The True Cost of Convenience: How Third-Party Aggregators are Eating into Your Profits

In the fast-paced world of the restaurant industry, convenience has become a top priority for customers. The rise of popular food delivery apps like Uber Eats, DoorDash, and GrubHub has made it easier than ever for diners to enjoy their favorite meals from the comfort of their own homes. However, this convenience comes at a steep cost for restaurant owners, who are seeing their profits eroded by the hidden fees and commissions associated with these third-party aggregators.

While partnering with popular restaurant delivery apps may seem like a quick way to boost sales and reach new customers, it's essential to understand the true costs behind these services. Let's break down the fees and commissions charged by some of the most popular food delivery apps:

1. Uber Eats

• Restaurant commission: 30% of the order subtotal
• Delivery fee: $2.49 to $4.99 per order (paid by the customer)
• Small order fee: $2 for orders under $10
• Marketing fee: Up to 5% of the order subtotal

2. DoorDash

• Restaurant commission: 20% to 30% of the order subtotal
• Delivery fee: $1.99 to $5.99 per order (paid by the customer)
• Service fee: 10% of the order subtotal (paid by the customer)
• Marketing fee: Up to 5% of the order subtotal

3. GrubHub

• Restaurant commission: 15% to 30% of the order subtotal
• Delivery fee: $1.99 to $4.99 per order (paid by the customer)
• Marketing fee: 5% to 15% of the order subtotal

To put these fees into perspective, let's consider a hypothetical order of $50 placed through Uber Eats:

• Restaurant commission (30%): $15
• Marketing fee (5%): $2.50
• Total fees: $17.50

The high fees charged by third-party aggregators can have a significant impact on a restaurant's bottom line. According to a study by the National Restaurant Association, the average restaurant profit margin ranges from 3% to 5%. With delivery apps taking up to 35% of the revenue, it becomes increasingly difficult for restaurants to remain profitable and sustainable.

Moreover, relying heavily on these platforms can create a dependency that makes it harder for restaurants to build direct relationships with their customers. When customers order through a third-party app, the restaurant has limited access to valuable customer data and insights that could help them improve their offerings and marketing strategies.

To combat the high costs of third-party aggregators and maintain control over their profitability, many restaurants are turning to in-house online ordering systems. By implementing a platform like Wilcu, restaurants can offer their customers the convenience of online ordering while keeping more of their hard-earned revenue.

With Wilcu's menu ordering system, restaurants can easily set up their own branded online ordering website and mobile app. Customers can browse the menu, place orders, and pay directly through the platform, without the need for a third-party intermediary. This direct approach allows restaurants to avoid the high commissions and fees associated with delivery apps, while still providing a seamless ordering experience for their customers.

In addition to cost savings, in-house online ordering offers several other benefits for restaurants:

1. Greater control over the customer experience: With a direct ordering platform, restaurants can ensure that their brand, messaging, and customer service are consistent across all touchpoints.
2. Access to valuable customer data: By owning the ordering process, restaurants can collect and analyze customer data to inform their menu decisions, marketing strategies, and customer retention efforts.
3. Increased customer loyalty: When customers order directly from a restaurant's website or app, they are more likely to develop a sense of loyalty and connection to the brand.

Wilcu's restaurant order online software is designed to be user-friendly and customizable, allowing restaurants to tailor the platform to their specific needs and branding. The system integrates seamlessly with existing POS systems and kitchen workflows, ensuring a smooth transition and minimal disruption to operations.

Many restaurants have already made the switch to in-house online ordering and are seeing significant improvements in their profitability and customer relationships. For example, Green Chili, a popular Albuquerque-based restaurant chain, implemented Wilcu's online food ordering system and saw a 20% increase in online sales within the first three months. By avoiding the high commissions of third-party apps, Green Chili was able to keep more of their revenue and reinvest it into their business.

Similarly, New York City's iconic pizza joint, Joe's Pizza, adopted Wilcu's platform and experienced a 15% boost in average order value. By offering customers a branded, user-friendly ordering experience, Joe's Pizza was able to encourage larger orders and upsell add-ons like drinks and desserts.

As the restaurant industry continues to evolve and adapt to changing customer preferences, it's becoming increasingly clear that relying solely on third-party aggregators is not a sustainable long-term strategy. By implementing an in-house online ordering system like Wilcu, restaurants can take control of their profitability, build stronger customer relationships, and position themselves for success in the digital age.

If you're a restaurant owner looking to break free from the high costs and limitations of popular food delivery apps, now is the time to explore the benefits of in-house online ordering. With Wilcu's restaurant order online software, you can provide your customers with the convenience they crave while keeping more of your hard-earned revenue.

Don't let third-party aggregators eat into your profits any longer. Take the first step towards a more sustainable and profitable future by scheduling a demo with Wilcu today.