If you own or run a takeaway restaurant, it's likely a good chunk of your business is given to you via an online food ordering portal, such as Just Eat or Deliveroo. You might even use many of them together.
Online food ordering portals are a no-brainer for takeaways offering food ordering, allowing them to accept new orders, increase their reach, and to access marketing power which would otherwise be simply impossible.
Yet, the majority of restaurant owners don't realise that these same portals can also end up making a huge un-necessary dent in the lifetime value of their online customers.
One of the biggest misnomers when it comes to food ordering portals, is that they generate more customers for your restaurant.
Whilst to some degree this is true, the reality is that such portals are set up to generate orders for your business, not customers.
An order may be fulfilled by you, but the really valuable asset to your business, the customer, still belongs to the food portal. It's a safe bet the exact same customer will return to the food portal to place any further orders.
Why is this such a big a problem?
Let's say you have, for instance, 200 regular customers who order with you every couple of weeks. Their average order value is £20. You're paying 15% commission on each order.
That's £1200 in commission every month, for customers who are ordering with you anyway, which cost the food portal nothing to acquire past the point of their first order!
What it comes down to then is a fair cost of essentially processing orders. Whilst £1200 commission for gaining new customers may be fair, for processing orders from your existing customer base every month, not so much.
A set monthly charge for an online ordering system is then much more reasonable - for instance, ours here at TAPN.TO is £75p/m (a £1125 saving in the above example).
Why not see how much you could save, by using our savings calculator?
So what's the solution - is it to ditch food ordering portals? We say... no, definitely not.
The best approach in our experience is to use food ordering portals, and the marketing power they provide, to your long term advantage!
Running your own online ordering website alongside such portals, provides the best balance, and the most convenient offering for customers alike.
Encourage those who order with you via a food portals, to order with you directly next time. A small incentive to do so goes a long way, and will pay off hugely in the long run.
An example of this would be to include a leaflet within the order, including a link to your own online ordering site, and offer a 10% discount on their first order.
We hope you find this blog post useful, and wish you the best of luck in leveraging food ordering portals to your restaurants success!