Cart is empty In today’s fast-paced world, apps like Uber Eats, Postmates, DoorDash, and Grubhub have become a big part of everyone’s lives.
Just a tap and customers get their favorite food at their doorstep – it’s that easy!
These apps are super handy and offer a lot of different places to order and explore.
They have also really changed things for restaurants. They can reach more customers and get more orders than before.
But there’s something hidden that we might not notice.
The apps take some money from the restaurants every time an order is placed.
And there are other costs too. All of this can be tough for the restaurants, even if they’re getting more business.
There have been some cases where restaurants have lost up to 30% of their sales in the commissions to be paid to these apps for orders.
Check out what TechCrunch has to say about this:
Pros and Cons of Third-party Food Delivery Apps
Pros:
1. Increased Reach and Visibility: Food delivery apps provide an open gateway for restaurants to expand their reach beyond physical boundaries.
This increased visibility exposes the restaurant to a broader customer range, potentially attracting more who might not have discovered the restaurant otherwise.
2. Seamless Ordering Process: Food delivery apps offer an effortless and user-friendly way for customers to place orders.
A few taps on a smartphone can connect hungry customers with their favorite meals from diverse places across their city. All of it at the comfort of their doorstep.
3. Enhanced Marketing Opportunities: Restaurants can leverage the features of delivery apps to run enticing offers and promotions.
Special deals and discounts can be showcased, luring in customers and establishing a loyal customer base.
4. Streamlined Payments: Both customers and restaurants benefit from the streamlined payment process facilitated by these apps.
Customers can securely pay online, while restaurants receive payments without the need for handling any physical cash.
Cons:
1. High Commission Margins: The convenience of food delivery apps comes at a price that is not visible at the surface.
The commission fees charged by these platforms can be more, cutting into the profit margins of restaurants.
2. Dependency on apps for orders: Relying only on delivery apps might feel easy, but it’s a bit like giving away control of your restaurant’s future.
Think about it: restaurants are agreeing to follow whatever rules and price changes the apps decide, and they don’t have much choice.
3. No direct access to customers which restricts them from direct promotions
Added to that, restaurants do not have any kind of direct access to the customer data that could have been used for a deeper analysis of their preferences, choices and more.
It’s like the restaurants’ loyal customers are not their own, which is not ideal for their growth.
4. Lack of Control over Delivery: While restaurants can ensure the quality of food preparation, they often have limited control over the final leg of the journey—the delivery.
This lack of control could lead to delayed or mishandled deliveries, impacting the overall customer experience and leading to a negative impact on the restaurant’s reputation.
Start Using Commission Free Restaurant Online Ordering System
What happens because of ordering via food delivery apps is that customers find it expensive to place orders with these apps.
So gradually, restaurants are opting to encourage customers to order directly from them on their websites, bypassing these apps.
By cutting out the middleman, restaurants aim to alleviate the financial strain associated with app commissions and fees. This shift prompts the end consumers to consider the balance between convenience and affordability in their dining choices.
To be precise, restaurants can choose a POS solution that offers online ordering solution as well.
Why Most of The US Restaurants Use Their Own Restaurant Online Ordering System
Many restaurants prefer to have an online ordering solution that is integrated with their POS solution.
It gives your customers the same comfort of ordering their favorite food but with less cost compared to the apps. The restaurants are saved from paying the hefty commissions and get direct access to their customers as well.
This online ordering could add some added cost to your current POS solutions, but it helps you centralize everything and also gives you more control over your operations and customers.
In the fast-paced world of food delivery, the battle between online ordering and dedicated apps is crystal clear. While apps offer convenience, the tide is shifting in favor of online ordering for several compelling reasons.
Simplicity Reigns Supreme: Online ordering through restaurant websites cuts the clutter of multiple apps and their updates.
If offers a direct route to your customers favorite meal in a more streamlined manner.
Cost-Effective Convenience: Opting for online ordering is like savoring a delicious meal without the hefty bill.
Restaurants are able to effortlessly eliminate steep commissions, and customers enjoy the same comfort without having to pay high prices for their favorite dishes.
Control and Connection: The shift to online ordering empowers restaurants with direct access to their customers.
By avoiding the middleman, eateries can foster stronger connections and retain control over their offerings.
Improved profit margins: Sure, incorporating online ordering into your existing POS system might add to the costs a bit, but the benefits outweigh the minor expenses.
Streamlined operations and enriched customer engagement make this investment a wise one and help you save more on your profits.
Fair and affordable pricing: Opting for a provider with upfront, clear pricing ensures that both restaurant owners and their valued customers aren’t caught off guard.
Online ordering definitely does not shoot high on commissions compared to the food delivery apps. It becomes a fair and affordable game for both the customers as well as the restaurants.
Priority1 POS comes with a top-notch and extensively built POS solution that offers online ordering as well. Explore our services or schedule a quick meeting with our team to know more!
Reach us out at sales@priority1-pos.com and let’s get your restaurant a perfect online ordering solution aligned with a robust POS solution.
