The Conexxus Vision Group (CxVG) recently released its “Third-Party Delivery: A Double-Edged Sword?” Vision Report, looking at how c-stores can better implement third-party delivery services and reach more customers.

Jeff Keune, principal consultant at 4910 Consulting LLC, presented a case study on third-party delivery from his most recent role at American Natural, a six-store convenience retailer specializing in healthy food options, coffee, plant-based merchandise and fuel. Key takeaways for retailers looking to implement or enhance their existing third-party delivery services include:

• Exploring third-party delivery: The report highlights the increasing usage of delivery apps, especially among younger generations, with DoorDash leading the market. “These generations are used to everything being online, and I honestly do not believe that incremental price increase will change set-in behaviors because we’re training a whole generation of people to search online first,” remarked Kristina Anderson, chief service officer, Midwest Petroleum Company.
• Foodservice, party of three? Group members discussed the profitability and operational challenges of integrating third-party delivery services, including commission fees and system integration. “You’re already giving 20% of your top line to DoorDash. And you’re adding up four or five points with Vroom,” stated Lonnie McQuirter, director of operations at 36 Lyn Refuel Station, highlighting the financial tradeoffs.
• Ready to eat or ready to heat? Menu selection and tailoring offerings to maintain a unique brand identity is important while managing customer expectations regarding food freshness in delivery. Do consumers expect their food to be hot? Or do they expect to pop it in the microwave? There might be a path where instead of using expensive heat-retaining packaging, retailers opt for less-expensive microwave safe packaging that includes reheating instructions.