How Much Your Online Orders Cost You?

How Much Your Online Orders Cost You?

As you already know by now, online ordering is a must-have ordering channel for all restaurants.

Lockdowns hugely reduced the food business around the world, but it also accelerated online orders for restaurants. This trend is expected to continue accelerating in 2022 as restaurants will invest in expanding their online ordering opportunities.

Food marketplaces offers ease and convenience to restaurant owners that are unwilling to invest for their own online ordering system, but it also brings a huge cost to their business.

Food marketplaces leverages orders for restaurants, but what about profits? Earnings are melting down with commissions and fees from those food marketplaces.

You will find the true cost of online orders from food marketplaces below,

How Much GrubHub Charges Restaurants

GrubHub will charge you a commission fee per each order. Since GrubHub rates are not disclosed, we can’t write the exact rate, but according to feedbacks from our customers and Google searches, average GrubHub commission rate is 13.5% of each order.

Check out more details about Grubhub comparison

How Much Seamless Charges Restaurants

Seamless commission fees are anywhere from ~ 15% up to ~ 30% per order.

Check out more details about Seamless comparison

How Much ChowNow Charges Restaurants

ChowNow fees for using their online ordering platform starts from $99 to $149 per month ChowNow also charges you between $199 and $399 setup fee for each location.

Check out more details about ChowNow comparison

How Much Does Just Eat Charge Restaurants

Just Eat commission fees are starting from 14% + 50p per each order.

Check out more details about Just Eat comparison

How Much Does Foodpanda Charge Restaurants

Foodpanda fees are anywhere from ~ 20% up to ~ 30% per order.

Check out more details about Foodpanda comparison

What should I do?

As you can see, there is a huge cost for receiving orders from third-party food marketplaces. You are also losing your own customers if you let them order from those platforms. Your customers will also see your competitors on same page, and they can change their minds and place their orders to your competitors on 3rd party food ordering marketplaces.

Online ordering was already an emerging trend, but current situations around the world increased that acceleration. That also accelerated customers ordering behaviors, they are ordering directly from restaurants own website or apps instead of other platforms.

Before 2020, near 30% to 40% of customers were ordering food directly from restaurants own website or mobile apps, after 2020, this percentage jumped up to over 80%. (Based on RestApp data insights.)

So, why are you still receiving your online orders from third party food marketplaces and losing money? You should keep your restaurant listed on those marketplaces, but you have to create your own online ordering system besides that.

It’s never too late to create your own Online Ordering system and receive orders directly from your customers.

Check out more details about your own Online Ordering System for your restaurant.