bake - March/April 2020 - 6

third-party

department
management

In today's world, where Amazon delivers everything imagin-

says Taylor Nicholson, co-founder. "Cupcakes across the board

able in 48 hours and online grocery shopping has become a

are our top-selling item, then sandwich bread, specifically keto

regular practice, bakers have to follow suit if they want to stay

bread, and then pizza crust."

current. That means offering delivery, which can look two dif-

She says the busiest delivery sales one of her stores has had to

ferent ways. Bakers can invest in their own drivers and vehicles

date is 11 orders in one day, but it has a lot of repeat customers

to control the entire process, or they can join up with a third-

who consistently order through the food delivery service as well.

party delivery company like DoorDash, Uber Eats, GrubHub,

There are several reasons why a baker would want to offer

Postmates or Caviar. The latter is a category growing by leaps

third party delivery. First, you don't have to invest in your own

and bounds.

fleet of delivery vehicles and all that comes with it, such as hiring

According to Second Measure, a San Mateo, California-based

and paying drivers and the cost of gasoline and insurance. Nich-

technology company that analyzes purchases to study con-

olson says the traffic around the DFW area is so terrible, many

sumer behavior, sales in the meal-delivery industry grew 41%

customers specifically use the online delivery service so they

year-over-year in 2019. DoorDash has been the leading delivery

don't have to navigate it. At Unrefined, traffic was the main rea-

platform since May 2019, and it increased its lead yet again in

son the company never considered handling delivery on its own.

January, capturing 38% of U.S. consumer meal delivery sales

Second, weather can drive online delivery sales. If your store

during the month. In second place is GrubHub at 31%, followed

is in an area where weather causes problems, delivery allows

by Uber Eats at 20%.

sales even when customers can't or don't wish to get out on

While these platforms and delivery stats cover all meal op-

their own. Third, statistics prove that delivery is here to stay. A

tions, bakers see this as an opportunity for increased sales.

quick glance at the DoorDash website shows that the company

Take Unrefined, a bakery in the Dallas/Fort Worth area with

does over 800,000 deliveries per day. According to a study by

seven retail locations. The company has been using DoorDash

Mintel, 87% of American who have used third-party delivery

for four years with delivery available from all seven locations.

services say it has made their lives easier, with roughly a third

"Our most successful third-party delivery service is DoorDash,"

of these using these services at least two times per week.

MEAL DELIVERY JANUARY 2020 SHARE OF SALES
Grubhub DoorDash

Uber Eats Postmates

New York City

20%
Chicago

15%
29%

14%

38%
Dallas-Fort Worth

23%
32%

9% 58%
Washington DC

41%
Atlanta
14%

29%

44%

12%
16%
Philadelphia

29%

54%

6%
18%

40%
39%

37%

33%

12%
52%
Houston

22%
Miami

15%

16%
39%

9%

IMAGE: DOORDASH, GRAPH: SECOND MEASURE

66%
Los Angeles

06 < MAR-APR 2020 | bakemag.com

Bake_Mar-Apr20.indb 6

3/26/2020 2:21:27 PM


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