It is a known fact that 3rd party food ordering apps like Zomato, Swiggy & Uber Eats have become the first choice of people looking to order food online. And while these 3rd party apps are a good platform for gaining exposure to new groups of audiences, but they also have 2 major disadvantages. One, extremely high commissions, and the second one poor customer retention.
One of the most significant disadvantages of working with 3rd party food aggregators is the high margin that it takes from individual restaurants per order. These 3rd party apps charges anywhere between 10%-35%* of each order depending on the service provided and the area and hence is difficult for the restaurants to do the business. These 3rd party apps might give you more visibility and a good volume of orders, but what matters at the end of the day is - REVENUE.
Poor Customer Retention
Since there is an endless variety to choose from, customers ordering from 3rd party apps will not actively look forward to ordering with the same restaurant again. So, 3rd party aggregators do little in the way of customer retention.
A restaurant cannot possibly earn back the investment they made in acquiring a customer with just one order. It will at least take a few orders from a single customer before they recoup the original marketing expense that made the customer order.
Even though, restaurants have been giving out huge discounts on 3rd party platforms in the hope that it will encourage new customers to try out the food and expecting that a good percent of them will come back and convert into regulars. But will any restaurant be willing to have their entire customer base come out of 3rd party apps? Not in their wildest dreams.
And, while more discounts are offered by the restaurants, there is no bearing on the reduction of commissions. The visibility is the barter offered by aggregators to provide more visibility and in turn generate more orders.
Get Your Own Customized App
While having a presence on such 3rd party online food ordering platforms helps you increase your reach, it is always good to have your own mobile app that will let your customers order food online. Know why?
1.) You don't have to share profits or pay any commission to 3rd party food aggregators.
2.) You can give a discount on the first order varying from 10–15% to motivate your customers to try your app.
3.) You can come up with app-only specials exclusive for your app customers.
4.) All the customer data is captured while ordering from your brand app. Thus, you can market directly to them. You can reach out to the customer directly on their birthdays & anniversaries or send them push notifications regarding festival offers.
Of course, a restaurant cannot expect business from day one on the app. Building the audience on the app is a slow and steady process, but it’s worth every minute of your time in the long run.
Uengage develops android and iOS apps for restaurants, such that you can build your brand and increase customer retention. With no percentage commissions, you can save 1000s of rupees each month by converting 3rd party app customers to your mobile app customers.