Online ordering for restaurants is a game-changer that allows them to increase market share, daily orders, and run profitable promotions. However, not all online ordering systems tilt the odds of success in the restaurant’s favor. In this article, you’ll learn about the limitations of some delivery apps and how it’s crippling restaurants instead of empowering them.
You’ll also learn about a solution, which offers unique online ordering advantages for restaurants. Learning about these may cause restaurants to look for options and increase their ordering options in favor of a more profitable business model.
The problem: Delivery apps like UberEats doesn’t empower restaurants
Many restaurants go with UberEats because it’s the easiest option. It’s well-known and the perception is that they will provide a lot of orders. However, restaurants are not aware of the negative aspects of going with this type of delivery app.
Here is a summary of why going with UberEats should be questioned:
- High fees: UberEats charges restaurants a 30%+ fee of your sale, which significantly reduces the chances of profitability. The fee is non-negotiable and it’s a problem because restaurant profit margins are typically significantly lower than this fee. Therefore, the proposition is to lose money when using UberEats.
- Client belongs to UberEats: Customers ordering from UberEats don’t build a relationship with the restaurant because the customer belongs to UberEats. Therefore, restaurants can’t offer loyalty programs, send promotions, re-marketing and other incentives to use their food service. Essentially the restaurant becomes a dark kitchen for the UberEats marketplace.
- Delivery Apps are not profitable: Investors believe that UberEats will be losing money for each transaction until 2024. Uber doesn’t sustain the business based on the cash it generates. Hence, it created an unsustainable supply chain. This lack of priority on making money shows their mindset is not in line with what restaurants need.
The unavoidable drawbacks of this type of delivery apps for restaurants are difficult to overcome. However, in the next section we will share a viable alternative that tilts the odds of success in favor of restaurants.
Solution: Flex Catering Software
Flex Catering is a restaurant management software with a zero commission online ordering. The online ordering website is white labelled and all customers data belongs to the restaurants.
There is money to be made in online ordering for restaurants with the correct setup. Flex Catering empowers restaurants by giving them:
- a white label solution for their online ordering – the online ordering is customizable to adapt branding,
- full control of the customers details,
- and a delivery integration alternative that costs less than half when compared with traditional delivery apps.
- Powerful administrator dashboard to manage their orders, products, customers, production and delivery. It also integrates with software such as QuickBooks and Xero.
Flex Catering deliveries are handled by a partnership integration with affordable last mile delivery solutions such as DoorDash Drive (USA, Canada, Australia and New Zealand) and Stuart (UK, France and Spain). These on-demand delivery solutions already have an established network of delivery people with a proven track record. Plus, keeping the safety of customers in mind should take priority for the running of such services. Considering that, it is likely that they leverage some of the latest technologies, such as a telematics system, for their vehicle delivery fleet. With nothing to worry about, you can use Flex Catering as your online ordering platform and DoorDash/Stuart as your on-demand delivery service.
Here is an overview of Flex Catering software advantages:
White Label Solution: The software runs on the restaurant’s domain name and it is fully customizable to suit the branding look and feel, which gives the restaurant full control over branding. Customers will be ordering online from the restaurant website directly instead of going through a middle man.
Loyalty Programs and Discounts: Loyalty programs can be created that reward repeat customers. That’s not possible with most delivery apps. Repeat customers can represent the majority of the sales, which allows restaurants to receive stable order volumes throughout the year.
Inexpensive: Flex Catering charges a flat monthly fee. The cost depends on the factors such as admin users and number of locations and it always comes out significantly cheaper than food delivery apps. Therefore, restaurants have the freedom to enjoy lower fees and bigger profit margin.
Affordable delivery: Flex Catering has partnered with third party delivery companies that charge affordable delivery fees. The restaurant is not stuck with just one delivery company. They also have the option to charge the client for the delivery fee. This gives restaurants a bigger say in how their business its run.
Reports: The software provides reports that give restaurants an overview of the numbers regarding sales, production and delivery. The feature helps restaurants understand how the business is performing.
Great user interface: The software provides an intuitive user interface for desktop and mobile users. Creating a great user interface means customers are more likely to complete the online ordering process and order again. And it is all without downloading complicated apps and signups.
Also, customers can use filtering if they have dietary requirements such as vegetarian, vegan and allergies. It helps customers search for food if they have specific needs and want to avoid searching big menus.
Smart integrations: Flex Catering’s flexibility continues with their smart integrations. It allows restaurants to combine their software with complimentary apps. Therefore, you can enjoy the advantages of other apps such as accounting software, POS, credit card gateways and much more.
Why website software is more sustainable for restaurants
The sustainability of web-based software compared to UberEats is a big upside for restaurants. UberEats is currently not profiting from orders, which means they may introduce new rules to increase their share and reduce that of the restaurant. Restaurants are basically praying that they don’t have to pay more fees in the future. Moreover, UberEats may open their own kitchens and start their own food production to fulfill their orders. Where would your restaurant business be in this case?
On the other hand, software solutions like Flex Catering allow restaurants to get online easily, solve the on-demand delivery and consequently increase profit and gain control over their data. This will evidently improve the quality of the overall online ordering business model. The industry must strive to be profitable and sustainable among all channels.
Adding your own independent online ordering and delivery solution might be one of the best decisions you make for your restaurant business. It will allow you to direct your clients to start ordering directly from your own website, where you pay no commission. This will increase your profitability and gives you access to your customers’ data. Finally, you will not become dependent on third party delivery apps.