My friend, you are asking about partnering with three companies of different Core Values. While admittedly all of them create some value sometimes, they encourage to have a delivery order button on your private website, This is nothing but short of back channeling not only to make substantial commission from your sales, but also to rob you of your most valuable asset, "Customer Information".
Also, Now you do not have to worry about which one you do business with as they have created their own network, so an Uber driver shows up to pick up an order for Doordash, the Doordash driver shows up to pick up for Slice and on and on....
Do you have 30% NOI on each order to give these guys up to 30% from the top?
They made it big during the pandemic, now they are scrambling to modify and adapt their business models to keep their shareholders happy.
They are only good to generate enough revenue to "fill in the blanks".
I work with hundreds of restaurants on a daily basis. The answers are mixed from, "I hate the commission rate...." to "Love it, saved my business during this hard time...).
As with recent changes the Coronavirus has brought upon, there are ways to be successful in this industry and still make money.
For example, understanding what makes you rank higher on these delivery apps against other cuisines. It's not simply good ratings and price. Delivery apps will look at how quickly you can produce food for their user/customer base.
If you don't have some sort of automation in place, you are already starting behind. There are tools and data that you can empower your restaurant with to increase your win rate on these apps. Or you could be that low percentage where, demographically people don't use those delivery apps. Doesn't happen very often though.
it works well and customers definitely love the convenience. It is expensive and not only are you sharing your profits with the mentioned companies but you are also spending more on to-go containers. You have to make sure is packaged correct. I didn't want to do it but in reality if you want to compete with everyone out there you have to do it.
Business from Camp Hill, PA
Answered on May 31st, 2019
This is a sore subject. I'm fighting to get Slice app off our Google page. They just put a link on your page without permission. We have our own Online ordering at a low monthly fee. You partner with Uber its around 40% and they pickup the food. We work with GrubHub and it's up to 20% we deliver it. They are after us all the time to reduse our delivery fee, delivery minimum, offer specials. Its Bullshit they want, want and want more and more from the restaurant. I told the salesman to come get the keys to the shop, we aren't making money from them. Doordash hacked our Google page awhile back and got them removed. It's something you need to decide. All these people want is push a button on their phone to order not having a clue what these 3rd party sites cost the little guy. We try and get all GH customers to order from our site. It has basically destroyed the Pizza shops I think.
We use Grubhub, Caviar, Amazon, & Postmates. They all have their pluses and minuses. Grubhub has the highest fees, but they do well promoting their service and we tend to have the highest volume from them. Their back office is nice because you can update your entire menu from anywhere. The biggest issue I have had with them is getting the delivery drivers here on time during busy rush times. After many complaints their customer service team things have gotten better, but we tend to wait before firing their orders because of this. All in all Grubhub has some of the best features (back office, promotions), but some of the worst problems (price, on time delivery).
Caviar and Amazon are good and the fees are a bit lower, but we don't do anywhere near the volume we do with Grubhub. Rarely have issue with getting drivers here on time. I just wish their marketing and promotions we a little more on point like Grubhub. Also changing the menu is a hassle as you don't have direct access to this--you have to submit a tedious form or wait on hold to talk to someone live. We would include a lot more items if this back office feature was available.
Postmates might turn out to be my favorite. We haven't been with them for long, but their fees are much lower than Grubhub, give you the ability to edit your own menu, and you can set the prices differently than your normal menu so you can make up some of the percentage they take. The other services put in the contract that your prices must match your in-house menu. Their back office is very easy to navigate and has all the functions that Grubhub has except you can't attach pictures to each menu item yourself. Also the drivers have shown up in a timely manner. You have the ability to set your own promotions and like Grubhub we are able to have our full menu updated daily. I also like their tablet setup the best and the data and reports that it gives you at the end of the day.
