Restaurant and takeaway businesses are troubled to survive because of the pandemic things. As dine-in facilities are restricted still in several countries, individuals are moving forward to online ordering over before. Several restaurateurs are moving drastically ahead from third-party food delivery services due to their unskillfulness which we are going to discuss during this article.
Why restaurateurs eliminates?
The main reason that every restaurant businesses encourage online ordering is that benefits huge revenue to play. According to Statista, the online ordering revenue growth is raised to 150 billion dollars with 10%+ growth in the year 2021. Restaurants are likely to have aggregators platforms initially, but now the conditions change due to some downsides of it.
Lets’s see how the aggregator model actually works, before seeing the liability.
How does it work?
Restaurants and takeaways will submit their menus to third-party aggregator apps and websites. Once the customer places their orders then contract drivers can initiate the deliveries and make use of their own transport. As a result of it, the aggregator services can earn each restaurant’s commissions and delivery fees. Some well-known third-party aggregators embrace simply Uber Eats and Deliveroo.
However, customers’ food ordering habits are consistently evolving with new trends. Restaurants are currently more and more providing their own websites or apps for food ordering. This is often one biggest reason why an oversized range of restaurants needs to launch their own food ordering delivery app. Therefore, restaurants should get their own food delivery application to thrive a lot.
At the moment, let’s dive deep into the key cons of third-party aggregator platforms well.
High of Cost
The commissions charged from the restaurants are too high by the third-party services. Turning a profit within the restaurant business is already tough in current trends, and becoming a partner with delivery aggregators mashes even tighter. Restaurants can sum up to pay 30% commission for each order placed by the customer.
According to Statista 2020, as people said 89% of them would directly order from the restaurants as resist to using online platforms.
Lack of Control
When using third-party aggregators, you also lose the direct relationship with your customers. That’s a hugely negative consequence, as the opportunity to build long-term customer loyalty is gone. Regular, loyal customers are the lifeblood of any hospitality business. Indeed, research shows that increasing your number of loyal customers even by 5% can grow your sales by up to 75%. So it’s really the best way to build a strong and sustainable business.
You can’t gather all important data by using the aggregators. Instead, they build up data and use it to grow their own brands instead of yours. By contrast, having your own online ordering system allows you to gather crucial customer data to drive your future marketing and loyalty efforts.
Even you lose the relationship with your customers while making use of third-party aggregators. It affects the opportunity to develop long-lasting customer loyalty.
Eternal Customer Relationship
Direct customer relationship speaks more about the food delivery business. By using third-party aggregators, you also chance to lose direct relationships with your customers. Loyal customers are an essential part of any hospitality business. Indeed, analysis shows that increasing your range of loyal customers even by 7% will grow your sales by up to 80%. So, it’s extremely the best method to develop a powerful and defendable business.
As mentioned earlier, customers’ preferences concerning food ordering keeps dynamic with trends. Most customers like ordering food directly from a restaurant’s website or app because of secure payment and reliable delivery timings. Also, many customers need to support their favorite native businesses during such difficulty by ordering directly from restaurants. According to our research, that shows most people like ordering food directly from restaurants online over once every week.
Foodesoft is cost-effective and places you back in control
Using Foodesoft online ordering system gives complete control, cuts back costs, and carries defendable growth for your business. This one-time investment in making your own white-label delivery app or website will drive a lot of potential customers and increase your sales. It permits restaurants to relish complete management over their customer’s expertise and gain fruitful loyal customers. Hence, build your own ordering marketplace and avoid further monthly expenses to realize lasting, and profitable relationships with your customers.