To stay relevant and reach a broader audience, many independent restauranteurs are jumping on the online ordering bandwagon. However, partnering with third-party sales processing and delivery companies, such as Grubhub, isn’t a cut-and-dried matter. The best way to determine if an online ordering and delivery service is right for your restaurant is to understand how these types of deals are structured and how the actual ordering process works.
For the sake of simplicity, we will use Grubhub as the primary example; it is by far the leader in market share and has been eating up the competition for years. Thus far, Grubhub has purchased Seamless, Yelp’s Eat24, Delivered Dish, Restaurants on the Run, LA Bite, Dotmenu, AllMenus, campusfood and more. There are other services out there, like DoorDash and UberEATS, but they are significantly smaller and only really used in select regions. Thus, if a business owner is considering a restaurant delivery service, they are (or should be) looking at Grubhub.
Here’s how the restaurant partnership program works.
Commission rates + sponsored listings
While many online services claim that their restaurant partners increase sales by using such platforms, there’s a tendency among the major online restaurant-delivery players to highlight how much sales will be boosted and completely avoid the topic of commissions. In this fashion, Grubhub does not list commission rates or averages anywhere online. Generally speaking, most software and tech services that don’t list prices online are targeting enterprise-level businesses that can afford to spend large sums of money for custom products (and because pricing may vary based on a corporation’s size). Grubhub-type services, on the other hand, target smaller local businesses with lower budgets.
To get a basic idea of how commissions are structured, I called Grubhub and asked about their options for restaurant partners. The first thing I was told was that Read More Here