Quick Service Restaurants (QSR) live and by the razor-thin margins and speed of service they’ve become known for—and online ordering has become a critical tool for these restaurants to wield.
The truth is, the online ordering craze has only been sped up by COVID—and things aren’t going back to the way they were. Smaller franchises and independent store owners must take note that they need to be seen on the internet.
For many store owners, that means sorting out how to get DoorDash, Grubhub, UberEats, and other apps to list your stores and get customers’ eyes on your business. Their models are alluring, and the idea of having someone else deal with the advertising and integration is comforting.
However, these apps need to get their cut, and one of the ways online ordering impacts your QSR business is in the reduction of already-thin margins. Here’s how much profit you’re losing to the delivery apps—and, how online ordering can be just one of the many ways Franpos streamlines and integrates your business.
How Online Ordering on Delivery Apps Impacts Your Revenues
Many store owners assume that the way these delivery apps are able to turn a profit is in their delivery fee. It’s comforting to think that the brunt of the cost of these apps is bared by the customer, but unfortunately, it is the QSR business itself that is paying for the service.
Take Grubhub, for example. Yes—they place a delivery fee onto your customers as they place an order for your food at checkout—but not a cent of this goes to you, but rather, Grubhub itself.
Instead, Grubhub takes on the marketing for you and takes a steep cut on each individual order. 20% of each order is taken as a marketing fee each time an order is placed, and that isn’t counting processing fees, which are roughly 3%.
Bear in mind that this marketing fee doesn’t include the benefit of having a driver come out to your store and take your product right to customers’ doors. That’s another 10%.
That comes out to one-third of total revenue—is that something your restaurant can afford?
It’s common for many smaller restaurants to simply raise their prices on apps like Grubhub to counteract high fees, but this is an impact felt squarely by customers. Higher fees on apps, particularly to customers that often come in-store or otherwise know your pricing, will ultimately reduce sales and revenue long-term.
How Franpos Can Help
Setting up your own online store can be a massive headache, and you have a business to run! So instead of paying for marketers to set up a website at the cost of thousands, consider an all-in-one solution such as Franpos.
Franpos handles your point of sale and replaces your existing register—but it does so much more. On the Franpos system, your QSR locations can use a beautifully designed website and online ordering space made for your customers to use. They can then rack up loyalty points based on rules you set, then order food which is sent directly to your in-store registers and kitchen display systems.
The Franpos solution also gives you powerful growth marketing tools for you to easily reach out to customers automatically. And, if you choose to be listed on Postmates, the Franpos solution also allows you to send orders directly to their drivers right from your register!
There’s a lot to the Franpos solution we haven’t covered, but if you’re looking to avoid the tireless fees that come from delivery apps and work directly with your customers to increase revenues, schedule a free demo with us today and we’ll give you the full story.