White Label Direct Online Ordering, Fully Branded for Your Restaurants — Own The Customer Relationship and don’t surrender to Third Parties with high commissions
The timing has never been better for restaurant brands to deploy smart and efficient online ordering. But it is important to focus on the words “smart” and “efficient.” Too often, restaurant brands are surrendering to all the demands of marketplace third party online ordering companies, when you can keep a bigger piece of the pie by simply making your online ordering act as a “direct sales channel” in-house.
According to several recent studies, the consumer appetite for simple, user-friendly online ordering is on the rise.
Online ordering sales have risen by 20 percent, with the number of deliveries increasing 10 percent over the last five years, according to the NPD Group.
The Cowen Group, an investment firm, are forecasting a 79 percent rise from $43 billion in 2017 to $75.9 billion in 2022 — or 12 percent growth annually — in the total U.S. food delivery market.
U.S. Restaurant Delivery Revenues (2014–2022), in the billions
All indications suggest that there will be a significantly larger infusion of sales and profits for restaurant brands utilizing online ordering. The key to maximizing those profits hinges on whether or not the online ordering is a direct sales channel or via a third party. Restaurants that choose to utilize third-party ordering like GrubHub, Uber Eats, Postmates and DoorDash as their primary means of delivering orders, are surrendering up to 40% commission per order as well as forfeiting the customer relationship and loyalty to those third parties.
You work hard to prepare the food and deliver exceptional service, so you should own the customer relationship while keeping 100% of each and every order. Thats where Say2eat comes in. With Say2eat’s frictionless platform, you are utilizing online ordering via your customers favorite daily-used messaging channels (Such as Facebook Messenger. This leads to higher conversion rates and repeat orders, due to the user-friendly nature of ordering as well as the lack of discouraging barriers such as downloading and registration. This, all while utilizing Say2eat as a “direct sales channel” (Say2eat is fully white label), keeping 100% of every order, and completely owning the customer relationship.
As restaurants brands continue to rely on third-parties, commission fees continue to grow as well. Instead of essentially giving away significant revenue and hurting their bottom line as a business, restaurant brands should be thinking how to keep their sales in-house and direct with services such as Say2eat’s while GROWING their business.
Here are the facts:
- Commission fees force you to automatically forfeit a large part of your business
- Third party services do not provide scalability
- You need to be owning your relationship with your customers and valuable data and insights — third parties keep it all to themselves
- Nonexistent customer loyalty or re-engagement for repeat ordering with third parties
- Increased Customer Loyalty
- Access to Insightful Customer Data
- Consistency for Your Customers
- Say2eat allows your customers to easily discover you for user-friendly ordering, keep your customer relationships and re-engage them for repeat orders coupled with valuable insights and data
Here are some testimonials from restaurant owners about the negative effect third parties have had on their bottom line as business:
Mulberry & Vine. “We know for a fact that as delivery increases, our profitability decreases,” says Michelle Gauthier, owner of the American restaurant with five branches across Manhattan, New York. By her estimates, between 20 and 40 percent of the restaurant’s revenue goes to third-party platforms and couriers.
Veselka. “We don’t have the capacity to really analyze the economics of it carefully. We’re in the dark,” says Tom Birchard, owner of the popular Ukrainian restaurant, which uses services such as DoorDash, Caviar and GrubHub.
Endless Summer Taco. Two years after signing up for third-party online delivery services, Teddy Roland, owner of the Endless Summer Taco food truck, says: “My little family shop started looking like a Sprint store.” His delivery partners typically took a cut of 20 percent or more.
Why larger brands such as Domino’s, Olive Garden and Habit Restaurants won’t be utilizing third-parties:
- Domino’s CEO Patrick Doyle told analysts earlier this year: “The efficiency of the delivery process is something we know and understand very, very well. That’s not something you’re ever going to see us outsource. The only way to bring a long-term competitive advantage is to do it yourself.”
- Gene Lee, CEO of Darden Restaurants, which owns Olive Garden, says that his restaurants are “not going to live with the economics that some of the [third-party] players are asking for.” He adds: “At the end of the day, we’re testing and we’re being diligent, but we’re not willing to give up 20 to 25 percent just to get a sale.”
- Russell Bendel, CEO and president of Habit Restaurants, is not a believer in working with third-party vendors. “We’ve met with all of the third-party delivery companies,” he says. “People want convenience, but we’re not willing to give 30-plus percent of proceeds to a third-party delivery company.”
Luckily, there are some cutting edge online ordering technologies out there that are fully white label like Say2eat. Keep 100% of every order, offer ordering to your customers via their favorite daily-used messaging channels, keep the customer relationship and loyalty, and re-engage them for any reason whatsoever with valuable data and insights that you keep.
Say2eat’s white label solution enables chains and restaurants to create personalized consumer engagements that lead to desired business outcomes.
To see Say2eat’s technology in action, click HERE (link to schedule a demo).
We are a one-stop-shop for empowering your digital strategy, by providing a seamless solution across all voice and message applications (e.g. Facebook Messenger, SMS, iMessage, Amazon Echo, Google Home, etc.). By implementing core technologies and transforming business operations to scale global loyalty, our omni-channel commerce creates a smart, brand customized and conversational user experience. This leaves brands with an everlasting impression of convenience, efficiency and ease of use that promotes consumer loyalty and retention.