The Hidden Costs of Third Party Delivery Apps

The popularity of ordering food online has continued to increase since the pandemic, and it’s not hard to see why. Convenience is more important to customers than ever before. After a long day, many prefer to order food to enjoy in the comfort of their own home rather than traveling to a restaurant.

What’s more, customers who are concerned about the rising costs of living can use online ordering to enjoy their favourite dishes while saving money on extras such as drinks and transport.

When implementing online ordering, the first decision you need to make is whether to create your own platform or use a third party service. If you’re unsure which to opt for, take a look at the benefits of building a customised online ordering system and the hidden costs of using third party delivery platforms.

Retain Your Revenue

You need to be sure that offering food delivery will be profitable and provide a worthwhile return on investment.

Third party delivery platforms charge a commission of approximately 30% per order. This means that if a £50 order is placed, your business will only receive £35. When you consider the other costs associated with running your business, profit will be reduced even further. If offering delivery proves successful, you’ll incur costs for additional kitchen staff, equipment, and packaging, while only keeping 70% of the revenue from every order.

Creating your own online ordering system offers a more cost-effective way to grow your business. When you work with food2go, you’ll receive a complete online ordering solution for as little as £70 a month. No commission is charged, allowing you to retain all off the revenue no matter how many online orders you receive.

Control Your Customer Experience

Every customer who places an online order with you must receive the same high-quality food and customer service that they would in your restaurant.

A poor customer experience will damage the reputation of your business and put people off ordering from you again. Even if it’s not your fault, cold or damaged food will reflect poorly on your venue and could also lead to negative online reviews.

When you control your delivery service in-house, you can ensure that everyone knows the importance of handling orders with care and attention. This will ensure that food arrives piping hot and perfectly presented every time. Delivery staff for third party apps will often rush to try and fulfil as many orders as possible, whereas you can ask your staff to prioritise service standards and hire more delivery staff to cope with busy times.

If something does go wrong, direct ordering makes it easier for you to put things right and rebuild your relationship with that customer. You could arrange for additional items to be sent out or offer them a discount on their next purchase. Having your own platform also enables you to track customer orders and update your menu when dishes are unavailable.

With food2go, online orders are sent directly to your till. This allows you to manage all off your orders in one place and analyse any emerging trends.

Build Your Brand

Customers on third party apps will have to scroll through a list of your competitors to find your business, whereas your own branded app allows them to come to you directly.

Having your own online platform provides an exciting opportunity to design tailored loyalty and reward schemes. These are a great way to boost repeat business and develop a strong relationship with your customers. You can even send push notifications that keep your business front of mind and offer incentives such as discounts or double loyalty points on certain days.

Creating a branded app and responsive website is simple with food2go. Our solution also makes it easy to design and implement tailored loyalty schemes and push notifications.

Additional Features

Take advantage of other in-demand features with your own online ordering system. While third party platforms only offer delivery, food2go offers additional services including table ordering and collection.

This provides customers with more flexibility and provides a consistent customer experience whenever they engage with you. Table ordering also reduces the pressure on your staff as diners can place orders and pay their bill using their phone.

Book a Demo

Attract and retain more customers while avoiding high commission costs. Get in touch to book a free demo or take a look at how we’ve helped to grow businesses just like yours.