Delivery marketplaces bring restaurants new customers, and that's genuinely valuable. But they charge for it on every single order, including orders from customers who already know and love you.
The simple maths
Your yearly commission cost is roughly:
Orders per month × average order value × commission rate × 12
A restaurant doing 600 marketplace orders a month at an average of $25, paying 25% commission, hands over about $3,750 a month, or $45,000 a year. Your own numbers will differ, so try our commission calculator.
The hidden costs
Commission is only the visible part. Restaurants that rely only on marketplaces also:
- Don't own their customer data, so they can't easily invite regulars back
- Compete on the same screen as every nearby restaurant
- Raise menu prices on the app to cover fees, which can put customers off
- Depend on someone else's rules, rankings and fee changes
The hybrid approach
You don't have to quit delivery apps. The smartest strategy for most restaurants is hybrid:
- Use marketplaces for discovery: new customers finding you
- Use your own ordering website for loyalty: repeat customers ordering direct
- Put your website on packaging, receipts, menus and social media
Move even a third of your repeat orders to your own website and the savings are significant, because those orders carry no marketplace commission.
Getting your own ordering website
Your own ordering website used to mean hiring developers. Today it doesn't. With the HMO Restaurant Web Ordering System, we set up a branded ordering website on your own domain, handle hosting and security, and give you a simple dashboard to manage your menu and orders. Book a free demo to see yours.