DELIVERY RISKS: WHAT CAN GO WRONG
A delivery driver can cause bodily injury or property damage to a third-party.
A delivery driver can be injured; their vehicle can be damaged or stolen.
A guest can get sick from the delivered food.
Non-compliance with local regulations.
To mitigate these risks, operators must first identify how they will be delivering to their guests. Three standard options for last-mile logistics are:
- In-House Delivery, where restaurants hire their own drivers and vehicles may be provided by the driver or restaurant.
- Out-Sourced Delivery, where restaurants contract with a third-party to complete last-mile logistics.
- Co-operative Delivery, where local restaurants form a delivery co-operative together to create a shared delivery service.
If you have in-house or co-operative delivery:
Implement safety standards and regular training for delivery drivers. This can include providing safety gear, inspecting delivery vehicles, and establishing clear communication channels.
Designate a delivery captain to conduct pre-shifts safety checks to keep best practices top of mind.
For restaurants in NYC, review DOT Requirements for Commercial Bicyclists.
If you out-source delivery:
Interview the third-party on how they address quality control and guest service incidents.
Execute a contract with the third-party that includes hold harmless and indemnification clauses in your favor. This can protect your interests in the event of an incident caused by a third-party working on your behalf.
Obtain a certificate of insurance that provides proof of coverage and names your business entity as an additional insured on the third-party’s general liability policy.
Taking precautions and planning for safety can reduce the restaurant’s risk, protect delivery drivers, and improve the guest experience.