In a year of challenging circumstances, Omaha LoCo Delivery launched its operations on Feb. 8 as Omaha's only locally owned and operated restaurant delivery service and co-operative.

 

Conceived in 2020, Omaha LoCo Delivery was founded by Clay Seaman, a local leader in the delivery service and marketing industry, and Brian O’Malley, a lifelong restaurateur and culinary educator, both of whom realized the need for a local delivery service in Omaha to help restaurants survive the pandemic. 

 

Seaman says he came up with the idea for Omaha LoCo because he saw many restaurants exposing the predatory practices of national, third-party delivery services such as Grubhub and DoorDash. After Seaman and O'Malley were introduced through a mutual friend, they worked together to start Omaha LoCo as an alternative delivery option for local restaurants.

 

"We decided to establish a local delivery co-operative that preserves local food culture, supports local restaurants by charging fair commission rates, and serves as a sustainable alternative to third-party delivery services while maintaining local ownership as a pillar of its business model," Seaman says.

 

Formed as Nebraska LoCo Co-Operative LCA, O'Malley says Omaha Loco is based on a proven and sustainable model launched in Iowa City in 2017 by Jon Sewell with Chomp.delivery. The co-operative model allows restaurants to control the delivery process and earn a share of the profits, helping to pay rents and keep restaurant workers employed during COVID-19.

 

“Local restaurants are a critical component of our economic and cultural fabric,” O’Malley says. “Making sure they have the tools to thrive is essential to living in a vibrant city.”

 

Before beginning its regular food delivery operations, Seaman says Omaha LoCo pursued an opportunity to help restaurants and feed the community through the Douglas County Meal Program. In December 2020, LoCo Omaha received $500,000 in leftover CARES funds from Douglas County Commissioners to enlist local, independent restaurants in providing 7,000 family meals to Omahans in need during COVID-19. 

 

As part of the meal program, Seaman says LoCo Omaha initially provided 7,000 vouchers to food assistance programs, but evolved to also deliver bulk meal orders directly to food assistance lines and pantry programs in collaboration with local nonprofit partners. The program’s goal was to support local, independent restaurants while addressing unemployment for restaurant workers and meeting the increase of food insecurity issues brought on by the pandemic. 

 

"Adapting the delivery and ordering process to eliminate any fees to users- delivery, processing and taxes- proved to be a significant effort," Seaman says, "but it was completed in a week and 7,000 vouchers started their distribution through existing food assistance programs."

 

In addition, Seaman says Omaha LoCo quickly signed on 40 local, independent restaurant pilot members to create family meals for drivers to distribute to local food assistance programs. As Omaha LoCo general manager, Seaman personally contacted Omaha food pantries, churches and nonprofits to arrange meal deliveries. Food delivery recipients included Youth Emergency Services, Together, Heart Ministry Center, Bethlehem House and Project Hope. 

 

Seaman says restaurants were a big help throughout the program, with many creating cold meals that people could take home and heat. Many restaurants also cooked hot meals that families could consume immediately. Omaha LoCo drivers delivered these meals to organizations such as Omaha Housing Authority Towers and adult education programs at Latino Center of the Midlands.

 

"The participating restaurants stepped up, many preparing meals that could feed 6-12 people," he says. "Omaha LoCo estimates that well over 30,000 individuals received meals through the program."

 

Throughout the program, Seaman says many people expressed their appreciation for the meals, with one driver reporting that a mother with three small children was moved to tears when she received food. Additionally, many church pantry volunteers shared their gratitude for the meals, as they provided a boost to their pantry offerings. 

 

"We had an extra volunteer on hand to bring up the hot meals from our warming ovens to give to the clients along with their regular pantry distribution," says Jody Nunez, pantry coordinator for A Hand Up Food Pantry at First Presbyterian Church. "They were so grateful and excited and said 'thank you' over and over. Thank you to LoCo for thinking of this amazing way to help not only pantry clients but the restaurant community."

 

Following the program's conclusion in February, Omaha LoCo shifted to regular operations, signing up restaurants to join the service and adding their menus to the Get LoCo app. Seaman says the transition allowed them to focus on adding restaurants throughout the city while leaving options open to deliver more bulk meals in the future. 

 

"In the turn to regular operations, normal co-operative memberships were offered from an initial round of 60 authorized memberships," he says. "Restaurants don’t have to be a co-operative member to use the service. The technology and processes were shifted to handle normal delivery while maintaining the capability to support future meal programs connecting local, independent restaurants to community food assistance needs."

 

As co-op president, O'Malley says a partnership with Omaha LoCo is beneficial to restaurants because it provides them equity opportunities as members of the co-op board while allowing them to maintain customer data and gain a share of the profits. 

He says Omaha LoCo also charges lower commissions and fees than national services, which often take up to 30 percent in commissions from local independent restaurants. 

 

"Omaha LoCo is like the old-school farmer co-operatives Nebraska helped pioneer more than 100 years ago," O'Malley says. "There are no dues; the membership fee funds the start-up costs. The model is designed to be self-sustaining once it reaches scale in Omaha."

 

Unlike national services, Seaman says Omaha LoCo offers local customer service and charges a flat delivery fee that saves customers money as opposed to the higher costs associated with national apps. 

 

"By downloading the Get LoCo app, customers can enjoy their favorite food delivered by local drivers and support Omaha restaurants," he says. "Our service is a win-win-win-win -- restaurants, consumers, drivers and us."

 

 

"This Omaha LoCo co-op is a way to support local restaurants specifically, with much lower fees,” Malm says. “I'm happy to support it and I'm thrilled that something like this has come to the Omaha area."

To learn more about Omaha LoCo Delivery, visit the website and Facebook page.