4 Reasons Why Restaurants Should Not Work With 3rd-Party Apps

There are plenty of 3rd party apps available in the market today that let you list your restaurant on their apps. Though it may seem like a harmless option and in fact attractive at first to list your restaurant, it is actually harming your business. But why? This blog will discuss 4 reasons why restaurants should not work with third-party apps.

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1. Eat Up Your Profits

While it’s tempting to list your restaurant on 3rd party apps to get initial brand exposure so that you can get more orders and more revenue, eventually what it does is actually the opposite.

These 3rd party apps charge around 20-30% commission fee (On average). They add additional fees on every order that you get, which over a period of the time eat into your profit. The more orders you get, the more profit these 3rd party companies make.

Most of the restaurants are also suing these companies for their unethical practices like hidden fees, listing restaurants on their apps without their permission, etc.

Read this article to know why these 3rd party apps are being sued.

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2. They Focus On Growing Themselves And Not On You

These companies have only one goal, i.e. to grow their app. Their marketing campaigns are designed to promote their app and not your restaurant.

All their efforts make sure that their brand names stay on top of the mind while ordering food and not your restaurant’s name, which is exactly opposite to what a restaurant owner wants.

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3. They Keep Essential Data To Themselves

In this digital age, customer data is everything. Especially for restaurants, customer data is crucial if they want to grow. Data such as customer food preferences, order frequency, past order history, etc. are not shared with the restaurants.

All these 3rd party companies keep this crucial data with themselves to fuel their growth, and not yours, leaving you completely blind about your customers.

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4. They Increase Your Competition

One of the goals of these 3rd party ordering apps is to list as many restaurants as possible. This increases your competition. These companies also charge restaurants to feature them on their front page so that the restaurant that pays them gets more orders. What this means is, even if you are listed on their app and not paying them for these additional services, you are losing to other restaurants that are paying for it.

All these strategies create too much competition among restaurants, A customer has only a limited attention span, and there is a chance that they might not even find you among all these restaurants.

They control the customer experience

Do you want to reward your loyal customers or maybe treat your first customer differently? You can’t provide personalized customer experience to your customers. All of these 3rd party apps control the customer experience and will treat the customers according to how they interact with their app and not your restaurant.

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Want to avoid these 3rd party apps and bring in more in-hand profits?

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