Third-party delivery companies continue to grow in popularity due to the pandemic as customers adjust to life without dine-ins but at great cost to restaurants
Learn how to save delivery costs, get more ROI and create unique customer experience by converting from third-party delivery to first-party zero-commission deliveries
According to Statista, the revenue from online food delivery amounts to $26,527 million in 2020 and is expected to grow at an annual rate of 5.1% for the next 5 years. At $15,631 million, the United States currently has the largest segment of restaurant-to-consumer delivery.
Due to social distancing and lockdowns, Americans have had to adjust to this new reality, and third-party delivery companies are cashing in big-time to the detriment of the restaurants they claim to serve.
JoyUp vs Third-Party Delivery Services (Costs Comparison)
Where you have to pay 30% per order to third-party delivery apps, the charges for JoyUp are a lot less. You only pay a flat, low fee. Consider the image below:
In a restaurant hosted on a third-party delivery company, for a meal of $30, a customer would have to pay an extra 22% for delivery fees and service charges, bringing the overall payment to $38.50 dollars. After the 3rd party delivery company deducts commissions, the restaurant gets only 55% of the $30 order value. But with the commission-free delivery offered by JoyUp, the restaurant will gain 77% of the $30 order value, while the customer pays 12% less. It’s a win-win situation for all parties involved. With JoyUp, the restaurant gains 22% more revenue than if they were using a 3rd-party delivery company, and the customer pays 12% less.
Why You Should Choose JoyUp Over Third-Party Delivery Companies
At face value, it seems convenient to have someone else handle your deliveries while you focus on your food, but there are significant drawbacks to handing over control of the online portion of your restaurant business to a third party delivery company. Especially when you consider that online ordering makes up a significant portion of your revenue these days.
These third-party delivery companies have beentaking as much as 30% on commissions per order. It grew so alarming that San Francisco had to cap commissions at 15% of every order, but even then 15% commission per order is still A LOT!
Even in the middle of a pandemic, when restaurants are struggling to survive, 3rd-party apps have refused to (temporarily) reduce commissions.The image below illustrates a restaurant’s gross sales comparison between JoyUp and UberEats for the month of April – amidst the pandemic where JoyUp generated about 70% more sales for the restaurant than UberEats did.
Every restaurant owner knows how little the margins of profit are. To keep giving 15-30% to someone else does not bode well for business in the long term.
If your restaurant has a presence on a popular delivery app, it means there is a potential to get some traffic. But this also means you’re competing for attention with tons of other restaurants without any unique experience. You’re giving away 30% of your income and you aren’t getting any special treatment!
DoorDash, Grubhub, Uber Eats, etc. are all great food delivery partners…in theory. But beneath all the gimmicks of helping brands survive the pandemic and participate in the growth of digital ordering, they’re in fact hurting your restaurant.
If your restaurant is hosted on their platform, and a visitor makes an order from your restaurant, you don’t really get the customer data. Without customer data, you cannot retarget an audience, you cannot market to them, you cannot optimize user experience for them. Instead, these third party delivery apps acquire the customer data and force restaurants to compete against each other inside their marketplace for what is now their customer. In the end, people who order from your store are never really your own.
Why spend 30% of your revenue for so little value?
How JoyUp Can Grow Your Restaurant
JoyUp is a white-label first-party delivery service that will not compete with you for your customers. Instead, we will help you grow your customer base at much less cost. As a first-party delivery service, we help differentiate you from the crowd and take complete control over your online ordering.
And since 70% of Consumers prefer to order directly from Restaurants, not third-party services, why hustle for crowded space in a third party delivery app when your customers would rather buy directly from you?
JoyUp enables you to receive orders from your social media page at zero commissions. Our commission-free pickup and delivery service works behind the scenes to create a unique customer experience for your restaurant.
How cool is that?!
Click the big blue button below to request a demo, and see firsthand how restaurants are using JoyUp to turbocharge their online restaurant marketing.