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Navigating NYC's Food Delivery Changes: How Local Restaurants Can Adapt

Navigating NYC's Food Delivery Changes: How Local Restaurants Can Adapt

TLDR 

Food delivery in New York City is changing as a result of a recent law that has increased the minimum wage for delivery workers and tweaked the tipping system. While these shifts may initially seem disruptive, here's the silver lining for local restaurants. Adopt mobile technology and optimize your setup for more pickups - more than 90% of orders in the city are already that way. You can survive these changes with ease if you provide customers with an easy-to-use mobile app that makes pick-up simple. 

Shifting Dynamics in Delivery Compensation

The law calls for an increase in the minimum wage for NYC delivery workers to pay delivery workers $17.96 per hour, which will go up to $20 by April 2025. This step shows the city’s commitment to fair compensation and supporting local communities. But there's more than one side to consider in this situation. Many delivery companies do not seem to be happy with this ruling and assert that the law will reduce the size of their delivery zones. 

In this situation, it's important for local restaurants and coffee shops, to adapt to this new compensation structure, as delivery platforms adjust fees and tipping processes to account for higher costs. Rethinking your online ordering and delivery strategy can help minimize the impact. Focusing on pickup orders, which make up 90% of transactions in NYC, provides an easy solution. Promoting your pickup options through social media, email marketing, and in-store signage encourages customers to opt for this convenient choice.

Focus on Pickup Orders and In-House Delivery

Given that the vast majority of orders are pickups, focusing on this trend benefits both shops and customers. Here’s how restaurants can encourage their customers to do more pick-up orders: 

  • Prominent In-Store Signage

Display pickup options and benefits at your storefront to catch the eye of walk-in customers.

  • Online Promotions

Offer exclusive discounts or promotions for orders placed directly through your website or app, incentivizing customers to choose pickup.

  • Efficient Order Notifications

Implement a robust notification system to inform customers promptly when their orders are ready for pickup, ensuring a smooth and timely experience.

  • Curbside Pickup Convenience

Enable curbside pickup services in your app, allowing customers to conveniently collect their orders without leaving their vehicles.

  • Loyalty Programs for Pickups

Create loyalty programs specifically tailored for pickup orders, rewarding customers for choosing this option consistently. 

Furthermore, In-house delivery provides greater control over the process and cultivates community bonds without having to rely on third-party delivery companies. 

Leverage Technology for Adaptability

Utilizing an app like Per Diem, a white-label ordering solution, equips you with an efficient system to adapt to these changes. Per Diem offers customizable online ordering, integrated with the Square POS system, that provides convenience for you and your customers. Technology partners that cater to your evolving needs will be key to navigating new regulations.

While delivery platforms adjust to policy changes, focus on what you can control. Pickup orders, in-house delivery, and leveraging innovative solutions demonstrate your adaptability.

Adjustments to Certain Priority Access Programs

Recent changes to priority access programs are all about creating a level playing field for delivery workers, no matter which platform they use. By hitting the pause button on special incentives that give some couriers priority access to orders, businesses are making sure everyone gets a fair shot at delivering. Instead of relying only on big delivery companies, think about improving the one you already have and more options for your customers through your customized app. It's about giving everyone an equal chance to deliver and making things fair for everyone involved.

Leveraging Per Diem White Label App

Neighborhood restaurants must think about being tech-savvy right away in order to manage the changes. With no commission costs, Per Diem offers a cost-effective, adaptable platform for online ordering and delivery management. 

Streamline the Pickup Experience

Per Diem allows restaurants to create a branded app for streamlining pickups. Customers can place orders ahead of time, track their rewards, and receive notifications about their order’s status from confirmation to delivery. This convenient experience will keep customers coming back.

Regain Control of Delivery

For restaurants looking to avoid traditional delivery platforms, Per Diem also integrates with various delivery services, allowing businesses to facilitate deliveries on their own terms. Direct management of delivery gives them more control over their customers’ data and payment protection. 

A Custom Solution

Restaurants can also tailor the app’s look and functionality to match their brand. Options like curbside pickup and location finders provide added convenience for customers. For local eateries aiming to adapt to changes in delivery compensation and priority access, a customizable tech solution is invaluable.

An Affordable Ally

At a time when profit margins are tight, affordable solutions are essential. Per Diem reduces the commission fees for online orders placed through the white label app. This allows restaurants to keep a higher percentage of sales. An app tailored to a restaurant’s unique needs provides benefits without the high costs often associated with third-party delivery services.

Final Thoughts

The food delivery landscape in the city is evolving, but local restaurants can adapt to navigate the changes. Focus on optimizing your takeout and pickup options, which make up the vast majority of orders in the city anyway. Enable easy mobile ordering and a seamless pickup experience for your customers. While delivery companies adjust to new policies, you can get ahead of potential impacts by doubling down on serving your customers directly. The key is staying flexible and keeping the lines of communication open with your loyal customers. With some strategic adjustments, local restaurants can continue thriving even as the larger food delivery ecosystem transforms.

Navigating NYC's Food Delivery Changes: How Local Restaurants Can Adapt

Navigating NYC's Food Delivery Changes: How Local Restaurants Can Adapt
by
Soma Amir
by
Doron Segal
by
Tomer Molovinsky
by
Olivia Terenzio
by
Jessica Buckley
by
Ashley Rodriguez
March 25, 2020

TLDR 

Food delivery in New York City is changing as a result of a recent law that has increased the minimum wage for delivery workers and tweaked the tipping system. While these shifts may initially seem disruptive, here's the silver lining for local restaurants. Adopt mobile technology and optimize your setup for more pickups - more than 90% of orders in the city are already that way. You can survive these changes with ease if you provide customers with an easy-to-use mobile app that makes pick-up simple. 

