Episode 150 How to fight DoorDash’s new menu pricing policy

TChallenging DoorDash’s New Menu Pricing Policy: Insights from Restauranttopia’s 150th Episode

Welcome back, restaurateurs, to another blog post from Restauranttopia. Today, we’re highlighting the critical discussions from our milestone 150th podcast episode, focusing on DoorDash’s new menu pricing policy. This policy has sparked a great deal of debate, and for good reason. Many restaurant owners rely heavily on delivery platforms like DoorDash, and any change in their policies can have significant impacts on our businesses. This blog post aims to break down these changes, their implications, and how to navigate them effectively.

In the latest episode, our hosts Brian Seitz, David Ross, and Anthony Hamilton delve into DoorDash’s new pricing policy, offering a critical analysis of the impacts and sharing strategic ways for restaurant owners to respond.

DoorDash’s New Menu Pricing Policy

DoorDash, a major player in the food delivery platform market, has recently implemented a controversial menu pricing policy. The policy discourages restaurants from setting higher delivery prices compared to their dine-in prices. DoorDash claims that “inflated prices in the app are hurting sales and angering customers,” a statement that serves to boost its own profits while potentially undercutting local independent restaurants. Furthermore, the company has been warning operators that markups exceeding 25% may negatively impact their placement in the app. Conversely, those maintaining consistent prices across channels are promised enhanced visibility.

Implications for Restaurants

Our hosts highlight that this policy, while seemingly beneficial for customers, may place undue pressure on restaurant owners already dealing with thin margins. While consistency in pricing can be a good thing, it’s important to remember that delivery involves additional costs that need to be covered.

Strategies to Combat the New Policy

1. Stand for Fairness: Advocate for fair policies that take into account the additional costs of delivery. This could involve engaging with industry bodies or joining forces with other restaurants.
2. Customer Communication: If you decide to keep the prices the same, communicate the reasoning behind this to your customers. Transparency is key in maintaining customer trust and loyalty.
3. Diversify Delivery Platforms: Consider partnering with other delivery platforms that may offer more favorable terms, giving your customers more options.
4. Optimize Your Menu: Feature dishes that have higher profit margins and travel well. This can help offset some of the costs associated with delivery.
5. Promote Direct Orders: Encourage customers to order directly from your restaurant by offering incentives or loyalty programs. This could help reduce reliance on third-party delivery platforms.

Building a Plan and Moving Forward

Changes in the industry, while challenging, are not new. The secret to success lies in adaptability and resilience. The hosts of Restauranttopia recommend creating a comprehensive plan that addresses not just the new DoorDash policy but also other essential areas like customer retention, marketing, and revenue diversification.

The goal is not merely to weather the storm but to emerge stronger. With the right strategy, you can turn this policy change into a growth opportunity for your restaurant.

We hope this blog post has shed some light on DoorDash’s new menu pricing policy and provided actionable strategies for you to consider. For an in-depth discussion on this topic, be sure to listen to Episode 150 of the Restauranttopia podcast. We’re here to help you make your restaurant the best it can be. Stay tuned for more insights, and keep serving up success!