The Hidden Costs of Third Party Food Ordering Apps

October 15, 2023 by Naveen

Third-party platform challenges

Ordering food online has become a regular part of our lives. But for restaurant owners, using third-party platforms to serve their customers comes with a cost. While these platforms might bring more orders, they also bring hidden charges that can eat into profits. Let's dive into understanding these costs and how they impact restaurants.

The True Impact of Commission Fees

Every time a customer orders through a third-party service, the restaurant pays a fee. These commissions can range between 15% to 30% per order, a substantial portion of the earnings. Added are the additional costs for being featured or promoted on these platforms. Over time, these amounts can significantly reduce a restaurant's take-home revenue.

Boosting Profits with Branded Digital Solutions

Restaurants can take control of their online orders by using custom mobile apps and digital platforms. By doing this, they avoid paying commissions, keep all their profits, and increase their brand visibility. A custom app can also offer unique features like geolocation, giving customers personalized offers based on location and leading to more sales.

Restaurant app interface
App Benefits

Customer Retention: Aggregator Platforms vs. Custom Apps

Using third-party platforms can also mean losing customers to competitors. When someone searches for food, they get multiple options, making it easy to try something new. Plus, these platforms might not show a restaurant's full menu or do not allow special interactions with customers. A custom app, on the other hand, lets restaurants showcase everything they offer and engage directly with their customers. This can lead to more repeat orders and stronger loyalty from customers.

Enhancing Customer Insights Through Direct Data Access

One of the less talked about yet significant drawbacks of relying on third-party platforms is the need for direct access to customer data. When orders come through these platforms, restaurants take advantage of valuable insights that could be used to tailor marketing strategies and improve services. Owning your customer data through a custom app helps personalize the customer experience and provides essential analytics to make informed decisions about your restaurant’s offerings and promotions. This data-driven approach can be a game-changer in understanding and catering to your customer base more effectively.

Geolocation on app
Location Pin

Maximizing Operational Efficiency with Integrated Systems

In digital food ordering, the efficiency of your operational systems is as crucial as the front-end experience. Integrating your custom mobile apps and digital platforms with your restaurant’s internal systems leads to smoother operations. This integration streamlines order tracking, inventory management, and customer service. Such a system enhances the effectiveness of your restaurant's operations and ensures a seamless experience for your customers, from order placement to delivery. By adopting an integrated approach, restaurants can significantly reduce operational hiccups, ensuring every aspect of the customer journey is as efficient and enjoyable as possible.

Frequently Asked Questions

Third-party platforms often charge significant commission fees, reduce branding opportunities, and limit direct customer engagement. This can lead to decreased profit margins and less control over the customer experience.

A dedicated app establishes a direct relationship with your customers, enhances brand loyalty, and often results in larger order sizes. Plus, it offers marketing freedom, unlike third-party platforms.

Absolutely! Geolocation ensures efficient food delivery by providing accurate locations. It can also be used for targeted marketing, offering deals to customers nearby, and improving the overall user experience.

Brand Resto's apps offer a direct channel to your customers, eliminating commissions. They boost branding, allow for personalized offers, and give you full control over your menu and customer interactions.

Brand Resto ensures you keep all profits and enhances customer retention. Our platform is designed specifically for restaurants like yours, aiming to maximize revenue, build brand loyalty, and offer an exceptional user experience. Join us and elevate your online food ordering journey.

Still have any questions? Contact us


In wrapping up, let's reflect on the key points we've discussed about the evolving world of online food ordering for restaurants:

Reduced Hidden Costs: Stepping away from third-party platforms reduces hefty commission fees, positively impacting your bottom line.

Reduced Hidden Costs:

Moving away from third-party platforms is a strategic move towards financial autonomy. By avoiding these platforms, restaurants can significantly cut down on often overlooked hefty commission fees. This change alone can profoundly impact your bottom line, allowing more of your profits to stay within your business.

Branding and Profitability:

  • Own Your Brand: Utilizing custom mobile apps goes beyond just financial benefits; it’s about establishing and reinforcing your brand’s identity in the digital space. These apps serve as a direct channel to your customers, amplifying your brand’s visibility and recognition in the market.
  • Keep All Profits: One of the most tangible benefits of distancing yourself from third-party services is the retention of all your earnings. This approach ensures that every cent your customers spend contributes directly to your restaurant's revenue, free from external cuts or fees.

Customer Retention and Loyalty:

  • Direct Engagement: In the modern era of food services, building and maintaining customer relationships is paramount. By interacting directly with your clientele through your platforms, you cultivate loyalty and encourage repeat business. This direct line of communication allows for more personalized and impactful customer interactions.
  • Full Menu Display: A significant advantage is the freedom to display your entire menu without limitations or third-party constraints. It empowers restaurants to fully showcase their culinary offerings, catering to a broader range of customer preferences and dietary needs.
  • Geolocation Features: Implementing geolocation tools in your digital offerings can create unique, location-specific customer experiences. This technology enables targeted promotions and services, enhancing the convenience and appeal of ordering from your restaurant.

Data-Driven Decisions:

  • Access to Customer Data: Direct access to customer data is invaluable in a data-driven business landscape. This information can be leveraged to tailor marketing strategies, refine service offerings, and make informed decisions that resonate with your target audience.
  • Personalized Offerings: With customer insights, restaurants can offer personalized menus and promotions. This level of customization not only meets customer expectations but often exceeds them, fostering a sense of value and appreciation among your patrons.

In embracing these strategies, restaurant owners can navigate away from the limitations imposed by third-party food ordering platforms. This shift towards digital self-reliance and customized solutions paves the way for a more profitable, customer-centric, and resilient business model. In the dynamic world of the restaurant industry, these changes are beneficial and essential for long-term success and growth.


Naveen Veldanda

Professional Software Developer/Tech Enthusiast/Digital Marketing Expert - I am fortunate to have learned from top minds in tech and restaurant owners. When I'm not developing software, I can usually be found exploring the latest trends in digital marketing or programming innovative digital solutions.

Brand Resto

Experience the transformative power of secure, cost-effective, and contactless dine-in and online ordering solutions tailored for your restaurant. Founded in 2020, Brand Resto is a dynamic and innovative company committed to making digital ordering services accessible to all restaurants worldwide. Leveraging our extensive experience in delivering high-quality software solutions and services, we cater to a diverse clientele with a wide array of technologies. Our services include application development, machine learning solutions, business process automation, and cloud-based applications. Our primary objective is to bridge the gap between the evolving needs of modern businesses with our cutting-edge digital solutions. We pride ourselves on providing top-notch services and fostering long-lasting relationships with our clients. Together, let's elevate your business to new heights!

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