Why Should a Restaurant Not Use Third Party Delivery Services

With the pandemic playing ruckus in almost every industry, the restaurant industry did not remain unscathed. Even as the world is embracing the new normal after the pandemic, restaurants are looking for new ways to cater to those who are still disinclined about dining in public places or fall under the vulnerable category.

If dine-in has been ruled out, the next option available is food delivery. Most restaurants have started offering online food ordering and delivery services. While some have smartly integrated this system into their own restaurant website and mobile app, others continue to seek the support of third-party food delivery services like Seamless, UberEats, Grubhub, etc.

Such third-party delivery platforms are definitely a convenient option. But, they do not do any good to a restaurant’s profitability motive.

Third-party delivery platforms charge 15-30% commission on average on every food order

Handling Food Orders

This depends on the third-party platform that the restaurant has partnered with. While some notify restaurants through email, others use custom-made tablets. This could be tedious for restaurant managers trying to streamline the delivery and dine-in orders and pass them onto the kitchen.

When an order gets missed, it is the restaurant that suffers with a one-star review. Also, delivery agents are not well-trained to handle orders. Their aim remains to achieve the maximum number of deliveries within a short time, leading to greater possibilities of order mishandling.

If there are complaints from customers regarding food spoilage or other issues, these platforms blame the restaurant for poor packaging and also charge an amount as a penalty to compensate the customer.

But, this problem would not arise if restaurants handled their own delivery. Food orders will also be delivered faster when restaurants do not depend on third-party services.

Huge Transaction Fees

Third-party food delivery apps charge an exorbitant commission rate of 15% to 30% that is drawn directly from the restaurant’s profit. Also, restaurants must pay the tax on the commission charged. Apart from this, they are also charged a transaction fee of 1% to 2% for every order with online payment. All these culminate in a loss of profit margins forcing restaurants to increase food prices. But, customers do not welcome this move.

Restaurants, therefore, need a cost-effective way to reach customers. An own website coupled with an online ordering system and mobile app is the best way to give good deals and discounts to customers without having to pay any commission to anyone.

No Customer Engagement With The Brand

This is the biggest drawback arising out of the usage of third-party delivery platforms. Although people order food from your restaurant, they become the app’s customers and not the restaurant’s. Customers make payments through the food delivery app and the food is delivered by an agent working for the app. So, there is a huge disconnect between the restaurant’s brand and the customer.

But, with one’s own restaurant website and ordering system, the restaurant gets access to vital customer data like name, phone number, email address, and ordering history. This data helps restaurants to create personalized marketing campaigns to enhance brand loyalty.

The Reputation Problem 

When customers face issues like late delivery, food getting cold or damaged, or wrong orders being delivered, the apps shift the blame onto the restaurants. This severely affects the restaurant’s brand reputation. Restaurants face the risk of getting a single star, bad reviews, or a social media backlash. Negative reviews can severely impact a small restaurant’s bottom line.

The Solution

Restaurants must always use their own online platform to allow customers to order directly from them and also complete the transaction with a secure payment. Restaurantify should be your top choice for free website creation. With us, you can build a gadget-compatible, customized website over which you have complete control.

The free website built using Restaurantify has the following features:

  • Aesthetic, customizable templates
  • Customizable menu
  • Online food ordering system
  • In-built blog management
  • Secure payment gateway

Get in touch for any digital marketing assistance in the restaurant industry.