Third-party restaurant ordering and delivery platforms command ridiculously high commissions. 30% or more in some cases! Here's how they justify it: They source the customer. Although many consumers ordering through these platforms would order directly from the restaurant, they don’t. They would, if only it was easy and convenient.
The restaurant has less labor cost to service a guest who is ordering for pickup or delivery. A guest that is ordering for pickup or delivery results in less labor costs for the restaurant than a guest who is sitting down for table service. This holds true whether the customers order directly from the restaurant or through a third-party platform.
There's a real and very significant cost to perform delivery. Of course, that cost is significantly inflated by the one-to-one nature of third-party delivery. Each order requires a separate trip to the restaurant for pickup and delivery as opposed to sending multiple orders out for delivery together with a single driver (that would cost much less).
Business savvy restaurants are focused on turning customers who come from third-party platforms into direct connections. They continue to pay these profit-eating commission fees because they have discovered how to take advantage of the outreach these platforms provide. Make third-party platforms do the work for you and use them as vehicles to market your business. Put the spotlight back on your restaurant, so that your customers come back to you, rather than opening these apps. Here’s how:
Win-back Customers from Third-party Platforms with Promos
For orders received from third-party platforms, attach promo cards to each takeout bag with an ad for a one-time discount when they order directly through your restaurant’s commission free online ordering system. How many customers are willing to pick up their order for a 20% discount? It turns out, quite a few. Providing a 20% discount almost always results in a net gain for your restaurant compared to the commissions being charged by the third-party delivery platform. With this strategy, you have incentivized your customer to return and have led them away from the third-party platforms that take a significant chunk of the profit and stick you with hefty fees.
Continually Incentivize Customers to Order Directly Through You
As you receive these orders from the customers you have won back from third-party platform ordering, continue to insert promo cards that offer ongoing discounts to continue ordering direct. For many restaurants, the labor costs for online orders with curbside pickup are substantially lower compared to those of dine-in customers. An ongoing discount to encourage commission free online ordering for curbside pickup brings you repeat business that also yields minimized labor costs.
Utilize Technology to Digitally Connect with Dine-In Customers
Strive to keep your customers within a commission-free digital ecosystem, instead of losing customers to third-party platforms with high commissions. Implement digital solutions like contactless mobile ordering and payment where the customer can scan a QR code at the table, tap an NFC tag or simply browse to a website to view the menu, order and pay. For restaurants who find contactless mobile ordering and payments too progressive of a step for dine-in customers, they are turning to digital receipts as a highly effective way to digitally connect with their guests and deliver enticing promotions that encourage and facilitate direct repeat business. There are many digital solutions available for you today to fit your business’ operations and help sustain the connections you make with customers to ensure their return.
PayLink® provides businesses with a powerful mobile commerce platform that helps restaurants and retailers take orders online, create and manage promotional codes and digitally connect with in-store customers.
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