The impact of technology has made it easier for people to avail of services. Right from taxis, the Uber wave has transcended boundaries. The food delivery sector is no exception. People prefer ordering food at the convenience of their homes rather than spending time and energy reaching restaurants. As a dark cloud with a silver lining, COVID-19 has made restaurants rethink their stand on food delivery apps.
With no way to reach out to potential customers, should restaurants join hands with food delivery apps? Will they be able to cope with the commission scale? From an entrepreneurial perspective, rectifying the cons can prove to be a major game changer in pulling the restaurants towards an UberEats clone. This blog provides both pros and cons of restaurants signing up with third-party aggregators.
Taking restaurants online
Medium and small scale restaurants find it difficult to make an online presence as they cannot dedicate a specific budget to develop an app. Signing up with these platforms is an ideal way to boost visibility. This way, by gaining a place in third-party food delivery platforms, even customers who aren’t well-acquainted with such restaurants order food. Hence, an app like UberEats builds brand value for restaurants.
Supplement to declining dine-in trends
Even in the pre-COVID-19 era, there was a shift in the tendency among the audience. They were more convenient with food deliveries rather than dine-ins. As a result, restaurants experienced a reduction in sales. By collaborating with online mediums, they can recover their losses as they can reach out to potential customers. Food delivery apps appear to bridge the gap between customers and restaurants, leading to a likely win-win-win situation.
Commissions become too much to handle
By linking restaurants with customers, food delivery platforms demand a fixed percentage of users’ payments as commissions. On average, the commission scale varies anywhere between 15-30%, depending on the platform. Giving up a part of income every time makes it challenging for restaurants to manage expenses.
Taking the blame
Things can get out of control in unforeseen circumstances. During such cases, the reputation of restaurants becomes a significant talking point rather than an aggregator. Even if the mistake lies with the platform or the delivery chain, restaurants take up the blame, significantly hampering their brand value. By doing so, they lose potential customers without even a mistake from their side.
The COVID-19 pandemic has eliminated dine-ins out of the ecosystem. With restaurants measuring the possibilities of joining hands with food delivery apps, an entrepreneur can lure them towards his/her food delivery platform. A robust UberEats clone with a variable commission scheme and an efficient delivery chain can gain an irreplaceable place among customers and restaurants.