Why Restaurants Are Not Into Multi-Level Ordering Platforms Like Uber Eats
by Ordering on Jun 30, 2022 3:19:22 PM
So, food is supposed to be the top profit-making item on the market, and it will never go anywhere. Why, because to live we have to eat!
With the fast-tracked life that we all live and the introduction of online ordering apps, there is no shortage of food, and there is an abundance of new trendy restaurants cropping up to share with you their delicacies.
You would have thought that platforms like Uber eat and Deliveroo would be a fantastic way for restaurants to reach their consumers and have a love relationship with the service.
However, restaurants hate them, and others are faced with no other option but to use them! So why are restaurant owners hating on Uber Eats and the likes?
High Costing Profit Commissions.
That is a major turnoff for many restaurant owners because the company charges you about 30 to 35% of the order in commission, which is not linked to the initial delivery fee.
However, the commission that eats the profits of the restaurant owners is not the only turnoff for using Uber Eats. See, when delivery apps were invested and introduced onto the market, profit margins of takeaway and restaurants have dropped significantly.
What used to see people earning 10 percent in profits now sees them making only two to four percent.
Many Restaurant Owners Believe That Uber Eats Has Caused Bankruptcy
Many restaurant owners who have contacts in the catering industry also have a firm belief that Uber Eats has forced many owners of restaurants to go bankrupt and close down altogether.
That makes many people hesitate when signing up to join, despite their competitors offering their menu via the app.
Another bad thing with Uber Eats is that owners of the restaurants get forced to pay for mistakes made via the app, even if Uber Eats was at fault.
Meal orders that don’t get processed to the final delivery and make payment once out to the location of the order is another downside of using Uber Eats.
ACCC then got involved and, after conducting an investigation, found that Uber Eats was unfair, creating a very bad imbalance between the two involved parties.
Restaurants Fear Ghost Like Establishments
See, when customers order and the food is cooked on-site and sent out for delivery to the ordering party. It involves a motorbike having to go and send the item and what has been happening is that a lot of customers have stopped going to the restaurants altogether.
Many owners have found their establishments are packed with motorbikes for the delivery men to collect and deliver the orders to their customers.
Yet, the chairs and seating areas inside the physical bricks and mortar shop are empty! It is causing a massive deficit for waiting for staff, and what once used to be booming in house dining industry is starting to resemble a ghost town.
Places have motorbikes for the delivery men and delivery men waiting around to collect their orders, and no physical customers will eat at the restaurant! Therefore rents are being wasted, and many have to run a business that instead sends items off the premises.
Also, when customers eat inside the restaurant, alcoholic beverages are consumed, and it helps restaurant owners be able to keep afloat and maintain a sustainable business.
Other Ordering Applications Are More Effective
But if you are about to sign yourself off from offering your customers the chance to order your food online via an application, then you are not swimming in the correct direction by any means.
Why? Because other alternatives have been proven to be more effective, that charge less and, in most cases, offer you the chance to be able to try them for free.
See, sadly, it is a harsh reality that if you own a business of any type nowadays, the only way to reach more people and keep the business running is by offering online delivery services.
Of course, not a lot of people want to be forced to have to believe this mindset and way of trading, but sadly it is accurate, and if not accepted, you will only sink deep and not be able to float back again to the top of the ocean.
It is time not to allow your competition to have an advantage over you, simply because they offer their wares on a platform for online ordering that you haven’t done yet.
Competition is high, and there should never be a time when restaurant owners are not marketing or looking for other modes of reaching their clients to keep the ball rolling.
Being in the restaurant industry is not all bad, providing you know what you are doing and how to play it right. So, there you have it why Uber Eats is not preferred by restaurant owners.
Are you ready to take the next step? Join Ordering for free today.
Topics: Solutions and Use Cases