Does anyone know if I can charge more for Grubhub orders?

Discussion in 'Marketing / Increasing Sales' started by Peppydogg, Dec 29, 2019.

  1. Peppydogg

    Peppydogg New Member

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    I can't afford to drop them but the 20% commission we pay is getting ridiculous. I had an idea to charge $1-2 more (than my regular menu prices) per pizza and a few other items. If I can squeeze an extra $100 a week, out of the same number of orders, that would help offset the commission. Does anyone know if this is ok? or do my Grubhub prices have to match my menu? Do they even pay attention? Should I have been doing this all along?
     
  2. kjs421

    kjs421 Member

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    They say they need to match your menu prices. We have a local shop that charges more on menu drive and I bitched multiple times. I hate these third partie a- sholes. GH wants us charging the same price and ontop of that they want us to drop our delivery fee, lower our minimum for delivery and offer specials. Screw GH.
     
  3. Rico

    Rico Active Member

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    You can charge a higher delivery/service charge. Call up and ask your account manager to up your delivery/service charge a couple of dollars per order. Don't take no for an answer!

    On another note, GrubHub got me a couple a years ago. I worked all of this year and half of last year toward getting rid of them while not losing sales. My results year over year are:

    12/5/17 - 12/4/18 I was at 20% commission
    12/5/18 -12/4/19 I switched to 17.5% commission 2/26/19

    GrubHub -19.7%
    Integrated Online Ordering +23.9%
    Total Online Sales +16.8%

    I'm working on my next phase now.

    I've had enough of these 3rd party sites taking money from us and not getting anything in return. They take 20 to 30 percent!
    On a $30 order

    GrubHub Commision (20%) $6
    Food Cost (30%) $9
    Labor with taxes (28%) $8.40
    $23.40

    $30 - $23.40 leaves you $6.60 subtract all your over head and your left with next to nothing.

    This company does not care about you or bringing you business. They don't bring you customers, they bring their customers to you and your customers to them.

    Let me know if you or anyone else wants any help.
     
    RickG and sparrowspizza like this.
  4. brad randall

    brad randall Active Member

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    We have a local sushi place that offers a 30% discount when ordering directly from the store. So their menu prices are set up that they can make the same margin from 3rd-party orders as they would in house. That's one strategy.

    Our delivery fee on the 3rd-party services is higher to offset some of the cost. Our menu doesn't list the amount of our delivery fee though, it just says we have an, "additional fee for delivery."

    As a side note: there are now companies that compile orders from all the 3rd-party companies and send them to you on one device so you can ditch the tablet farm. Chowly is one. Your Fare is another. I'm sure there are more.