How is commission base third party delivery harming your restaurant?
It hurts your profit margins.
Let’s face it. It’s time to stop paying over and over again for your own customers. With Grubhub, you could be paying 15-30% commission on each and every order you receive.
If the phone company charged you 30% for every phone order you processed, you would have stopped taking orders over the phone a long time ago.
Not only are these large commissions cutting into your bottom line, but they are inhibiting you from using your money wisely. This financial freedom allows you to create room for a marketing budget that focuses on your brand, not Grubhub’s brand.
It markets your competitors to your customers.
Let’s say you own an Italian restaurant and you’re known for your famous calzones. About a month ago, you had a new customer stop into the restaurant to try one and they loved it. You pass them a promotional card that you received from Grubhub to market your restaurant.
Fast forward to present day. That same customer may not remember your restaurant name, but they remember your famous calzones and seeing “Grubhub” at the top of the card you handed them. They search “calzones” in Grubhub’s search bar. Can you guess how many restaurants come up?
Not only will they be inundated with marketing for other restaurants that have paid to be at the top of the search results, but your customer is now a loyal Grubhub customer. Can you imagine if they were handed a promotional card with your restaurant’s name at the top? This is yet another reason why having online ordering that is branded to your restaurant is so important.