Should my restaurant use 3rd party apps to get more orders?
Is it worth it to pay a commission structure to get orders you wouldn't have received otherwise? Percentages vary, but DoorDash or Uber Eats can charge 15%, 25%, or up to 30%. Typically that is taken off the subtotal, so off a $100 food total you are collecting $70 to $85.
Sometimes the payment processing is deducted too. Sometimes they will deduct a delivery fee.
That could be a big hit to take if that $100 order already cost you $70 to make. So you could break even or profit a small amount on that order. Is it worth it to get that new customer? Maybe. Is it worth it to keep your employees busy and to clear your inventory faster? Probably. It can help on a typically slow day of the week. A slightly profitable night is better than an empty night.
There is an age-old argument about raising prices for these platforms. Maybe not age-old, but people have been arguing this since the 2000s when local delivery services were more common. Raising prices 10% to 15% was not unheard of, but keep in mind that your new customer is taking that hit, plus they're paying extra delivery fees and service fees on top of your raised menu prices. When they're paying so much extra to eat your food, they're also going to tip less.
The main reason for a restaurant to use 3rd party apps is for the marketing. You are being seen by lots of new customers who exclusively order online, and if you become a favorite go-to then they're more likely to think of you when they're eating out. Being listed on these apps do count as backlinks, however it doesn't directly help your SEO. Learn more about SEO here. But the more reviews you can generate, the better.
Sometimes the payment processing is deducted too. Sometimes they will deduct a delivery fee.
That could be a big hit to take if that $100 order already cost you $70 to make. So you could break even or profit a small amount on that order. Is it worth it to get that new customer? Maybe. Is it worth it to keep your employees busy and to clear your inventory faster? Probably. It can help on a typically slow day of the week. A slightly profitable night is better than an empty night.
There is an age-old argument about raising prices for these platforms. Maybe not age-old, but people have been arguing this since the 2000s when local delivery services were more common. Raising prices 10% to 15% was not unheard of, but keep in mind that your new customer is taking that hit, plus they're paying extra delivery fees and service fees on top of your raised menu prices. When they're paying so much extra to eat your food, they're also going to tip less.
The main reason for a restaurant to use 3rd party apps is for the marketing. You are being seen by lots of new customers who exclusively order online, and if you become a favorite go-to then they're more likely to think of you when they're eating out. Being listed on these apps do count as backlinks, however it doesn't directly help your SEO. Learn more about SEO here. But the more reviews you can generate, the better.