Restaurant Online Ordering: The Good & The Bad with 3rd Party Companies

How important is online ordering for your restaurant? A study published by QSR Web found digital ordering (aka online ordering) is increasing 300% faster than dining in. GrubHub found that restaurants last year using online ordering grew their takeout revenue by 30%.

Even with the benefits, only six out of every 10 restaurants are using online ordering. So if you haven’t already started online ordering for your restaurant, it’s time to. But before you start, here’s what you need to know about the types of platforms available.

3rd Party Online Ordering Platforms

GrubHub, Eat24, and UberEats are just some of the companies out there that offer online ordering for restaurants. Whether it’s from an app or website, it’s an easy way for customers to find your restaurant and order.

Pros

  • 3rd party platforms are a great marketing tool to grow your customer base. A study published by orderTalk reveals 79% of millennials (ages 18-34) use online ordering, and 50& of adults (ages 45+) use it too.
  • A study by PMQ found 67% of customers who have used online ordering visit that restaurant more frequently than customers who have not.
  • GrubHub discovered last year that restaurants using online ordering grew their takeout revenue by 30%.

Cons

  • Any changes to the menu (i.e. price change) must be done with a call to the third-party company. So the more platforms you use, the more phone calls you’ll have.
  • Orders from third-party companies are sent by fax, call, or on a separate device (tablet). They will not send right to the point-of-sale (POS) unless your POS company has a partnership with Chowly or ItsaCheckmate.
  • It can become costly, as each third-party company has a different pricing structure. The chart below is an example of a restaurant that does 400 orders / $5,000 revenue monthly, and the estimated cost using three different companies:

Conclusion:

It’s more likely than not that your customers are already using a third-party company for online ordering. They are a great marketing tool for restaurants, but it can create challenges if you receive a high volume of orders. Every restaurant is different, so if you have questions or not sure where to start, email or text me and let’s connect.

 

Sources:

https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic
http://www.ordertalk.com/wp-content/uploads/2017/08/orderTalk-Releases-Millennial-Research-Report-FINAL.pdf
https://www.businessinsider.com/sc/online-ordering-helps-restaurant-business-2015-10
https://www.linkedin.com/pulse/how-third-party-online-ordering-sites-could-hurting-your-boomhower/

 

%d bloggers like this: