Prius can't really deliver orders with multiple trays, bags, or platters. And especially not orders exceeding $1000 in value.

With many third-party services, restaurants have limited control over the types of vehicles used for deliveries. You must work with what's available, which might not meet the requirements of your large catering orders. This lack of flexibility can lead to logistical issues and compromises in timely, efficient delivery.

Lack of capacity planning

Capacity planning in the context of catering delivery refers to the process of effectively managing and allocating resources to meet the demand for catering orders within a specified timeframe. It involves assessing the volume of orders, the available resources (such as drivers, vehicles, and kitchen staff), and the logistical constraints to ensure that the delivery operations can handle the expected workload efficiently.

In catering delivery, capacity planning becomes crucial because multiple orders need to be delivered within specific time windows, often during peak hours or rush periods. It requires careful coordination and optimization to ensure that the right resources are allocated to each order, minimizing delays and maintaining the quality of the delivered food.

Balancing this can be challenging when relying on third-party services. When scheduling multiple catering deliveries within a specific time frame, it's important to have enough drivers available, and know where they are and which vehicles they’re using, to handle the volume effectively. We also want to point out that the surge in the idea of outpost catering (shout-out to Sweetgreen!), which requires quick shelving of individual orders at a specific dropoff, point during the lunch rush, adds even more complexity to capacity planning.

Limitations in real-time tracking of drivers

Accurate tracking is essential for catering orders where timeliness is important. Both internal drivers and third-party delivery services face challenges in providing real-time tracking. Internal drivers often lack a transportation management system (TMS) for real-time tracking, making it difficult for restaurants to monitor the progress of catering orders.

Third-party delivery services offer varying levels of tracking, but relying solely on gig fleets carries risks such as inconsistent service quality and lack of brand control.

Navigating tipping concerns

Another challenge with third-party catering delivery is tipping. Restaurants struggle with whether to subsidize tipping for drivers or pass it on to the customer. This decision becomes complex considering the difficulty in controlling customers' tipping actions.

To navigate this challenge, restaurants should clearly communicate their tipping policies and provide guidance for appropriate tipping amounts. Integrating features that allow customers to add a gratuity at the time of placing the order can streamline the tipping process.

Ensuring driver insurance coverage

The final challenge is ensuring that third-party drivers have proper insurance coverage. This protects restaurants against potential accidents or damages during the delivery process. Verifying driver insurance minimizes liability and financial losses for restaurants.

How to Bridge the Gap with Third-Party Catering Delivery

To overcome these challenges, marketplace and partner platform Nash can be an invaluable resource. As a partner to third-party delivery services rather than a competitor, Nash streamlines the coordination and execution of catering deliveries, directly addressing the common challenges faced by restaurants in this sector.

Branding and Customer Service

Nash enables restaurants to communicate their brand values, guidelines, and service standards to all drivers involved in the catering delivery process with each dispatch. This ensures that each driver represents the restaurant's brand identity accurately and consistently, reinforcing brand recognition and loyalty among customers.

We also handpick and vet every provider who joins the Nash Delivery Network. When onboarding with Nash, we’ll assign these providers to your account so they get to know you well in advance of your first dispatch. We can also accommodate requests around the level of insurance you will need for your drivers.

Vehicle Flexibility

At Nash, we recognize that larger catering orders require larger vehicles and provide the flexibility to accommodate this. Through Nash, operators can specify the vehicle type needed for each delivery, like a sedan, SUV, or van. This helps guarantee a successful delivery.

Real-Time Tracking and Capacity Planning

The Nash platform offers real-time visibility into every delivery, enabling restaurants to monitor progress and provide customers with timely updates. We integrate with the top TMS platforms. If fleets or drivers aren’t using a TMS, we can enable any delivery provider to share live updates with the operator and customer.

Plus, Nash assists with capacity planning and route optimization, helping restaurants handle high volumes of catering deliveries effectively, even during peak times.

Easier Tipping Management

Nash also addresses the challenge of tipping, allowing operators to decide how to manage tipping, with options for subsidizing or passing it on to the customer. When it’s time to dispatch an order, operators can easily enter the tip amount. There’s even an option to send it to the Nash platform from their online ordering system or POS.

Try our Free Catering Delivery Assignment Tool

We offer an easy-to-use tool that simplifies the decision-making process for selecting the best provider for your catering order. Just provide your catering operations and order details, and we'll recommend the best option for you.

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Deliver with third-party catering providers reliably with Nash

Nash is a powerful solution for restaurants looking to leverage third-party catering delivery services effectively. It helps overcome the challenges mentioned in this blog post and enables restaurants to deliver a seamless, high-quality customer experience while maintaining brand integrity.

By using Nash as an all-in-one catering delivery solution, your restaurant can efficiently leverage third-party providers and turn it into an opportunity for growth and success.

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