Third-party platforms vs your own direct ordering platform: Which one is right for your restaurant business?

If you are a restaurant owner, you may have wondered whether you should use a third-party food aggregator app or your own direct ordering platform to accept online orders from your customers. Both options have their pros and cons, and they can also complement each other depending on your business goals and target audience. In this article, we will compare the two options and help you decide which one is the best solution for your restaurant business.

What is a Third-Party Food Aggregator App?

A third-party food aggregator app is a mobile app that allows customers to order food from different restaurants in a specific area. Examples of such apps are Grubhub, Zomato, UberEats, DoorDash, Takeaway, Deliveroo, and many more. These apps act as intermediaries between customers and restaurants, providing convenience, variety, and discounts to customers, and exposure, delivery, and technology to restaurants.

What are the Benefits of Using a Third-Party Food Aggregator App?

Using a third-party food aggregator app can have some benefits for your restaurant business.

Reaching new customers: By listing your restaurant on a popular food aggregator app, you can increase your visibility and attract new customers who may not be aware of your restaurant or who may be looking for something different to try.

Saving time and money on delivery: By outsourcing the delivery process to a third-party app, you can save time and money on hiring, training, and managing your own delivery staff. You can also avoid the hassle of dealing with traffic, parking, and customer complaints.

Leveraging technology: By using a third-party app, you can benefit from their advanced technology and software, such as online payment processing, order tracking, customer feedback, analytics, and marketing tools.

What are the Drawbacks of Using a Third-Party Food Aggregator App?

Using a third-party food aggregator app can also have some drawbacks for your restaurant business, such as:

Losing control over your brand: By listing your restaurant on a third-party app, you are giving up some control over your brand identity and customer experience. You are also competing with many other restaurants on the same platform, which can dilute your uniqueness and value proposition.

Paying high commissions: By using a third-party app, you are paying a commission fee for every order you receive through the app. This fee can range from 15% to 30% or more per order, which can eat into your profit margin and affect your cash flow.

Losing customer loyalty: By relying on a third-party app, you are losing direct contact with your customers and their data. You are also missing out on the opportunity to build customer loyalty and repeat business through your own loyalty program, promotions, and personalized service.

What is Your Own Direct Ordering Platform?

Your own direct ordering platform is a mobile app or a website that allows customers to order food directly from your restaurant without any intermediaries. Examples of such platforms are Flipdish, FoodAppers, ChowNow, EasyOrder and many more. These platforms provide you with a branded mobile app and/or website that you can customize and manage according to your needs and preferences.

What are the Benefits of Using Your Own Direct Ordering Platform?

Using your own direct ordering platform can have some benefits for your restaurant business, such as:

Building your own brand: By having your own direct ordering platform, you can showcase your brand identity and personality to your customers. You can also create a consistent and seamless customer experience across all touchpoints, from ordering to delivery.

Saving money on commissions: By using your own direct ordering platform, you can avoid paying any commission fees to third-party apps. You can also set your own prices, menu items, delivery fees, and minimum order amounts without any restrictions.

Increasing customer loyalty: By using your own direct ordering platform, you can establish direct relationships with your customers and their data. You can also create your own loyalty program, offer discounts and coupons, send push notifications and email newsletters, and provide personalized service to increase customer retention and referrals.

What are the Drawbacks of Using Your Own Direct Ordering Platform?

Using your own direct ordering platform can also have some drawbacks for your restaurant business, such as:

Investing time and money on development: By creating your own direct ordering platform, you need to invest time and money on developing, maintaining, and updating the platform. You also need to ensure that the platform is secure, reliable, and user-friendly.

Managing delivery by yourself: By using your own direct ordering platform, you need to handle the delivery process by yourself or hire a third-party service provider. You also need to deal with the challenges of traffic, parking, and customer complaints.

Marketing your platform: By using your own direct ordering platform, you need to market it to your existing and potential customers. You also need to compete with the popularity and convenience of third-party apps.

How Can You Use Both Options Together?

Depending on your business goals and target audience, you may want to use both options together to maximize your online ordering potential. For example, you can use a third-party app to reach new customers who are looking for variety and convenience, and then encourage them to order directly from your own platform next time by offering them incentives such as discounts, free delivery, or loyalty points.

You can also use both options to cater to different customer segments, such as using a third-party app for delivery orders and using your own platform for takeout or dine-in orders.

Conclusion

There is no one-size-fits-all answer when it comes to choosing between a third-party food aggregator app or your own direct ordering platform. Both options have their advantages and disadvantages, and they can also complement each other depending on your situation. The key is to understand your customers’ needs and preferences, your competitive landscape, and your financial goals and resources. By doing so, you can find the best solution for your restaurant business and grow your revenue and customer loyalty.