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Costs vs. benefits of selling food online

Costs vs. benefits of selling food online

The increase in food orders online and and the reduction in the capacity of restaurants as a result of the Covid-19 pandemic has motivated gastronomic businesses to open new channels to sell food online, but how much does it cost to provide this service and what benefits does it bring you in the short and long term ?

 If you also want to know what the profitability of a sales channel is online and for your restaurant, here are some important points that will help you have a better picture!

What are the essential direct and indirect costs to sell food online?

The initial investment you must make will vary depending on the type of service you choose to open your online sales channel. However, you should keep in mind direct costs derived directly from your production, As:

  • Raw materials of a saucer.
  • Cooks labor.

Consider that the cost of the dish will represent about 30 percent of your sales and, to greater volume of sales, your direct costs will increase. 

If your restaurant does not yet have an internet connection service, it is important that you can consider it within the indirect costs that you will have from the moment you start your sales channel online and, as it will be essential so that you can serve your guests online.

How much does the home delivery service cost in a restaurant?

The cost of the home delivery service is one of the main concerns when wanting to open an internet sales channel in a restaurant, especially for those who have never had this service and who have been forced to create their food business plan delivered following the arrival of Covid-19.food delivery service to sell food online

In order to integrate this service into your restaurant, you have the option of partnering with applications for home delivery of food or, forming your own delivery team or partnering with taxi or parcel services in your area, and each one raises costs and benefits different

Cast applications

The choice of food delivery apps can represent a saving in costs of own delivery people, but it poses a variable indirect cost that, since the beginning of the pandemic, has generated discontent among many restaurants associated with these platforms.

“Food platforms are abusing the restaurant crisis. They are taking away 32% of the commission from the sale, minus 30% of the cost of the dish, 62% is gone, you have 38% left (of $ 100 pesos you have $ 38 pesos left. We are paying expenses without gaining a peso, The restaurants are going bankrupt !!! ”, opinion expressed by a restaurant in Yucatan.

In addition, as of June 1, delivery apps must pay a retention of up to 5.4 percent of ISR and up to 16 percent of VAT, which increases your costs for both you and your customers.

Hire your own cast crew

To hire your own cast crew you must take into account the deliveryman salary, social security and fuel, which can represent between $ 6,000.00 and $ 8,000.00 Mexican pesos. Remember that if you do not have transportation, you can integrate distributors who already have their own vehicle.

It may interest you: What does a restaurant need to sell food online?

Keep in mind that the number of delivery people you need will depend on the demand you have. If this increases, it will be advisable to invest in more distributors so that you do not make your customers wait.

Association with taxi and parcel services

Increased demand for food orders online and motivated many restaurants to partner with independent delivery services, taxis and parcels to provide home delivery service without having to rely on third-party applications or hire their own delivery team. 

Although the costs vary depending on the agreement you can reach, keep in mind that you can consider a flat rate that you can include in your shipping costs.

How much does your own platform cost to receive food orders online and?

Although you can start receiving orders online from your WhatsApp messaging or your social networks without involving a strong initial investment, there are customizable platforms that allow you to significantly improve the customer experience and, therefore, guarantee the success of your online sales both in the short and long term.

 These platforms are generally offered in the monthly and annual rental modality, and their cost can range between $ 200.00 and $ 600.00 MXN per month, much less cost than what can represent 30 percent of commissions Of applications about your home orders.

What are the benefits you will get from selling food online?

benefits for customers of selling food online

 IRegardless of the options and tools you choose to sell food online, some of the main benefits that you will have from the first moment when investing in this new channel are:

1. Increase in sales beyond capacity

With an internet sales channel You no longer have to depend on the number of tables occupied in your establishmentBoth when there is a low occupancy of diners and when you do not have space to receive more.

 For example, some restaurants that are users of the platform Soft Restaurant e-Delivery generated sales of more than 40 thousand Mexican pesos only in the month of June 2020, with an average ticket of $ 300.00 MXN.

2. Provide your customers with greater ease to order your services

Having digital tools to sell food online will allow you provide your clients with effective solutions to be able to order easily and safely, as well as increasing your responsiveness through the automation of the order process.

 Note that cmore and more people prefer to order food online to eat at home, and once they have tried the ease of ordering from the internet Without spending too much time talking to a caller, they hardly ever pick up the phone again to make a call.

It may interest you: Why Selling Food Online Helps A Restaurant Grow

3. You can continue to sell in emergency health situations

For many restaurants, having an online sales channel was the lifeline they needed to face the health contingency due to Covid-19, as was the case of Taquería Dzul, in Yucatán. 

 "Thanks to the platforms or applications 👌🏻😌 we can be grateful that during the pandemic 73.6% of our sales were digitally ... just like you for consuming."

It may interest you: How Tropikal Kok faced the Covid-19 crisis with Soft Restaurant e-Delivery

Is it profitable to sell food over the internet in a restaurant?

While opening a sales channel online and It is a step that requires a well-planned strategy to obtain the most benefit both in the short and long term, the benefits that you can obtain make it a highly profitable investment which will not only help you increase your global sales, but will also allow you to have tools to continue operating even in emergency situations.

 Would you like to know how much it will cost your business to sell food online and what will be the return on your investment in the short term? We invite you to download our Return on Investment (ROI) Calculator to find out!

roi calculator of selling food online