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Third-party delivery apps – the good, the bad, and the ugly

To stay competitive in the busy restaurant marketing landscape, many establishments are utilizing third-party apps to meet the demand for customer convenience. While customers love the accessibility that brands like Grubhub and UberEats provide, the restaurateur can often experience the headache of escalating food and operation costs using these services. These go-between apps may lead to new customers, but the commission charges are eating away at the bottom line.

The new consumer

Third-party apps have been widely adopted by millennial audiences loving the instant gratification of ordering via their smartphones. Currently, 60 percent of U.S. consumers order delivery or takeout once a week and 31 percent use these third-party delivery services at least twice a week for these orders. Ever-demanding lifestyles have created a need for delivery services that offer customers the food quality they want, but eliminate the time-consuming trip and wait they experience at the restaurant. Many of these apps do give wider exposure and create new customers, but there’s a downside that makes it hard for restaurants to stay profitable.

The reality of third-party apps

The issue with third-party apps is that they cut into restaurant profits with a commission charge of 15% to 30% on orders making it hard to break even on each sale. To add to the confusion, third-party apps fluctuate their pricing on an ongoing basis. For example, free delivery service for customers can result in an influx of incoming sales that can be confusing and overwhelming for staff. When not offering special rates, delivery services can be so costly that customers will order less and avoid items that carry higher profit margins like soda. Since there’s a variety of app options, many restaurants are feeling the need to work with several platforms to meet demand. This requires multiple in-store setups and a learning curve for each app used. And, in addition to high costs and management of different software, the delivery services for each app bring their own issues. Restaurants have no control of the delivery experience and are at the mercy of drivers they don’t know. Timeliness, warm food, and professionalism from delivery associates are important to a good experience and to gain repeat orders. If any of these are compromised, the customer often blames the restaurant and not the app service from which their order was placed leading to bad reviews online or via word of mouth.

What can restauranteurs do?

Restaurants can take back the delivery and takeout process using their own dedicated ordering app as the one Ordrslip provides. In fact, 70% of customers say they’d rather order directly from the restaurant knowing that their payment goes back to the establishment and not a third-party. An app from Ordrslip allows the restaurant to control the process and own the customer experience while giving the restaurant a branded look with streamlined functionality.

Ordrslip is built to work with your existing POS system, so it takes away the need for learning new platforms. Working seamlessly with Square, Clover, and Revel, Ordrslip provides daily deposits, robust reporting and simple setup for restaurants already using these popular solutions for their restaurant’s point-of-sale. And the best part? There’s no commission fee with every order. Owners pay a set monthly or yearly fee which eliminates commission-based pricing and increases revenue on every order made via the app.

Making the choice between a third-party app and your own custom app is a big decision for your business, but when the numbers stack up, it might be time to place ordering process back into your own hands using Ordrslip.

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