Flattening the pandemic curve led to flattening restaurants’ revenues. Overnight, restaurants have been shifting from table service business plans.
Are third-party food delivery apps helping your restaurant or profiting off it?
Takeaway has been taking over the traditional restaurant dining for a few years now.
Takeaway has been taking over the traditional restaurant dining for a few years now. Still, it was the global pandemic that took takeaway and food delivery services to the next level. Let’s look at the statistics:
Europe’s food delivery revenue went from $6.6 billion to $18.9 billion in 5 years. In 2020, there were 150 million food delivery app users in Europe. Three times more than they were in 2015.
Looking at these numbers, one may think restaurants are doing extremely well during the global pandemic. But are they?
On a second thought, these statistics are about food delivery revenue and app users. Nowadays, increased interest in takeaway, means increased interest in third-party food delivery websites and apps. Why? Because people use them to decide what they want for dinner.
Third-party food delivery services are based on advertising and realistically they dominate the online world. Often even if you search for a specific restaurant online, the first ad result will be from a third-party food delivery website. However, the real issue with these food delivery services is that they can charge up to 30 % of the restaurant’s order, often wiping out the restaurant’s profit.
Profiting from the restaurant industry or apps to the rescue?
As dramatic as this sounds, it’s a fair question. If a company is charging a restaurant 30% of the order’s total then what is left for the restaurateur? How are they expected to pay salaries and cover expenses?
On the other hand, third-party food delivery services are the go-to marketplaces for a lot of consumers. Often, we would go on these websites just to find some inspiration for the eternal question “What should we have for dinner?”. And just as often, once we find a dish that makes us drool in front of the screens, we place an order via the third-party delivery platform.
Love them or hate them, third-party food delivery services provide customers for your business. Customers you probably wouldn’t get unless you invest in online advertising.
Take ownership of your orders
Realistically, a restauranteur cannot afford NOT to be on these big food marketplaces, especially during the COVID-19 pandemic. So how can you take ownership of your orders?
Here is a solution - use third-party food delivery service providers to gain new customers but make sure to retain the customers you get from them. This means you need to go from passive to proactive. It is your job to make sure next time people want to order your food, they have a reason to do it through your website.
3 tips to get customers to order from your own website
#1 Reach your customer at home
Create a flyer. Flyers may be considered old school but it’s so easy to add a piece of paper to a takeaway bag and reach your customers directly!
Create a flyer using free design tools such as canva.com. Say thank you to your new customers and tell them about your website, where they can order food directly from you. To make sure the customers won’t throw away your flyer and that they will order from your website, add a 10% discount for their next order or a free soda.
Find local businesses that would be interested in a collaboration with you. Is there a local wine shop near your restaurant? Then you can offer discounts on items at their store while they promote discounts at your restaurant.
#3 Create a loyalty program
Using a loyalty program system is a long-term investment that will pay off!
One of the biggest advantages of having a loyalty program is that you collect data from your customers and use it for advertising. You can save your customer’s name, email and phone number and use it to create your own marketing. For example, you can directly reach your customers via email or through browser popups with a personalized offer.
This way you will keep your customer retention high and you will be less dependent on third-party food delivery providers.
Are you ready to try a loyalty program for your restaurant? Then get in touch!
With our Quickorder Mobile Ordering, you not only get your own ordering webpage, but also you get a loyalty program that will help you reach your customers and turn them into loyal ones.