The Rise of Direct-to-Consumer and Owned Delivery Models: Opportunities and Challenges for Restaurants and Grocers

The food and grocery industries are in the midst of a digital transformation, with direct-to-consumer (D2C) and owned delivery models rapidly gaining traction. As consumer expectations for convenience, personalization, and seamless digital experiences continue to rise, restaurants and grocers are rethinking their reliance on third-party delivery platforms. The shift toward D2C and owned delivery is not just a trend—it’s a strategic imperative for brands seeking to capture more value, own the customer relationship, and deliver differentiated experiences. However, this evolution brings both significant opportunities and complex challenges.

Why Shift to Direct-to-Consumer and Owned Delivery?

1. Data Ownership and Customer Insights

Third-party platforms have been instrumental in expanding reach, but they often retain valuable customer data. By investing in owned digital channels—such as branded mobile apps, websites, and loyalty programs—restaurants and grocers gain access to rich first-party data. This data is the foundation for:

Personalizing offers and recommendations
Optimizing menus and product assortments
Forecasting demand and managing inventory
Building deeper, more loyal customer relationships

2. Profitability and Margin Control

Delivery via third-party platforms comes at a steep cost, with fees that can erode already thin margins. Owned delivery models allow brands to:

Reduce or eliminate commission fees
Control pricing and promotions
Experiment with new revenue streams (e.g., subscriptions, exclusive menu items)
Optimize fulfillment costs through innovations like curbside pickup and micro-fulfillment centers

3. Customer Experience and Brand Loyalty

Owning the delivery experience enables brands to ensure consistency, quality, and service that reflect their values. Research shows that a single poor delivery or pickup experience can prompt customers to abandon a brand’s app or service. Direct channels also allow for:

Seamless integration of loyalty programs
Real-time communication and order tracking
Tailored experiences across digital and physical touchpoints

Operational and Technological Hurdles

While the benefits are clear, building and scaling owned delivery is not without challenges:

Operational Complexity

Order Fulfillment: Ensuring order accuracy, freshness, and timely delivery is paramount. For grocers, this means robust inventory management and real-time visibility; for restaurants, it means integrating kitchen operations with digital order flows.
Last-Mile Logistics: Managing a fleet of drivers or partnering with local couriers requires new capabilities in routing, scheduling, and customer service.
Capacity Planning: Demand can be highly variable, especially during surges. Flexible infrastructure and partnerships are needed to scale up or down efficiently.

Technology Investment

Digital Platforms: Unified, cloud-native platforms are essential for integrating mobile, web, in-store, and delivery channels. These platforms must support real-time data, personalization, and omnichannel content management.
Data and Analytics: A comprehensive customer data platform (CDP) enables segmentation, targeted marketing, and rapid experimentation. Advanced analytics and AI can optimize everything from menu recommendations to delivery routes.
Automation: For grocers, micro-fulfillment centers and intelligent picking technologies can improve efficiency and profitability. For restaurants, smart kitchens and geofencing can streamline order prep and pickup.

Balancing Third-Party and Owned Channels

A hybrid approach is often the most pragmatic. Third-party platforms offer reach and convenience, especially in new or low-density markets. However, brands should:

Use third-party platforms to acquire new customers, then incentivize repeat orders through owned channels with exclusive offers or loyalty rewards.
Negotiate for access to customer data where possible.
Differentiate the direct experience with unique menu items, better service, or personalized engagement.

Frameworks for Build vs. Partner Decisions

When evaluating whether to build an owned delivery solution or partner with third parties, consider:

Customer Base and Density: High-density urban areas may justify investment in owned delivery, while lower-density regions may be better served by third-party partners.
Brand Differentiation: If the customer experience is a key differentiator, owning the end-to-end journey is critical.
Operational Readiness: Assess internal capabilities in logistics, technology, and customer service. Gaps may be filled through partnerships or phased investments.
Data Strategy: Prioritize models that maximize access to and use of first-party data.
Profitability Analysis: Model the costs and potential returns of each approach, factoring in technology investment, labor, and customer acquisition costs.

Real-World Lessons from Publicis Sapient’s Work

Publicis Sapient has partnered with leading QSRs and grocers to navigate this transformation:

A major UK grocer doubled its online order capacity in less than a week during the pandemic, leveraging agile technology and data-driven test-and-learn cycles to meet surging demand.
Global QSR brands have unified fragmented data and marketing systems, enabling real-time personalization and driving significant revenue uplift through owned digital channels.
Innovative restaurant chains have piloted smart kitchens, geofencing, and AI-powered analytics to streamline operations and enhance the customer experience across delivery, pickup, and in-store channels.

Best Practices for Success

Invest in a unified digital foundation that supports omnichannel experiences and rapid innovation.
Leverage data and analytics to personalize engagement, optimize operations, and drive loyalty.
Automate and streamline fulfillment with smart technologies, from micro-fulfillment centers to geofenced pickup.
Balance channel mix to maximize reach while building direct relationships with customers.
Embed privacy and security into every digital touchpoint to build trust and comply with regulations.

The Road Ahead

The shift toward D2C and owned delivery is a strategic imperative for restaurants and grocers seeking to thrive in a digital-first world. By owning more of the customer journey, brands can unlock new growth, improve profitability, and build lasting loyalty. The path forward requires bold investment, operational agility, and a relentless focus on the customer. Publicis Sapient stands ready to help organizations design and implement the strategies, platforms, and experiences that will define the future of food and grocery delivery.

Ready to transform your delivery model? Connect with Publicis Sapient to explore how digital business transformation can unlock your next wave of growth.