Order Management, Strategies

5 Costs of Third-Party Order Systems That Are Cutting into Your Profits

For the past several years, third-party restaurant delivery platforms have helped restaurants meet high customer demands with online ordering and delivery. Customers can order anything and get it delivered to their doorsteps. There are no waiting tables, no dealing with noisy conversations, or making public appearances. However, working with these platforms costs restaurants. Here are some of the costs of third-party order systems for your restaurant and why a native technology platform is a better choice. 

Breaking Down the Costs of Third-Party Ordering Systems

All third-party ordering services charge for orders, typically at a rate of 15-30% per order. These fees cover the complete online and delivery experience. Some of the common expenses you need to pay are:

  1. Commission on every order made and completed
  2. Service fees to help with paying delivery drivers and vehicle costs
  3. Payment processing fees
  4. The technological infrastructure provided by the delivery services
  5. Expenditures for marketing your restaurant menu on their platforms to increase the market base

These fees cap the profit margin of restaurants. It means that with higher sales, you have to part ways with more cash. If any of the services lack efficiency, then your restaurant loses customers to competitors.

The Benefit of Native Technology Platforms

Most restaurants now turn to native delivery to fix their logistics costs, make more money, and increase order totals. Native delivery cuts down marketing costs and helps your business, not third-party ordering apps, make more money. What’s more, the acquisition cost for customers is zero and helps to create a lifetime value.

The success of native online delivery depends on the sales volume you will have in the bottom line, but the budgeting is efficient, and you can set up online delivery seamlessly.

Are you hungry to start taking online orders? CBEST Solutions will help you build your name exclusively and cut down unnecessary costs while boosting you into the future. Contact us today to book a free consult.

Related Posts