Disclaimer: This merchant was compensated for their participation in this testimonial.
Coyo Taco opened in 2015 to serve fresh Mexican street food in Miami's vibrant Wynwood neighborhood. Co-founders Alan Drummond and Sven Vogtland met while working in hospitality in the Virgin Islands and discussed opening a restaurant of their own. Vogtland brought on chef Scott Linquist, and together the trio launched Coyo Taco, named after Drummond's hometown of Coyoacan, Mexico.
Today, Coyo Taco has five locations in South Florida and six internationally (and counting) across Portugal, Paris, Panama, and the Dominican Republic. Coyo Taco abides by the philosophy of todo fresco, or "everything fresh." They smash guacamole to order, make homemade tortillas on-site, and mix margaritas and agua frescas from scratch. And two of Coyo Taco's locations feature a "secret" lounge where DJs play most nights, helping the restaurant become the buzzworthy hotspot it is today.
"We're very fortunate that we had long lines on our opening day and it's stayed that way for about ten years," explained Vogtland. "I think our success is due to just understanding Miami and what makes it tick, and what it needed at the time. Music plays a big role, our food is spectacular, and we do cool events — all the stars aligned for us and I'm grateful for that."
The challenges of in-house delivery
When Coyo Taco first opened, the team managed deliveries in-house. "It was challenging," Vogtland said. "Finding drivers, taking orders, the phone constantly ringing. Human error was a big issue, as was making sure drivers showed up on time so the food wasn't cold."
Once third-party delivery became available in Miami, the Coyo Taco team was happy to outsource their delivery business: "When third-party delivery came to our market, it was a game-changer."
They initially partnered with several platforms, but found that at the time in 2015, DoorDash's market share in Miami wasn't comparable to other partners. As a result, Coyo Taco left DoorDash and went exclusive with another third-party partner.
However, the Coyo Taco team began having negative experiences with their exclusive partner. "We were having delivery time issues. And consumers were getting hit with hidden fees that made us look like we were an expensive product, when it really was the third party tacking on additional charges," Vogtland recalled.
Coyo Taco decided to end their exclusivity and again partner with multiple third-party platforms — re-signing with DoorDash in August 2023.
A revamped DoorDash partnership with impressive results
Coyo Taco needed to ensure a positive experience for their delivery customers. "When consumers order online from third parties such as DoorDash, we really want to serve them the best quality in the fastest time we can, so they continue to come back," Vogtland said.
"We moved away from DoorDash briefly and are extremely happy to be back. DoorDash's market share has grown tremendously and our sales with DoorDash far exceed every other third-party delivery platform right now."
Coyo Taco uses DoorDash Marketplace for pickup and delivery, as well as Online Ordering to set up online ordering from their own website. "[Online Ordering] is just another way to make the consumer have a seamless transaction with us," explained Vogtland. "They can go on our website and order, which makes our customers' experience easier."
Orders via Online Ordering — where instead of a commission rate, merchants pay 2.9% of the total transaction amount + $0.30 per order — now makeup nearly 30% of Coyo Taco's DoorDash sales, further improving their off-premise profitability. By simply adding an "Order Now" pop-up to the Coyo Taco homepage, their Online Ordering sales grew 200%.
The team uses DoorDash marketing tools such as Promotions — including offering a percentage discount after guests hit a minimum spend to increase order sizes. To boost sales at their suburban locations and reach students at nearby colleges, Coyo Taco ran a promotion offering 15% off DoorDash orders during finals month. The five-week campaign saw a 33% increase in week-over-week sales and 27% increase in new customers at those locations.
"The marketing that DoorDash provided has been spectacular. It really helps us as a restaurant and a brand, getting our name out in the community."
They also experiment with Sponsored Listings, or ads to boost Coyo Taco's visibility in the DoorDash app. Their Sponsored Listings campaign, launched in November 2023, has already seen a 6X return on investment (ROI), driving $4,000 in sales in the first week.
Vogtland even uses DoorDash when he orders delivery food for himself. "I've switched over to DoorDash when I order food in my personal life," he said. "It's just such a better platform, with so many better options and quicker delivery times."
Driving incremental revenue with DoorDash
For Coyo Taco, the biggest benefits of partnering with DoorDash are incremental sales and marketing support. "It's new sales, and it increases our top-line revenue," noted Vogtland. "It brings in new and repeat customers who don't want to travel to our locations. In some stores, DoorDash is 35-40% of our total revenue for that store. That means we have 40% more sales in some stores because of DoorDash."
"We've found third-party delivery to be very profitable. The increase in top-line sales really helps us out with economies of scale across all of our locations."
The additional revenue from DoorDash helps Coyo Taco maintain profitability in their delivery business. "I'm very happy for our partnership and I can't speak highly enough about what DoorDash has done for us in the time that we've been back with them," said Vogtland. "I'm their number one fan."
Up to 40%
of Coyo Taco's sales in some stores come from DoorDash
6X ROI
from Sponsored Listings marketing campaign
33%
increase in week-over-week sales from Promotions campaign
4 ways Coyo Taco optimizes DoorDash operations for efficiency
The Coyo Taco team took a few steps to improve their delivery operations and make the most of their DoorDash partnership:
High-quality menu photos: Vogtland emphasizes the importance of putting their best foot forward in delivery menu photos. "As a consumer, when I scroll through menus and something really catches my eye, that's what I'm going to order for dinner that night," he said.
Designated pickup area: Creating a designated pickup area with clearly marked signage helps delivery drivers know where to go to pick up their orders. "We're building third-party delivery pickup sections, where it's just a focused space for drivers to come in and grab orders," said Vogtland. "We're trying to streamline that process as much as possible."
POS integrations: Coyo Taco integrates DoorDash with their Toast POS system to avoid having to manually print separate tickets for delivery orders and ensure a seamless process for their kitchen staff.
Store layout: The Coyo Taco team reviewed their restaurant kitchen layout to optimize the flow of staff, guests, and delivery drivers. "We're building out the stores differently now because of DoorDash," said Vogtland. "We've created separate entrances for drivers, cubbies for takeout orders, and have a staff member there to manage the handoff."
"Delivery is such a big part of our business that we're modifying the way that we build our stores. So when the driver arrives, the food is out fresh and hot and they can take it straight to the consumer as quickly as possible."
Staying nimble and creative in a changing industry
Looking ahead, Coyo Taco plans to open new locations in Miami and around the world, including their first restaurant in Colombia. Vogtland will also continue to prioritize marketing, finding ways to increase third-party delivery sales through creative campaigns and promotions.
"We have a lot of different things in the works for 2024 on the marketing side," Vogtland said. "We're working hand-in-hand with the DoorDash team to come up with marketing ideas, like new promotions and limited-time offers."
Vogtland believes delivery will continue to grow: "I think that delivery is the future, and streamlining it is going to be beneficial for stores."
The Coyo Taco team is also testing out ghost kitchens in some of their international markets. "It makes sense to open ghost kitchens where drivers could pick up in neighborhoods that are far away from our brick-and-mortar store," he explained. "It's something we're looking at domestically as well."
Ultimately, Vogtland understands the importance of adaptability in the hospitality industry: "We're trying to just stay creative — always ready to pivot with the market."
