The True Cost Of Online Ordering

Thank you for the introduction! I'm happy to be a columnist and enjoy breaking down complex topics for readers. Today, I want to explore the true cost of online ordering for restaurant businesses.

Online ordering has become increasingly popular in recent years, especially in the wake of the COVID-19 pandemic. Consumers enjoy the convenience of ordering food from their favorite restaurants with just a few clicks, and restaurants benefit from the increased sales and access to a broader customer base. However, there are hidden costs associated with online ordering that many people may not be aware of.

First, there are the fees that third-party platforms like DoorDash, Uber Eats, and Grubhub charge restaurants. These fees can be as high as 30% of the total order, which can add up quickly and significantly impact a restaurant's profits. Additionally, restaurants often have to absorb the cost of packaging and utensils, which can be expensive and create waste.

Another hidden cost is the impact on the restaurant's own online presence. When customers order through third-party platforms, the restaurant loses valuable customer data, such as contact information and ordering preferences. This makes it difficult for restaurants to build a direct relationship with their customers and market to them effectively.

There are also operational costs to consider. Restaurants may need to hire additional staff to handle the increase in orders, which can be expensive and create scheduling challenges. Additionally, managing multiple platforms and orders can be time-consuming and create additional work for staff.

Finally, there are the potential reputational risks associated with online ordering. When orders are delayed or incorrect, it can reflect poorly on the restaurant's reputation, even if it's not their fault. This can lead to negative reviews and a loss of customers.

Despite these challenges, online ordering is not going away anytime soon, and restaurants need to find ways to adapt and manage these costs. One solution is for restaurants to develop their own online ordering systems, which can help them avoid the fees associated with third-party platforms and maintain control over their customer data.

Another solution is for restaurants to partner with third-party platforms that offer more favorable terms, such as lower fees or better data sharing. Restaurants can also consider bundling delivery with other services, such as catering or takeout, to create additional revenue streams.

Ultimately, the true cost of online ordering for restaurant businesses is complex and multifaceted. While there are clear benefits to offering online ordering, such as increased sales and access to a broader customer base, there are also hidden costs that restaurants need to be aware of. By understanding and managing these costs, restaurants can maximize the benefits of online ordering and build sustainable, profitable businesses.