Focus on preparing great food and increasing sales. NOT negotiating down your commissions and data ownership with Third Parties!
They’re your customers after all…
When third party delivery companies such as Grubhub and Postmates first burst onto the scene, restaurants quickly jumped on the opportunity and blindly committed themselves, without thinking about the long term consequences and health of their profit margins with such high commissions. Not to mention the fact that these third parties are promoting themselves in the spotlight, while your restaurant brand takes a backseat, surrendering your customer data and relationships in the process. It was a situation when restaurants became trigger happy, thinking to themselves, “I have someone to deliver my orders, and not having to worry about it anymore while they handle it is all that matters.” But is that all that matters? What if there was a way to have someone handle your delivery orders, but as a direct sales channel with no commissions, while also letting you keep your customer data and relationships?
Well, with Say2eat’s delivery dispatch service, there now is! Say2eat’s delivery service handles all deliveries from A-Z, with 0% commissions paid off the orders, effectively cutting any existing delivery costs with third parties by well over 50%! This enables restaurants to grow the delivery aspect of their business in a profitable way, keeping their margins healthy and intact. Additionally, Say2eat delivers all customer data and relationships directly to the restaurant as a direct sales channel, so that they can get to know their audience and understand ordering behaviors and trends. Data analysis is fully automated by Say2eat, with an additional loyalty re-targeting layer that wins back lost revenue from abandoned carts, and makes ordering time and time again as simple as one click of a button. P.S., when customers order via Say2eat’s Facebook Messenger Ordering service, they complete the order 40%-60% of the time, compared to just 20% via traditional website ordering.
Instead of spending time and enduring the headache of trying to negotiate down your commissions with third parties, spend time focusing on what really matters and what your daily priorities truly are. Say2eat solves these issues while providing an all in one high converting ordering service via channels such as Facebook Messenger (where your customers naturally live and spend 90% of their time), while truly working for the restaurant with a commission free delivery service. The customer places the delivery order, you pay a small courier fee and then charge the customer a small delivery fee which you keep, and not anyone else as is the case when working with third parties.
Furthermore, your customers will no longer be deceived by third parties and pay any mysterious “hidden fees” or any service fees whatsoever. This is how delivery should have been from day one, a profitable offering that is also not deceitful towards your valued customers. Your customers prefer ordering for delivery directly from you, and now with Say2eat they can. It is a win-win for both the customer and the restaurant, as the restaurant significantly cuts any existing delivery costs, and the customer doesn’t pay anything more than a small delivery fee that goes to the restaurant and nobody else.
As we all know, talk is cheap. So let’s back up all these claims and statements with some actual proof shall we? Here are what restaurant industry leaders and pioneers have to say about third party delivery companies:
“The economic model is not sustainable in the way it has been structured,” — John Cywinski, president of Dine Brands Global
“What I’m seeing is brands moving that burden away from themselves now to the consumer. And at this point, I’m just a little uncomfortable with that,” — Gene Lee, Darden Restaurants Chief Executive
“They are just dialing for dollars all day long. It’s a circus.” — Barry Friends, Topper’s Pizza
“We are cancelling all partnerships with third party delivery moving forward. It is weighing too heavily on our margins.” — Cynthia Gerdes, Hell’s Kitchen Co-Founder
Offering delivery from your restaurants does not and should not be so painful, especially for your valued customers as well as their bank accounts, and your restaurants’ bank accounts as well. Your customers want simple ordering for delivery without the hidden service fees, or commissions on the restaurant end, via companies like Say2eat. According to The Wall Street Journal, when working with third parties such as Ubereats and Doordash, “the technology and logistics required to get it right — whether in-house or through an outside provider — often are more costly, outweighing any additional revenue generated.”
Additionally, many restaurant leaders concede that they pulled the trigger way too quickly regarding working with third parties, without understanding or doing the due diligence as far as how it will affect their business in the long run. Today, they are feeling the brunt of that uneducated decision, saying they had been too quick to accept the unfavorable terms and commissions associated when working with third party delivery companies. Not to mention the fact that it did not even cross their mind that they are surrendering their customer data and relationships, as well as their branding and ability to sell direct to their customers (which is what customers prefer), in the process.
According to research firm Euromonitor, delivery sales eclipsed $34 Billion last year in the US alone. This represents a 13% increase from 2017. However, most restaurant executives have all come to the same conclusion: It is the third party delivery companies who benefit most from these sales increases, rarely resulting in significant profits for the restaurants which is the point of all this isn’t it? It is the third party’s branding and logo being promoted in the front, while your restaurant gets buried in a list of hundreds, while truly taking a backseat. This, with ridiculously high commissions that hurt your margins, while also surrendering customer data and relationships, branding, and ability to sell direct to your customers.
With Say2eat, the polar opposite scenario comes to fruition. No commissions, keep your customer data and relationships, branding, ability to sell direct to your customers, and most importantly, keep your margins healthy and where they always should have been.