How to Start a Delivery App for Restaurants and Boost Revenue

January 5, 2026

Table of contents

Many restaurants begin offering delivery after noticing repeat phone orders and regular customers asking for food at home. The initial response is often positive, but the operational reality becomes clear within weeks. Order management grows complicated, delivery costs rise, and customer information stays fragmented across platforms.

As delivery volume increases, restaurants are forced to make decisions that affect margins, menu pricing, and staff workload. Without the right structure in place, delivery can create more friction than revenue.

A well-chosen delivery app for restaurants helps centralize orders, support direct customer relationships, and create a delivery setup that remains profitable as demand grows. This guide explains how to build that system step by step.

Quick Overview

  • Assess market demand and plan delivery strategy: Evaluate local delivery demand, competitor operations, and your restaurant’s capacity before launching.
  • Choose the right delivery model: Decide between in-house drivers, third-party logistics, or a hybrid approach based on cost, staffing, and operational control.
  • Optimize menu, packaging, and operations for delivery: Select travel-friendly items, invest in durable packaging, and streamline order management to maintain quality and speed.
  • Implement technology to centralize orders: Use a delivery app for restaurants that integrates with your POS, enables direct ordering, and retains customer data.
  • Launch, monitor, and scale profitably: Test delivery hours and menu, track performance metrics, engage customers with loyalty programs, and adjust operations as demand grows.

Start with a Thorough Market Research

Before adding delivery, restaurants need clear answers about demand, costs, and operational impact. Begin with your own restaurant data to review current takeout orders, peak hours, average ticket size, and items that already travel well. This information shows whether delivery can scale without disrupting kitchen flow.

Next, evaluate the local delivery environment to understand what customers already expect. Focus on factors that directly influence order volume and repeat business:

  • Delivery demand within your service area
  • Nearby restaurants offering delivery and their pricing structure
  • Delivery time expectations during lunch and dinner periods
  • Order minimums and fees that customers regularly accept

Additionally, pay attention to how competitors manage menu pricing and packaging for delivery. 

Choose a Delivery Model That Works for You

A delivery model can impact costs, staffing, customer experience, and daily operations. Restaurants should select an approach that fits order volume, available staff, and long-term profit goals.

Some restaurants manage delivery using their own drivers, while others rely on third-party logistics providers for fulfillment. Each option has practical trade-offs that should be reviewed carefully.

1. In-House Delivery

In-house delivery works best for restaurants with consistent order volume and the ability to manage drivers directly. It offers full control but requires ongoing operational oversight.

Key considerations include:

  • Hiring, scheduling, and training delivery staff
  • Vehicle costs, insurance, and fuel expenses
  • Managing delivery coverage during peak hours
  • Handling order issues and customer communication internally

2. Third-Party Delivery 

Third-party logistics providers handle delivery without taking a percentage of the order value. Restaurants maintain branding while outsourcing driver management.

Key considerations include:

  • Paying a flat fee per delivery instead of commissions
  • Avoiding the cost of hiring and managing drivers
  • Maintaining consistent delivery coverage during busy periods
  • Keeping the customer experience under the restaurant’s brand

Here’s a quick comparison between the two models:

In-house vs Third-party Logistics
Factor In-house Delivery Third-party Logistics
Staffing Restaurant hires and manages drivers Drivers managed externally
Cost Structure Ongoing labor and vehicle costs Flat fee per delivery
Operational Effort High during peak hours Lower internal workload
Brand Visibility Fully controlled Restaurant branding maintained
Scalability Limited by staff availability Easier to adjust to demand

Many prefer to combine both approaches based on order volume and staffing availability. A delivery app for restaurants helps manage either model by centralizing orders, coordinating fulfillment, and keeping customer data within the restaurant’s system.

Also Check: A Guide To Food Delivery Service For Restaurants.

Register Your Business and Secure Permits

Before accepting delivery orders, restaurants must confirm that their business registration and permits allow off-premise sales. Requirements vary by city and province or state, so local verification is essential.

In Canada and North America, restaurants typically need the following approvals in place:

  • A valid business license covering takeout and delivery
  • Food service or health department permits for off-premise food handling
  • Food safety certification for staff involved in preparation and packing
  • Liquor delivery permits, if alcohol delivery is offered
  • Commercial vehicle insurance or rider coverage, if using in-house drivers

Restaurants using third-party delivery drivers should also review contracts to confirm liability coverage and compliance responsibilities. Now, the next step is selecting technology to manage orders, streamline delivery, and keep operations running smoothly.

Recommended: Restaurant Business License Requirements: Types & Checklist.

