Turning the Tables: Capitalizing on Restaurant Aggregators

By Brian Duncan

The argument is over! Right? Restaurant aggregators like Grubhub/Seamless and Eat24 are here to stay. Now we can focus on how to use these tools as revenue generating engines for your restaurant.

It is common knowledge that the percentage of profit withheld by restaurant aggregators can make it difficult to find an upside, but trust me it’s there, you just have to look a little harder.

Following these 3 steps will increase revenue from restaurant aggregators and eliminate the headaches that come with restaurant delivery logistics.

1) Understand your Restaurant Aggregators Pricing Model

It may seem like the pricing models that aggregators come up with require a finance degree in order to understand how your restaurant will make money. Grasping these pricing models is the most important piece to understanding how your restaurant is going to profit. In most cases restaurant aggregators charge a premium for your establishment to show up on the first page of a search. This can be an expensive yet valuable tool to drive new customers to your restaurant and introduce them to your products.

Most restaurants seek extra business on slower days during the week and those odd hours between lunch and dinner. So why not only pay for premium placement during your slow times? Page placement is not a permanent decision and can be adjusted at any time. Monitoring your page placement will allow your restaurant to drive delivery and pick up business when empty by paying for premium visibility, while saving money when your restaurant is full by settling for a less desirable placement. Be sure when choosing an aggregator that they allow this type of flexibility with your page placement. It could mean the difference of 10% to your top line revenue.

2) Use Multiple Restaurant Aggregators

Online ordering tools are definitely an acquired taste. Each individual user believes the aggregator they use offers the best user experience, the most restaurant options and realistic delivery times. In reality there is not much separating one aggregator from another. So why not just take them all? The argument in prior years has always been that managing multiple tablets and fax machines is a recipe for disaster. But now there are companies like Chowly Inc. who integrate all of your restaurant aggregators directly into your point of sale system eliminating the need for any extra hardware. Also, having multiple aggregators will allow your restaurant to reach a larger audience and in some cases provide leverage to negotiate a better price.

3) Do you Need Delivery Drivers?

This is when it can get a little tricky. There are companies like Postmates, Door Dash, and Uber Eats who will provide a restaurant aggregator tool as well as drivers to pick up the food and deliver it to the final destination. This can be very useful because it saves on cost, risk and logistical headaches that come with managing a fleet of delivery drivers. But beware because these services come with a premium price, and in some cases as much as 30% per delivery. Be sure to understand the cost of managing delivery yourself as opposed to outsourcing to one of these aforementioned aggregators.

You also want to make sure they will take deliveries that are not originated from their aggregators. Lastly, there are third-party companies, like Zoomer, whose focus is only on food delivery. These types of businesses will assume the risk, manage multiple locations, and often do a good job for a more affordable price.



Posted on Wed, Sep 07, 2016 @ 07:09 AM.
Updated on March 11, 2020 @ 6:13 PM PST.

Posted by Brian Duncan

Looking for more tips on how to manage restaurant delivery technology? Be sure to visit Chowly Inc. regularly for more info.

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Tags: Online Ordering, restaurant delivery

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