Shifting Dynamics in Delivery Compensation

The law calls for an increase in the minimum wage for NYC delivery workers to pay delivery workers $17.96 per hour, which will go up to $20 by April 2025. This step shows the city’s commitment to fair compensation and supporting local communities. But there's more than one side to consider in this situation. Many delivery companies do not seem to be happy with this ruling and assert that the law will reduce the size of their delivery zones. 

In this situation, it's important for local restaurants and coffee shops, to adapt to this new compensation structure, as delivery platforms adjust fees and tipping processes to account for higher costs. Rethinking your online ordering and delivery strategy can help minimize the impact. Focusing on pickup orders, which make up 90% of transactions in NYC, provides an easy solution. Promoting your pickup options through social media, email marketing, and in-store signage encourages customers to opt for this convenient choice.

Focus on Pickup Orders and In-House Delivery

Given that the vast majority of orders are pickups, focusing on this trend benefits both shops and customers. Here’s how restaurants can encourage their customers to do more pick-up orders: 

  • Prominent In-Store Signage

Display pickup options and benefits at your storefront to catch the eye of walk-in customers.

  • Online Promotions

Offer exclusive discounts or promotions for orders placed directly through your website or app, incentivizing customers to choose pickup.

  • Efficient Order Notifications

Implement a robust notification system to inform customers promptly when their orders are ready for pickup, ensuring a smooth and timely experience.

  • Curbside Pickup Convenience

Enable curbside pickup services in your app, allowing customers to conveniently collect their orders without leaving their vehicles.

  • Loyalty Programs for Pickups

Create loyalty programs specifically tailored for pickup orders, rewarding customers for choosing this option consistently. 

Furthermore, In-house delivery provides greater control over the process and cultivates community bonds without having to rely on third-party delivery companies. 

Leverage Technology for Adaptability

Utilizing an app like Per Diem, a white-label ordering solution, equips you with an efficient system to adapt to these changes. Per Diem offers customizable online ordering, integrated with the Square POS system, that provides convenience for you and your customers. Technology partners that cater to your evolving needs will be key to navigating new regulations.

While delivery platforms adjust to policy changes, focus on what you can control. Pickup orders, in-house delivery, and leveraging innovative solutions demonstrate your adaptability.

Adjustments to Certain Priority Access Programs

Recent changes to priority access programs are all about creating a level playing field for delivery workers, no matter which platform they use. By hitting the pause button on special incentives that give some couriers priority access to orders, businesses are making sure everyone gets a fair shot at delivering. Instead of relying only on big delivery companies, think about improving the one you already have and more options for your customers through your customized app. It's about giving everyone an equal chance to deliver and making things fair for everyone involved.

Leveraging Per Diem White Label App

Neighborhood restaurants must think about being tech-savvy right away in order to manage the changes. With no commission costs, Per Diem offers a cost-effective, adaptable platform for online ordering and delivery management. 

Streamline the Pickup Experience

Per Diem allows restaurants to create a branded app for streamlining pickups. Customers can place orders ahead of time, track their rewards, and receive notifications about their order’s status from confirmation to delivery. This convenient experience will keep customers coming back.

Regain Control of Delivery

For restaurants looking to avoid traditional delivery platforms, Per Diem also integrates with various delivery services, allowing businesses to facilitate deliveries on their own terms. Direct management of delivery gives them more control over their customers’ data and payment protection. 

A Custom Solution

Restaurants can also tailor the app’s look and functionality to match their brand. Options like curbside pickup and location finders provide added convenience for customers. For local eateries aiming to adapt to changes in delivery compensation and priority access, a customizable tech solution is invaluable.

An Affordable Ally

At a time when profit margins are tight, affordable solutions are essential. Per Diem reduces the commission fees for online orders placed through the white label app. This allows restaurants to keep a higher percentage of sales. An app tailored to a restaurant’s unique needs provides benefits without the high costs often associated with third-party delivery services.

Final Thoughts

The food delivery landscape in the city is evolving, but local restaurants can adapt to navigate the changes. Focus on optimizing your takeout and pickup options, which make up the vast majority of orders in the city anyway. Enable easy mobile ordering and a seamless pickup experience for your customers. While delivery companies adjust to new policies, you can get ahead of potential impacts by doubling down on serving your customers directly. The key is staying flexible and keeping the lines of communication open with your loyal customers. With some strategic adjustments, local restaurants can continue thriving even as the larger food delivery ecosystem transforms.

Soma Amir

About the author

Doron Segal

About the author

Hey I'm Doron, the co-founder & CTO of Per Diem — a mobile app platform for restaurants. I'm also a dad and a husband. I love to travel and meet new people.I love creating things, and see people using the stuff I built.Prior to Per Diem I worked at Saildrone, OpenTable, Apple, Beats Music, Siemens.

Tomer Molovinsky

About the author

A second time founder with a passion for building products at the intersection of hospitality and technology. I've had the pleasure of launching reservation systems, mobile payment solutions, and loyalty programs at OpenTable and Resy, and witnessed how operators were losing a direct connection with their customers online. We built Per Diem to strengthen the relationships that businesses have with those customers, and to ensure that local businesses can thrive in today's economy.

Olivia Terenzio

About the author

Jessica Buckley

About the author

Ashley Rodriguez

About the author

Ashley is a freelance writer and podcast producer based in Madison, Wisconsin. She hosts a podcast called Boss Barista and writes an accompanying newsletter with full transcripts of each episode and articles about coffee and restaurant work. You can check out her work here (ashleyrodriguez.work/).

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