Majority of QSR, fast casual diners would pay up to $5 in delivery fees

Dive Brief:

Tillster Delivery Index, a survey of 2,000 QSR and fast casual customers, revealed that 83% of patrons would pay up to $5 in delivery fees.
Speed continues to be an important factor in delivery, per the report, with only 20% of diners willing to wait beyond 40 minutes for food delivery. One-third of customers would pay more for faster delivery.
A majority of diners (70%) said they would prefer a designated delivery fee for a restaurant to recoup their costs for delivery with only 10% saying they'd prefer higher menu prices and 20% reporting how the cost is added doesn't matter.

Dive Insight:

Delivery fees remain a contentious issue among restaurants, which are grappling with whether or not to offer delivery, and in what way. Many restaurants are moving toward delivery because it is popular among young consumers, can provide a new revenue stream and keep operations running when the weather keeps diners away. The findings of the Tillster report reveal that restaurants and delivery providers could have a bit of leeway when it comes to charging customers more, especially if the food can be delivered faster.

Some small restaurants and chains are struggling with how to adjust menu pricing to accommodate the service charges. Several large chains, such as Wendy's, McDonald's and Shake Shack, report the people who order delivery tend to purchase more food than in-store, which can help make up the delivery costs.

Delivery companies are also rethinking their fee structures. Uber Eats has adjusted its delivery fee schedule and now includes a small order fee of $2 for orders of $10 or less. A service fee is 15% of the customer's order and the delivery fee varies depending on the location and availability of couriers. The lower service fee could be beneficial since one of the main sticking points for restaurants was that Uber Eats would charge restaurants up to 30% for each order.

Another way restaurants and delivery providers could improve the delivery experience is by including order tracking. About 60% of customers in the Tillster study said they want tracking for their delivery order. Very few restaurants offer tracking save for Papa John's, Pizza Hut and Domino's, which offer tracking within their mobile ordering apps. Uber Eats, DoorDash and Grubhub offer order tracking, which could provide an added service for restaurants that don't have the infrastructure to include tracking.