How much does your Restaurant’s Online Ordering Tool really cost you?
What does your restaurant’s online ordering tool really cost you?
Food and beverage businesses are among the booming industries in the online world. Several factors aided its rapid surge. But the 2 most notable factors have to be none other than—
- Technology-aided convenience—Human beings prefer convenience over monetary benefits. This is superbly depicted by Forbes, which highlights how the online food delivery system will become a $200 billion industry in just 3 years from now.
- Current pandemic situation— 2020’s pandemic situation was a curse for many businesses. However, the increase in internet usage also allowed the Indian market to experience a huge rise in the online food delivery business.
Why is online ordering beneficial?
- Easy access—the post-pandemic world has made humans lazier than before. How can food be left out from laziness! Easy access is the main reason due to which age groups of 24-54 prefer online ordering over traditional ones.
- All-time availability—Online ordering tool exactly fulfills the unavailability gap. Open for the entire time, your business would profit even when asleep through purchases.
- Saves time—Online ordering tools render a proper management system. In that way, not only your customers but also your valuable time will be saved.
- Cuts down friction—through the online delivery tools you can effectively cut down the friction between your customers and your sale. Thus, your customer service would hike tremendously leading to high revenue generation.
Types of online ordering
3rd party online ordering—Some of the 3rd party restaurant online ordering tools are Swiggy, Zomato, GrubHub, UberEats. They bridge the gap between your customers and your services through their own trained professionals that take care of the delivery.
All these third-party apps will take up all the work on their shoulder in exchange for a fraction of your revenue.
- Own website—Your own restaurant online ordering website can even perform the same task. For that, you have to shoulder all the work but you won’t have to provide a penny to others. You need to build your Point Of Sale (POS) delivery system that will manage your entire online delivery. This is a cost-effective process which is discussed elaborately in the lower section of the article. Just keep scrolling!
- 3rd party POS integrated food delivery system—The POS integrated apps such as CAKE, Deliverect acts as a communicator between your restaurant’s POS and the 3rd party apps.
How much should you pay?
- 3rd party online food delivery apps:
Generally, the outside apps must be partnered so that you can utilize their online ordering tool. The payment system and charges vary from the commission on online orders to a monthly package, a base charge, or an annual charge.
- GrubHub— Grubhub charges a base commission rate of 13.05%. which may increase up to 33% for additional marketing.
- UberEats—UberEats charges a commission that ranges from 15% if the customer pick is discarded. While 30% with all the facilities.
- Own website—The in-house food delivery system would require you to build your website that you can commence at a rate of $11 to $40. In this case, you will have your own POS system.
You and your staff would be solely responsible for the delivery. Your guests would be able to place direct orders on your website rather than visiting other websites.
3rd party POS integrated food delivery system—The 3rd party POS sites will cost you around 25%-30%. Based on orders, location, and other factors the commission rate of Deliverect may vary.
How to cut down the online ordering tool charges?
By relying upon your in-house tool you can shoot your revenue readily. In this way, you won’t have to pay that extra money to the 3rd party apps. Other factors why in-house are cost-effective are:
- Be the boss of your brand—Unlike the 3rd party apps, you will have complete control over your branding. This means you can promote your brand in your way.
- Get access to customer data—Customer data is collected by all the 3rd party apps but they implement them in their use. With your in-house site, you can understand your customers better by having access to their data.
- Market as you like—You can market as you desire through Facebook campaigns, email marketing, and so forth.
Choose the ordering tool from the article based on your investment and revenue plans. The financial predictions portray that revenue in the online food market will reach $151,526m in 2021. Therefore, you must not miss this golden opportunity to create your own restaurant online ordering tool.
At Clorder, we can help you with building your online delivery system. Let’s connect to work together and grow your restaurant business in 2021.