It's almost time to clock out, and hunger is setting in, with no dinner plans in sight. As an internet-savvy consumer, you hop online to your preferred third-party delivery service to order from your favorite local pizzeria.
Your pizza is on its way, and you feel good about supporting independently-owned restaurants.
Bon appétit?
Actually, many customers don't realize that ordering from third-party delivery services comes at a steep price for some restaurants.
Most online delivery services take a bite out of your favorite restaurant's profits by charging high commission fees per order and potentially inflating menu prices.
Some customers are catching on to this fact. 70% of consumers say they’d rather order directly from a restaurant than a third party. But more than one-third of consumers believe that third-party ordering is the only way to get delivery from their desired restaurant.
It's time we find out why it is vital for customers to order directly from restaurants instead of through a third-party marketplace.
Why Customers Should Order Online Directly From Restaurants
Support Local Restaurants
Cafes and restaurants provide more than just delicious meals to the community. They also provide jobs and help the local economy.
"As a personal consumer, I like to order directly from a restaurant because it gives me the feeling that I am supporting THEM and not a third party," shared ThaoMy Tran, a Menufy sales executive.
Supporting your favorite restaurants is about more than just writing reviews, posting TikToks, and sharing word-of-mouth recommendations.
"I like to explain to foodies that ordering directly from our client's website is the second best thing you can do to support a restaurant, right after giving a great online review with photos! People who order direct can feel good knowing that they're contributing more to their favorite restaurant's bottom line," explained Carlos Gomez, Menufy's onboarding digital marketing specialist.
Restaurants with a steady flow of direct orders coming in will benefit everyone in the neighborhood.
More Profits, Fewer Fees
Some third parties scrape a commission of between 20% and 30% off the top of every order placed on their marketplace. That 20% could instead be going directly into the pocket of a restaurant owner to help them stay afloat or give their staff well-deserved raises.
Menufy's senior sales executive, Sam Kaps, and Sarai Lowder, sales manager, speak with restaurant owners every day who share frustrating stories about third-party services.
Customers can skip the third-party site to order online directly from Pigwich.
"On average, restaurant operators pay an additional 25% commission on your order via big-name delivery sites. Plus, the consumer ends up paying high fees too," shared Kaps.
This truth motivated Menufy to create free websites for our restaurant clients so that they can offer online ordering capabilities directly on their site without worrying about commission fees.
"By ordering directly from a restaurant, you are helping them get a new stove that they really need for their business instead of helping a C-level executive buy a yacht. Ordering from the specific restaurant's website supports the people who actually own it or work there," explained Lowder.
Customers who order their meals from a restaurant's website can save on fees and feel good knowing where the money is going.
Fair Menu Pricing
Because some services are eating into profits, many restaurant owners are forced to raise their prices online.
"It kills local operators to increase their prices. They literally feel horrible doing this. And it can take owners months to fully transition to the new pricing, which can be a stressful process. But this is their only option when customers aren't ordering directly from them because they cannot afford the 25-30% fees from third parties," explained Kaps.
Martin City Brewery has multiple spots across the Kansas City metro, all locations feature direct online ordering.
While some restaurants feel pressure to raise prices, it's also common practice for the ordering services to inflate online menu prices for their own benefit. For example, a customer may be able to get a large pizza in-store for $16.99, but online the price is listed at $18.99. The two-dollar difference isn't going to the restaurant ownership. It's going to the third party, which is also charging the restaurant and consumer additional fees.
At Menufy, our restaurant partners are in complete control of setting their online menu prices, and we never take a cut of the menu sales. Our reps also encourage owners to display the same online pricing as in-store.
Stop the Pay-to-Play Marketplace
Third parties are known for promoting other dining options alongside the customer's desired restaurant. Marketplaces are in control of what consumers see first on the ordering sites. Unless restaurants pay for placement, smaller, independently-owned restaurants get listed right next to big chains or at the bottom of the page.
"Third parties spin a tale that if restaurants pay higher commission fees, then they will get a 'bump' on the marketplace list. However, this message is essentially what they tell every owner," Kaps pointed out.
This kind of pay-to-play system makes it hard for mom-and-pop businesses to get noticed or receive online orders.
Protect Your Data
In a world powered by data, consumers are starting to wonder where their personal information is going.
When customers place their meal orders through online marketplaces, third parties, not the restaurant, are given access to information and data.
"Restaurant operators work tirelessly to connect with customers, but they can't do that because a third party is keeping all of their data," Kaps explained.
Margarita’s in Kansas City, MO makes it easy for customers to order online directly from their website.
Customers can be drawn to sites that look as if they are authorized online ordering portals for their favorite restaurants. "These sources can actually be unapproved partnerships that will be more expensive for both the customer and the restaurant," explained ThaoMy, sales executive at Menufy.
The Last Bite
We all have a favorite neighborhood restaurant where we are familiar with the staff and know the daily specials by heart.
Placing frequent orders at a restaurant is a good way to show support. But ordering brunch or dinner directly from the restaurant’s website versus using a third-party marketplace is the best way to keep a business thriving.
"The less-than-transparent commission and customer fees and the inflated prices in third-party apps are the main reasons I choose to order directly from a restaurant's website," shared Menufy's sales director, Ashishh Desai. "And to keep my data out of the hands of giant corporations."
Looking to order direct from a restaurant near you? Menufy's restaurant portal lists thousands of restaurants and cafes that offer direct online ordering. Discover your new spot today!
At Menufy, we believe in empowering restaurants to be in control of their online experience. We develop direct partnerships with restaurants and provide a free, custom-built website with direct online ordering capabilities.
We never take a percentage of menu sales and restaurant operators can choose to absorb or pass the commission fee to the customer. Plus, we encourage our partners to take full control of their online menus and pricing.
Melissa Dimmitt, Marketing Manager
Melissa is the Marketing Manager for Menufy by HungerRush. She began working with restaurant managers and executive chefs over a decade ago, coordinating seasonal menu releases, executing photoshoots, and creating fresh digital content.