Delivery vs Take Out: the Perks of Opting for Takeout with Ritual

While the allure of having your favourite meals delivered to your doorstep is undeniable, there's a charm to the simplicity and advantages of opting for takeout. In this blog post, we'll delve into the intricacies of comparing delivery and takeout, with a particular focus on why takeout, especially through the Ritual app, emerges as the superior choice.

Delivery Fees (...and More Fees)

The most obvious cost associated with food delivery apps are their fees. Ordering food for delivery comes with additional fees, including delivery charges, service fees, and sometimes even menu markups. When you order delivery, you pay a premium for convenience and The New York Times found that menu markups on popular delivery apps are up to 91% more expensive than what you would pay in-store⁺.

Fees at a Glance

Let's round up some of the industry standard fees and added costs associated with food delivery apps:

1. Menu Markups: The first is the menu item markup, which many restaurants practice in order to recoup revenues lost due to service fees. These fees are often “hidden” and can inflate menu item prices by as much as 40%.
2. Service Fee: Next is the service fee demanded by the delivery app provider, which is often about 15% of the order's value. While some apps have no cap on potential service fees, other popular services limit service fees to no more than $4.00.
3. Delivery Fee: Third is the delivery fee, which often scales by distance and one's proximity to the restaurant. Some platforms offer delivery fees as high as $6.99 if you're at the end of the restaurant’s delivery radius.
4. Small Order Fee: In some cases, this fee is charged to make small transactions worthwhile to fulfill. A $2.50 fee may be charged if your order subtotal is below a certain amount.
5. Regulatory Response Fee: Regulatory response fees are instated when a local or state regulation leads to increased operating costs for delivery apps. They are flat fees that vary based on region and currently range from $0.10 to $3.40 on DoorDash.
6. Other Fees: Some jurisdictions have imposed regulations that require food delivery apps to tack on additional fees such as the “CA driver benefits fee” in California, which can range from $0.50 to $2.50 depending on the service provider.
7. Restaurant Donation: we are 100% for supporting local restaurants, but there’s something insincere about a multi-billion dollar tech company charging an unliveable commission rate and then asking their users to donate to support the struggling restaurant. We think a far better approach is to have a model that is profitable for restaurants.

The Perks of Pickup

For those looking to be more health conscious, choosing takeout with Ritual aligns perfectly with getting more steps in. Walking to pick up your order is a simple and effective way to incorporate physical activity into your day. By making takeout a part of your routine, you not only enjoy a delicious meal but also contribute to a healthier, more active lifestyle. It's a win-win situation.

Another common concern with food delivery is the potential compromise in the quality and freshness of your meal. Shaken up and cold food are common gripes. Takeout, on the other hand, allows you to enjoy your meal at its peak freshness.

Ritual's efficient order management system ensures that your food is ready for pickup at the specified time, minimizing the time it spends in transit. Whether it's a piping hot pizza or a fresh salad, your takeout order arrives in better condition.

In the ongoing debate between delivery and takeout, the advantages of opting for takeout are obvious. Not only does takeout save you money, but it also encourages outdoor activity, contributes to a healthier lifestyle, and ensures that your food arrives in a better state. Our commitment to user experience and convenience makes takeout a seamless and enjoyable option for those seeking a well-rounded approach to mealtime.

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⁺Information paraphrased from “Up to 91% More Expensive: How Delivery Apps Eat Up Your Budget” by The New York Times

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