Why You Need Your Own Online Ordering And Delivery Platform

It Is Almost Impossible To Stand Out From the Competition

85% of all the food & beverage businesses have been listed on at least 1 third-party food delivery platform. That means customers have unlimited options. Healthy competition is good for any business, but third-party delivery aggregators can expose you to unfair competition. Some third-party aggregators are known to operate dark kitchens and give them preferred promotion at the expense of independently owned restaurants and cafes.

Additionally, third party aggregators prioritize their own branding over individual restaurants, making it difficult for small businesses to stand out and build a loyal customer base.

You Have Limited Access to Customer Data

Even if you succeed in receiving hundreds of orders per day through the third-party delivery platform, the customers do not directly interact with your brand. When customers use an online ordering service, the aggregator collects and retains valuable customer data. The data ranges from customer contact information and order history, to customer preferences and other application interaction meta data. The lack of or limited access to customer data makes it difficult for independent restaurants to create meaningful connections with their customers. It is also almost impossible for such food outlets to implement targeted marketing strategies. And while aggregators may promise to handle marketing and promotion for your restaurant, you cannot entirely rely on their bare-minimum efforts.

You Pay High Commission Fees

The biggest downside to using restaurant delivery apps is that service fees can outweigh the benefits. The monthly fees can sometimes be as high as up to 40%. Considering that the average profit margin on food lies between 30% and 50%, then the business operator gets close to nothing after deducting the running costs.

The high commissions negatively affect the competitiveness of the business, which can in turn force the operator to raise food prices in a quest to realize a profit. It also makes it difficult for the entrepreneur to invest in other areas of the business and eventual closure when the business is no longer sustainable.

You Have No Control Over the Delivery Quality and Customer Experience

Using third-party delivery services leaves you with little to no control over the delivery process. A restaurant cannot monitor the conditions under which food is transported, timely delivery, order accuracy, and the quality of customer service. Unfortunately, if any of these goes wrong, customers are more likely to blame the restaurant and not the food aggregator. This could lead to problems that can negatively affect customer satisfaction and hence diminish the possibility of repeat orders as customers switch to other restaurants listed on the aggregator’s platform.

Problems With Customer Loyalty and Retention

Working with food delivery apps limits your ability to differentiate your brand from competitors. This is especially the case because of the large number of options that customers have. Additionally, customers often choose where to buy based on convenience and promotions offered by competitors. The result is that even your loyal customers may be enticed by the discounts offered by other restaurants leading to a loss of potential revenue for your business.

You Pay For Your Own Customers

Now people prefer to avoid picking up phones, and they prefer to order online. When a third-party order aggregator is the only online ordering option in your restaurant, even your loyal customers will embrace the convenience and switch to this platform. That way, the restaurant/cafe will be charged a commission for orders submitted by loyal customers. The commission fees can significantly eat into the revenue for restaurants looking to introduce online ordering and delivery for the first time.

Increased Brand Control

Having your own online food ordering and delivery platform gives you complete control over your brand image, messaging, and customer experience. You can showcase your unique offerings, maintain consistency, and reinforce your brand identity, fostering stronger customer loyalty. Having your own online ordering and delivery platform may also enable you to streamline the order delivery process and experience.

Ditch the Commission Fees and Save on Costs

By bypassing third-party aggregators and their commission fees, you can significantly reduce costs and increase profit margins. With your own platform, you can implement a pricing strategy that aligns with your business goals and eliminate the need to compete solely on discounts and promotions. You can then use the revenue saved this way to invest in your business infrastructure and marketing efforts.

Build Direct Customer Relationships

Owning your online ordering and delivery platform allows you to establish direct relationships with your customers. You can collect valuable customer data, such as preferences and contact information, enabling personalized marketing campaigns, loyalty programs, and targeted promotions to foster repeat business. In addition, an owned online ordering platform enables you to track customer interaction metrics that you would otherwise not have.

Customization and Flexibility

A dedicated online ordering and delivery platform empowers you to customize the user experience to fit your specific needs. You can tailor the interface, menu options, and ordering process to enhance convenience and streamline operations, ensuring a seamless and efficient ordering experience for your customers.