Are food portals bringing local restaurants on the edge of bankruptcy?
The answer will shock you.
Partnering up with third party food portals is like giving your business the kiss of death. Their commission fees grow just like a cancer over time, until bankruptcy becomes unavoidable.
Ubereats & GrubHub thrive, by pocketing up to 20–30% worth of commission fees from every restaurant order, while restaurants barely make ends meet.
The problem is even more dire, since restaurants don’t even have the luxury to slightly increase their prices. That happens because delivery portals want to have competitive prices, so they don’t allow restaurants to increase their prices to get a thin profit margin.
How much money does a restaurant lose when fulfilling an UberEats order?
Why do restaurants sign up to deliver with UberEats?
UberEats promises restaurants a so-called partnership that will get them:
- online exposure
- new clients
- and ultimately more online orders
For both new and established restaurants, this is the ideal goal. However, from the moment the restaurant signs up, it become nothing more than a food supplier to UberEats.
The restaurants cannot even get in touch and send food promos to their clients, since this delivery platform keeps the client details secret. Their goal is to intermediate every transaction – this way, the middleman gets a chunk out of every order.
Real-life example: how much money does the client pay for the same UberEats order
Hidden Costs of Food Delivery Portals
GrubHub
Charges the restaurant up to 40% worth in commissions
Postmate
Charges the restaurant up to 30% worth in commissions
UberEats
- Charges the restaurant up to 40% worth in commissions
- Charges the consumer $5 for delivery
- Keeps the delivery tips, as well
Doordash
Charges the restaurant up to 30% worth in commissions
Caviar
Charges the restaurant up to 30% worth in commissions
Sources
Fight back against the corporate greed by using a
free online ordering system
You benefit from complete transparency: you know everything you need to know right from the very beginning; there are no hidden costs or fees.
You cut out the middleman, and take back control of your online ordering business. Whatsmore, you pocket every cent in a dollar yourself.
Your restaurant no longer gets cannibalized by the competition: your customers are no longer encouraged to check out other restaurants. With GloriaFood, you are the star of your own show.
You provide your customers with a better online ordering experience since you control everything related to how the food travels to them to how long it takes.
Your customers will no longer blame you for sloppy deliveries done by third party food portals (food storage conditions, long delivery time, etc.) - which work with several restaurants at a time and may deliver your food last.
You improve your online presence and boost your business -> by dramatically reducing the no. of unsatisfied customers throwing mud at you on social media & trusted review portals (such as Yelp), and thus discouraging other clients from trying your dishes.
You get closer to your best clients - since you gain access to customer data & useful analytics reports designed to boom your sales and make your business thriving.
Advantages of using the GloriaFood online
food ordering system:
No contracts, no monthly fees and no credit card is required.
(as opposed to ChowNow, MenuDrive, Toast POS)
No contracts, no monthly fees and no credit card is required.
(as opposed to ChowNow, MenuDrive, Toast POS)
No commission per order
(as opposed to Square Point of Sale)
Unlimited locations
(as opposed to CloudWaitress)
Unlimited locations
(as opposed to CloudWaitress)
Free unlimited orders
(as opposed to CloudWaitress)
No setup fees
(as opposed to iMenu360)
No setup fees
(as opposed to iMenu360)
No hidden or changing costs as your business grows
(as opposed to CAKE Point of Sale)
Become part of the online ordering revolution
Choose the sustainable way of online ordering.
RESOURCES:
The Verge - Uber Eats rolls out confusing new fees — here’s what they mean, Reddit - This new fee system is *******, 89% markup!, CNN - Why Uber Eats and GrubHub partnerships are risky for restaurants, The New Yorker - How Delivery Apps May Put Your Favorite Restaurant Out of Business, VOX - Building a restaurant business on the shoulders of the delivery industry is a recipe for failure, Forbes - Why Uber Eats Will Eat You Into Bankruptcy, Reuters - Uber filing lists revenue gains, struggles of food business, Mel Magazine - Making Sense of Food Delivery Fees, MENUDRIVE - Pricing, iMenu360 - Pricing & Features, CAKE Point of Sale - Pricing, CloudWaitress - Pricing, Square Point of Sale - Pricing, Toast POS - Pricing, ChowNow - Pricing
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