Build the Right Technology Foundation

Efficient delivery operations depend on the right combination of systems to handle orders, route them to the kitchen, and manage fulfillment. Restaurants need technology that centralizes operations, reduces errors, and supports direct customer engagement. iOrders is designed to fit seamlessly into this stack, helping restaurants streamline delivery while maintaining control over orders and customer data.

Key components of an effective delivery technology stack include:

  • POS Integration: Connect your delivery system directly to your point-of-sale to avoid manual entry, reduce mistakes, and ensure accurate inventory and sales tracking.
  • Direct Ordering Channels: Allow customers to place orders from multiple sources, including your website, QR codes, and mobile devices. This ensures a smooth ordering experience and keeps all orders under your brand.
  • Delivery Management: Coordinate drivers, route orders efficiently, and track delivery status. A centralized system reduces errors, simplifies operations, and helps maintain consistent service quality.
  • Customer Data and Engagement Tools: Collect customer information, track order history, and enable targeted promotions. Effective data management supports loyalty programs and repeat business.
  • Analytics and Reporting: Monitor order volume, delivery times, and menu performance. Actionable insights help optimize operations and support scalable growth.

iOrders brings all these capabilities together into a single solution built specifically for restaurants looking to run delivery efficiently. You can book a demo here to get started!

Design a Delivery-Optimized Menu

A delivery menu should support speed, consistency, and cost control. Restaurants often lose margin by offering their full dine-in menu without adjusting for delivery conditions.

Start by treating delivery as a separate channel with its own performance criteria. Every item should justify its place based on demand, prep time, and delivery reliability.

When building a delivery-focused menu, evaluate items using these criteria:

  • Travel Stability: Choose dishes that maintain texture and temperature for at least 20–30 minutes.
  • Preparation Time: Prioritize items that fit within existing kitchen workflows during peak hours.
  • Ingredient Overlap: Use shared ingredients to control inventory costs and reduce waste.
  • Customization Limits: Reduce modifiers to lower error rates and speed up fulfillment.

Once your menu is built for delivery, the next step is ensuring orders travel well from the kitchen to the customer.

Also Check: Automatic Menu Ordering System for Hotels and Restaurants.

Set Up Packaging and Logistics

Packaging affects food quality, brand perception, and repeat orders. Restaurants should test packaging under real delivery conditions before launch. This includes temperature retention, stacking, and spill resistance.

Key packaging and logistics decisions include:

  • Packaging Selection: Match containers to menu items, not convenience. Separate hot and cold items when necessary.
  • Labeling Process: Label every order with item count, customer name, and delivery type to reduce handoff errors.
  • Driver Pickup Flow: Define where drivers wait, how orders are staged, and who confirms handoff.
  • Delivery Radius Planning: Set a realistic delivery range based on food quality and delivery time, not demand alone.

After logistics are in place, delivery performance depends on the people handling each order.

Recommended read: Top 22 Food Packaging Ideas to Elevate Your Brand.

Hire and Train Delivery Personnel

Restaurants using in-house drivers must treat delivery as a customer-facing role, not a support task. Drivers influence customer satisfaction as much as food quality. Hiring should focus on reliability and communication, not just availability. Training should be structured and repeatable.

Training programs should include:

  • Order Handling Standards: Proper bagging, temperature awareness, and verification before departure.
  • Customer Interaction Guidelines: Clear expectations for greetings, order confirmation, and issue handling.
  • Delivery Timing Protocols: When to wait, when to leave, and how to report delays.
  • Issue Escalation Process: Steps for missing items, address errors, or customer complaints.

Restaurants using third-party drivers should still define service expectations internally. Once your delivery team is in place, compliance and safety requirements need to be addressed.

Ensure Legal and Safety Compliance

Delivery introduces risks related to food safety, insurance, and liability. Restaurants should address compliance before accepting the first order.

Requirements vary by region, but most issues arise from overlooked details rather than missing licenses.

Key areas to review include:

  • Food Safety for Off-Premise Orders: Confirm that packaging, holding temperatures, and handling meet local regulations.
  • Insurance Coverage: Verify coverage for delivery activity, especially if using in-house drivers.
  • Driver Documentation: Maintain records for licenses, training, and safety acknowledgment.
  • Alcohol Delivery Rules: Confirm age verification and delivery restrictions if applicable.

Clear documentation reduces risk during inspections or disputes. Now, the next challenge is generating demand.

Also Read: Top Strategies to Get More Repeat Customers for Restaurants.

Launch Marketing and Promotions

A delivery launch should focus on customers who already trust your restaurant. Early adoption often comes from existing diners, not new discovery. Marketing should direct customers to channels you control and can measure.

Effective launch actions include:

  • Direct Customer Outreach: Notify existing customers through email or SMS with clear ordering instructions.
  • In-Store Promotion: Use signage, receipts, and staff prompts to highlight delivery availability.
  • Menu Messaging: Clearly state delivery hours, fees, and order minimums to set expectations.

