GrubHub

Discussion in 'Marketing / Increasing Sales' started by kjs421, Feb 14, 2017.

  1. kjs421

    kjs421 Member

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    We have a pizza shop and are number 7 on the list of 8 restaurants in our area on GrubHub. Now paying 12.5% and they want to move us to the top for better viewing and receive more orders for 17.5%.
    Would it benefit us to pay a higher rate and be at the first position? This of course would cost more per order.
    Any advise appreciated.
    Thanks
     
  2. RobT

    RobT Active Member

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    I still don't understand how grubhub gets away with percentAges like this.

    Unless doing serious volume, I would lose money.

    I'm wondering if it's possible to steer them to your own in house online ordering site.


    Sent from my iPhone using Tapatalk
     
  3. d9phoenix

    d9phoenix Well-Known Member

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    It would depend on your profit margins. A sale does not equal a profit. If that percentage doesn't allow YOU to make a profit. Then the sale is NOT worth it.

    Personally i used grubhub for about 2 months and then dropped them like a box of rocks. Worthless money sucking leeches imo.
     
  4. tguag

    tguag Active Member

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    I've learned a lot about grubhub by simply changing my % and checking the results... truth be told if you are not paying extra to be on the first page it doesn't matter what you pay...I was paying $5 dollars an order (we are grandfathered into the original price structure of flat per order pricing.) and that was taking me to the 5th page of results, so I dropped it down to $3 and that brought me to the 12th page...guess what, same amount of orders were coming in.

    if there are only 8 restaurants in your area advertising on grubhub I would pay them as little as possible because you will still be on the first page of results and that's where you wanna be...would you get more biz if you were at the top of the list...maybe, but I don't think the extra expense on all the orders will offset the extra business.
     
  5. kjs421

    kjs421 Member

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    Thank you all for replying.
    I was wondering if any of you or others reading this has an APP for your shop for customers to order and wean customers off of GrubHub?
     
  6. tguag

    tguag Active Member

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    I have ordering online and it is a mobile website but no app. Unfortunately Chicago is home to grubhub and they have a strangle hold on the city; everyone uses it.
     
  7. Joe

    Joe Active Member

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    Customers also search the restaurants by Rating and we're one of the highest so I just dropped us to the lowest bracket (10%) and kept the customer service and food quality high. We're on page 17 technically until someone does some sort of search and boom we're at the top. GH isn't as big in SF anymore with all the newer 3rd party services. Eat24 is yuge here and even more so since Yelp (who's HQ is in SF) acquired them a year or so ago. Way better site to use as a restaurant owner than GH, but at the end of the day, it all depends on what market you're in and who's the most used 3rd party service(s). Door Dash is king in LA but up here they're just a little guy.
     
  8. Joe

    Joe Active Member

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    I mentioned awhile back that I did a box topper on orders that went to Eat24 or GrubHub customers in attempt to steer them to my online ordering site. After 8 months or so of doing this, it's been a huge help and get a lot more orders from my site now from those old Eat24/GH customers. The box topper was big and bold promoting our online ordering on our site and offered a coupon code for people to save 5% by using my site instead of theirs. Instead of paying GH/Eat24 their 10% fee, I offered half that, saved money by doing so, and also saved those customers money as well. The box toppers were free from a MailShark promotion as well so it was no cost to me.
     
    Last edited: Feb 20, 2017
  9. Joe

    Joe Active Member

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    As a former economist, I respectfully disagree. My advice is to not rely solely on their business, but to use them to add sales to your day, especially during the slower times. If you have people on site and can get another 10-20 orders a day using the same amount of labor that's already on site, you can profit from these 3rd party services. Also helps if the services can be integrated into your POS system.

    For example, I use Eat 24 and get an extra 20 orders per weekday(Mon-Thurs) from them alone and my average check is $30/order making an average of $600/sales from Eat 24 each day alone. I added them to my already established phone orders, my website online ordering company, walk ins, dine ins, etc and pay them 10% for an average of $600/sales (netting $540/sales per day)using the same staff labor that I'd have whether they were giving us orders or not. You can also write these fees off as an advertising expense on your taxes.
     
    idahopizzaman likes this.
  10. kjs421

    kjs421 Member

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    Thanks everyone
     
  11. kjs421

    kjs421 Member

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    Hey Joe
    What are you using for your own online ordering site?
     
  12. Deepti12

    Deepti12 New Member

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    We have a pizza shop and are number 7 on the list of 8 restaurants in our area on GrubHub. Now paying 12.5% and they want to move us to the top for better viewing and receive more orders for 17.5%.
    Would it benefit us to pay a higher rate and be at the first position? This of course would cost more per order.
    Any advise appreciated.
    Thanks

    What are you using for your own online ordering site. like currently i m using ORDO now
     
    Last edited: Feb 14, 2018
  13. tguag

    tguag Active Member

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    If you are on the first page of results, I'm assuming you are because you say there are only 7 other restaurants around, you have no reason to jump to a higher tier. Higher tiers are for areas with more competition those will give you more exposure but you don't need it because you have no competition.

    If you wanna test it out jump to 17.5% for a month or two see if you get any more orders. if not jump back down to 12.5% they don't penalize you for jumping around. Better yet ask your sales guy to run a trial at the higher or highest rate for a few days at no additional cost to you. If there is a boost to business that's worth the extra $$ then stick with it, if not say thanks anyway.
     
  14. Mondo

    Mondo Active Member

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    12.5% is actually the lowest percentage I've ever heard of associated with any of these 3rd party delivery companies. Uber Eats just came into my area and offered 35% with $500 activation fee lol.
     
  15. kjs421

    kjs421 Member

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    We are up to 15% with GH. Uber Eats came in with same deal. If we could raise prices on their site I almost think it would be cheaper to let them deliver compared to us hiring more drivers.
     
  16. Deeptiucc

    Deeptiucc New Member

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    I have ORDO and it is a website and app also. working on Bhopal(India) everyone uses it
     
  17. Joe

    Joe Active Member

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    You can talk those down. Pin them against each other and they basically help you talk each one down.

    I had Door Dash and UberEats jockeying for my business. To start, UberEats asked for 31% and Door Dash was at 28% so I told the UberEats sales guy and they came down to 27.5%. I then called the Door Dash sales guy and told him UberEats was at 27.5%. Door Dash guy says we can do 27.5% but I really can't go lower than that. (I wanted UberEats all along and really only wanted to try one of these services.) I called UberEats guy and told them Door Dash was at 25% (even though they weren't) and UberEats guy had to "make a call to someone above him" and 10 minutes later UberEats guy calls and says he'll do 25% if I sign up today and that "no one else I've ever heard of has a rate this low" and blah blah blah.

    Milk the system and make them work for your business/percentage. To this day, one of the best decisions I ever made was bringing in UberEats last year. Pairing that with MailShark mailers I was already doing and working with the local schools/bar was a huge boost. Profits are thru the roof!