Haven't partnered w/ doordash, but I am wary of them based on the orders they have placed from us so far. They have some version of our menu posted, but it tends to be outdated. Read some reviews of them and it has not been impressive thus far so we'll see if they are still around in a year or two.
we haven’t partnered with door dash but they’ve ordered from us for customers. There were a few times they’d order and not come for the food they ordered. Uber eats would have been nice but their sign on fee is $350 + 30 % of sales the submit. I believe they’re the only delivery service that charges this much. We use Waitr and they’ve been great, they give your restaurant a free photo shoot, their fee is 25% of the sales they send you. I don’t have experience with grub hub
We have couriers to make deliveries for us and charge the customer whatever the courier charges us. Because there is not much profit to play with in boxed lunches and baked goods. Paying the order/delivery service the high percentage they want would not work for us. Maybe if were just trying to get our name out there, it might be different and we could think of it as a marketing cost.
As a new business this type of partnership helped us tremendously in advertising and putting our name out there for new customers to try especially from outside of our own delivery area. It does cost the business and puts a strain on the profit, it’s like having an extra full time employee. For an established business it doesn’t make any sense to add a 30% cost but people seem to go with the flow it’s a popular option and businesses are just giving in because of the popularity of the system with customers.
Answers (11-20)
My friend, you are asking about partnering with three companies of different Core Values. While admittedly all of them create some value sometimes, they encourage to have a delivery order button on your private website, This is nothing but short of back channeling not only to make substantial commission from your sales, but also to rob you of your most valuable asset, "Customer Information".
Also, Now you do not have to worry about which one you do business with as they have created their own network, so an Uber driver shows up to pick up an order for Doordash, the Doordash driver shows up to pick up for Slice and on and on....
Do you have 30% NOI on each order to give these guys up to 30% from the top?
They made it big during the pandemic, now they are scrambling to modify and adapt their business models to keep their shareholders happy.
They are only good to generate enough revenue to "fill in the blanks".
Good luck
I work with hundreds of restaurants on a daily basis.
The answers are mixed from, "I hate the commission rate...." to "Love it, saved my business during this hard time...).
As with recent changes the Coronavirus has brought upon, there are ways to be successful in this industry and still make money.
For example, understanding what makes you rank higher on these delivery apps against other cuisines.
It's not simply good ratings and price.
Delivery apps will look at how quickly you can produce food for their user/customer base.
If you don't have some sort of automation in place, you are already starting behind. There are tools and data that you can empower your restaurant with to increase your win rate on these apps.
Or you could be that low percentage where, demographically people don't use those delivery apps. Doesn't happen very often though.
Caviar and Amazon are good and the fees are a bit lower, but we don't do anywhere near the volume we do with Grubhub. Rarely have issue with getting drivers here on time. I just wish their marketing and promotions we a little more on point like Grubhub. Also changing the menu is a hassle as you don't have direct access to this--you have to submit a tedious form or wait on hold to talk to someone live. We would include a lot more items if this back office feature was available.
Postmates might turn out to be my favorite. We haven't been with them for long, but their fees are much lower than Grubhub, give you the ability to edit your own menu, and you can set the prices differently than your normal menu so you can make up some of the percentage they take. The other services put in the contract that your prices must match your in-house menu. Their back office is very easy to navigate and has all the functions that Grubhub has except you can't attach pictures to each menu item yourself. Also the drivers have shown up in a timely manner. You have the ability to set your own promotions and like Grubhub we are able to have our full menu updated daily. I also like their tablet setup the best and the data and reports that it gives you at the end of the day.
Haven't partnered w/ doordash, but I am wary of them based on the orders they have placed from us so far. They have some version of our menu posted, but it tends to be outdated. Read some reviews of them and it has not been impressive thus far so we'll see if they are still around in a year or two.
We have couriers to make deliveries for us and charge the customer whatever the courier charges us. Because there is not much profit to play with in boxed lunches and baked goods. Paying the order/delivery service the high percentage they want would not work for us. Maybe if were just trying to get our name out there, it might be different and we could think of it as a marketing cost.
Yes door dash has been great in our retail stores
We use all 3 at the same time. It is rare that they will both order the same day.