I have a friend that is located in an urban city where he gets about 30% of his business through 3rd party online orders but is getting raped by the fees thewy charge (Grubhub 21%, UberEats 30%)…no that is not a typo! Sounds to me like it is a deal with the devil and I am trying to get him to pull the plug on it and get a POS that has it integrated for much less (Revention $99/mo unilimited last time I checked or what I use Foodtec 3% which thought was too much or at least should be tiered…I currently pay approx. $600/mo). He is worried about losing that big chunk of sales but I would at least start to steer them in-house through his website until the customers got used to it and slowly end this deal. These orders come in on a fax for crying out loud!
Have any of you had to deal with this and what woudl you recommend. My place is in suburbia so I am confident it would work in my market, but in his city maybe the customers have already gotten use to ordering from these monsters and any help would be appreciated.
We have Speedline and use Brygid for Online Ordering. We pay a base fee of $150 a month per location and 15 cents an order. We charge a 50 cent surcharge. Last month at one location we did about 650 online orders which after calculating in the 35 cents difference we take in per surcharged we paid out about $30 for that location for a month.
If you get your friend thinking about a POS system, I’ll gladly talk to them about Speedline and what a difference it made at our shops.
Revention actually has one of the Top Online ordering providers (HungerRush) in the US. We recently just surpassed over 1 Billion in Mobile orders for our customers.
Additionally its good practice to only do business with a level 1 PCI-DSS Certified Online Ordering company. You will notice that only the big players maintain this requirement as its very costly. Integration issues are very common in the industry and cause major finger pointing which can be very painful to deal with. Having a company who maintains the right securities, has a very tight integration, and has a great price point are all very good things to consider.
Revention’s Online Ordering Pricing - Unlimited online orders monthly are $79 with no cap/per order fees, this includes all Standard Web Based Orders, Mobile Enabled Website, Mobile App, and Facebook Ordering.
Director of Product Management, Revention
Thanks for the reply Steve…I know there are alot of POS companies that he could do alot better with, but I am more concerned with the transition that once were reliant on these 3rd party services in urban areas that made the switch to their in-house POS (whatever brand) and how it went
Thanks for the reply Laura…so I guess you guys lowered it to $79 since I demo’s your system at Pizza Expo…even better! I thought Revention was really good, but there were certain features that Foodtec has that I cannot live without. Trust me I could purchase an entire new 5 station system with 1yrs of cost savings in online order fees so it is tough to turn down, but I am holding pat for now. Do you have any experience with any of your clients that tried to cut out these 3rd party ordering platforms and how the transition went. My friend woudl prob be interested in Revention since he is on a budget so I can send him your info to follow-up.
We use Brygid also and pay about 1% once it’s all said and done. In 7 years we have never lost an order with them. If the internet is down the fax the order to us. If the power goes out they call the customers and take us offline until we are up again. Super good service.
Yes. We have had a great deal of people who were faced with this challenge of getting their customer to order directly from their Online Site. Especially in the major cities like Los Angeles, New York, and Chicago where these services are pushed heavily.
Our systems have some really great features that will help this transition.
First Time Order Coupons for Online Ordering “Only” Customers – This can be created as a Box Topper Promo, As a message on the bottom of the receipt, hand delivered message from your drivers etc.
First Time Mobile App Ordering Coupon that would require the customer to download and use your Mobile Ordering App in exchange for an aggressive promo. (This also proudly display your company’s logo on the home page of the customer’s phone and gives them 3 click re-order with saved credit card and previous orders)
Integrated Email Marketing in the Revention POS system can segment and email the customers who have order from one of these sources and drive them with to order from you site.
These are a few of the best ways to make the transition, but there are a ton of ides that can be used to get this going.
My team at Revention is solely focused on these types of transitions and I’d love to go into more detail if your friend is interested.
Dave, Just wondering what POS you guys run? I checked Brygid’s page and it looks like they interface with most POS…heck I may look into it for myself if I can save 2% (approx $400/mo) although I would have to see how it would affect my target market email marketing…thanks!
We use Speedline. They work together real well. I think their offices are near each other. We did start out in the 3% fee range. After a few years of increased volume we were able to negotiate a better rate. We use a company called Fishbowl for email.
Let me know if he does this. I’m in SF and currently pay 12.5% for Grubhub and Eat24 but get nearly 40% of our business from these sites as the millennials frequently use these. I printed Box Toppers offering a 5% discount if they use my online ordering site instead which costs me $60/month flat fee. This has helped quite a bit and now those 3rd party sites are only 30% of our business. I also started doing MailShark and promoted this feature on their mailers as well so that’s helped but it’s also $200/week to send those out. You save money in one area but spend it in another. The end game is to get where you don’t have to rely on anyone but your own site and earn as much as possible, profit maximization. I have the same fear as your friend being in a technology based city where people have apps for everything and only use those apps for their everyday lives. They also have tablets and email services so you don’t get faxes, that’s stone age and he likely just never upgraded with them over the years. Grubhub is pathetic anymore honestly.