Promotions create initial demand for delivery, while retention programs help stabilize revenue over time.

Build Customer Retention and Loyalty Programs

Delivery profitability improves with repeat orders. Restaurants should plan retention before focusing on acquisition. Retention programs work best when tied to direct ordering behavior.

Actionable retention tactics include:

  • Order-Based Rewards: Offer points or credits for repeat delivery orders.
  • Customer Data Collection: Capture email and phone details during checkout for follow-up communication.
  • Targeted Offers: Send promotions based on order history or frequency.

Once retention programs are in place, delivery operations should be tested, refined, and scaled carefully.

Also Check: Proven Food & Beverage Loyalty Programs to Boost Retention.

Test, Launch, and Scale Operations

Delivery should be tested before full expansion. Testing identifies operational gaps without overwhelming staff. Start with limited hours, a focused menu, or a smaller delivery radius.

During testing and scaling, review:

  • Order Flow Accuracy: Track missed items, delays, and staff bottlenecks.
  • Kitchen Load Impact: Assess whether delivery affects dine-in service quality.
  • Staff Feedback: Use frontline input to adjust processes quickly.

Testing and scaling delivery highlights how closely ordering, delivery, and customer data are connected. Instead of managing each area in isolation, restaurants can streamline operations by using an integrated platform like iOrders.

How iOrders Helps You Run Delivery on Your Terms

Once a restaurant sets up delivery, the real challenge is keeping it profitable and manageable as order volume grows. This requires a delivery app for restaurants that supports direct ordering, flexible delivery fulfillment, and customer ownership without adding operational burden.

iOrders gives restaurants a way to manage delivery through their own channels while maintaining control over pricing, branding, and customer relationships.

  • Commission-Free Online Ordering: Accept delivery orders directly through your restaurant’s website or app without paying commissions on order value. You control pricing, availability, and the entire ordering flow.
  • Website and QR Code Ordering: Guests can order for dine-in, pickup, or delivery through your website or QR codes, with menus and offers updated in real time.
  • Delivery-as-a-Service: Use your own drivers or connect with third-party logistics providers that charge a flat fee per delivery. The customer experience remains fully branded to your restaurant.
  • POS-Integrated Order Management: All orders flow directly into your POS system, reducing manual entry, staff errors, and order delays during busy periods.
  • Managed Marketing Services: Reach customers through targeted messages based on real ordering behavior, helping increase repeat orders from direct channels.
  • Loyalty and Rewards Programs: Offer rewards and incentives that encourage customers to order directly from your restaurant instead of third-party platforms.
  • Smart Campaigns: Trigger timely offers and reorder prompts using customer data, helping maintain steady delivery demand.
  • AI-Powered Review System: Manage and respond to customer reviews from one place using brand-aligned AI responses and clear feedback insights.
  • White-Label Mobile App: Provide customers with a restaurant-branded mobile app for ordering and payment, while retaining access to first-party data.

If you want to see how iOrders supports a delivery setup that stays under your control, book a demo today!

Final Thoughts

Starting a delivery service requires planning, operations, and a system that supports your goals without overwhelming staff. From choosing the right delivery model to optimizing packaging and training personnel, each step shapes the efficiency and profitability of your delivery operations.

The restaurants that succeed are those that maintain control over their orders, data, and customer relationships while keeping processes simple and scalable. Choosing the right technology is a critical part of that foundation.

iOrders helps centralize orders, manage delivery logistics, and retain ownership of your customers, all without commission fees. Connect with our team today and take the next step toward a profitable, manageable delivery system.

FAQs

1. How do I start a delivery service for my restaurant?

Start by assessing demand, choosing a delivery model (in-house or third-party), optimizing your menu for delivery, and selecting technology to manage orders efficiently. Clear planning ensures a smooth launch.

2. What technology do I need to run a delivery service for my restaurant?

You need a system that centralizes orders, connects to your POS, and allows direct customer interaction. A delivery app for restaurants like iOrders streamlines ordering, fulfillment, and customer data management.

3. Should I hire drivers or use a third-party delivery service?

It depends on order volume, staffing capacity, and cost goals. In-house drivers give full control, while third-party logistics handle delivery without commissions and scale easily. Many restaurants use a hybrid approach.

4. How can I ensure my delivery service for my restaurant is profitable?

Focus on optimizing menu items for travel, reducing packaging costs, controlling delivery radius, and managing labor efficiently. Direct ordering channels help avoid high commissions and retain revenue.

5. How do I build customer loyalty through a delivery service for my restaurant?

Offer rewards, incentives, and targeted promotions for repeat orders. Collect customer contact information and engage them through direct channels to encourage consistent ordering and long-term retention.

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