First-party delivery for restaurants

As customer expectations evolve, diners now demand more than just great food. Speed, reliability, and a personal touch define the hallmarks of a standout delivery experience. While third-party delivery platforms like Uber Eats and DoorDash offer accessible gateways for delivery services, they often come with a high delivery fee for customers and limited control for restaurants.

Enter first-party delivery: a model that empowers restaurants to manage the customer’s delivery experience directly, offering better service, greater customization, and stronger connections with their customers.

What is first-party delivery?

First-party delivery is a model where customers place a delivery order through the restaurant’s website or branded app, not through a third-party provider like DoorDash or Uber Eats. Customers using this model are usually loyal to the brand, choosing to dine or deliver from them frequently. Conversely, third-party delivery is perfect to attract new customers, those not from the area, or become part of the favorite choices of frequent delivery users. Both are typically used by restaurants, but there is a growing focus by brands on first-party.

Using the first-party approach, the restaurant controls the customer experience with their brand, retains the customer information within their loyalty program (if applicable), and enables the brand to market most effectively to their market with targeted promotions. The actual delivery operation is often performed by one of the third-party providers. Restaurant operators will likely use both third- and first-party delivery to maximize their sales, with many brands hoping to grow their first-party delivery channel significantly in 2025.

Benefits of first-party delivery

First-party delivery brings a range of advantages. While implementing this model requires an initial investment, the long-term rewards – both financial and in terms of customer satisfaction and brand control – often make it a worthwhile choice for restaurants.

Direct cost savings

One of the immediate benefits is the ability to avoid the high commission fees charged by third-party platforms. Restaurants can retain more of their revenue, allowing them to reinvest in other areas, such as digital marketing, menu innovation, staff training, or technology upgrades.

Personalized customer service

Restaurants gain the opportunity to build closer relationships with their customers. Whether it’s tailoring the ordering process to special requests or resolving complaints directly, this personalized approach fosters trust and loyalty.

Brand control

First-party delivery keeps the entire experience aligned with the restaurant’s brand identity. From the packaging to the communication style, restaurants can craft a cohesive image that resonates with customers.

Insightful data access

Direct management of orders allows restaurants to collect and analyze valuable customer data, including ordering patterns and delivery preferences. These insights can inform marketing campaigns, menu changes, and loyalty programs, ultimately driving growth.

Comparing first-party and third-party logistics

Restaurants using first-party and third-party delivery must consider their needs, resources, and goals. A third-party platform requires little upfront investment, making this option appealing for new delivery services, but ongoing fees can erode profits. In contrast, first-party delivery involves higher initial costs – such as technology – but provides greater control over time.

One major challenge restaurants face is managing revenue losses from third-party platforms, which can complicate operations. Tools like Delaget Recovery offer a solution by leveraging smart technology to track and dispute these losses, helping restaurants recover delivery from both first-party and third-party operations.

First-party delivery also preserves brand integrity by allowing restaurants to manage their customer interactions and align every detail with their standards. Additionally, it offers full ownership of customer data, which can be used for targeted marketing and improved service. By comparison, third-party providers often retain this data, limiting its value to restaurants. For businesses focused on growth and customer loyalty, first-party delivery is often the more strategic choice.

Taking the lead with first-party delivery

First-party delivery represents a powerful opportunity for restaurants to take full ownership of their customer experience and is usually complementary to their third-party delivery strategy. By adopting this model, businesses can deliver exceptional service, build brand loyalty, and drive long-term growth. While challenges exist, the combination of strategic planning, advanced technology, and a commitment to customer satisfaction makes first-party delivery a game-changing solution in today's changing restaurant industry.