Online Ordering Trends: The Delivery Commission Issue

The Delivery Commission Issue | Takeaway Solutions

One of the biggest challenges restaurants have had to deal with in a rapidly evolving digital world is online ordering. An increasingly popular option among a multitude of demographics, online ordering can be a great source of revenue for restaurants regardless of their size. Moreover, there is a great benefit in offering online delivery, since it allows new swathes of customers to try your restaurant in the convenience of their own home. 

While yes, online ordering drives revenue - the one thing to consider when thinking about solutions that offer this service is how much revenue they will realistically deliver. The reality of it is that most online ordering solutions come at a hefty price and a pretty hefty commission. This new trend of online ordering has seen a strange dichotomy wherein restaurants make money through online ordering...but their overall margins decrease due to the high commissions that these solutions take. 

For example, popular online takeaway solution Just Eat has seen a massive share in its profits recently. This is mainly due to the fact they raised their commission rate by a percentage point, taking it to 13% for existing customers. And while Just Eat is reaping the rewards of the online takeaway business, the restaurants do not stand to gain as much. This trend of higher commission fees has led many restaurant owners to eschew the platforms in search of other, more feasible solutions.

The truth is, using popular takeaway solutions tend not to be a sustainable measure, at least in the long-term because of their high commission fees. They are a good stepping stone to gaining exposure and expanding a customer base, but solely relying on them as a revenue generator might end up being more costly as the trend of raising commissions gains steam.

Instead of relying solely on these platforms, it might be time to evaluate solutions you can independently implement for online ordering, or offer in tandem with commission-based takeaway platforms. Having multiple options for restaurant delivery solutions allows you to build a sustainable revenue stream while still growing your key customer base - without forking over a huge commission every time. 

Interested in learning more about a restaurant delivery solution that does not take a cut of your margins? For more information about our commission-free online ordering and table booking platform, contact us today.