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A real alternative to Just Eat’s ridiculous commission fees

A real alternative to Just Eat’s ridiculous commission fees

A real alternative to Just Eat’s ridiculous commission fees

The Preoday platform is an alternative to Just Eat’s ridiculous commission fees.

The market is dominated by a small number of them; commission charging companies such as Just Eat, Hungry House, and Deliveroo in the UK (and their counterparts GrubHub and Seamless in the USA). They have become almost synonymous with the takeaway restaurant landscape, as today’s mobile-confident consumers click their apps and place orders online.

Before they arrived on the scene, the most common way to order a takeaway was on a landline telephone. However, thanks to the evolution of the mobile phone, this labour-intensive (and less-than-secure) means of taking orders is being replaced by the seemingly ubiquitous click and pay online alternative. The retail sector was largely responsible for the online ordering revolution, but hospitality – and specifically the takeaway restaurant sector – recognised the opportunity and jumped on the band wagon; signing up to Just Eat and Hungry House in their droves.

In the early years, the Just Eat and Hungry House business models made sense. Restaurateurs would pay a commission on each order generated by these online ordering platforms; if there were no orders, there was no commission to pay. On the back of the exposure their businesses enjoyed on these aggregator apps, takeaways saw this as an opportunity to grow their customer base with minimal investment.

Experienced industry figures, however, voiced their concerns about the business model. Commission-free telephone orders were being replaced by something much more expensive.  Apart from the initial set up fees and the cost of obligatory, proprietary hardware, the ongoing commission charges can account for as much as 15% of every order placed on these apps; squeezing already thin profit margins (In the case of Deliveroo, the bill is up to 26%).  As industry veteran, Luke Johnson, observed “Given the sort of net profitability most independent takeaway restaurants achieve, many will be making almost no profit on much of their Just Eat business

Years down the track, the novelty has worn off for many restaurants and the initial benefits have become a source of resentment. Asian Catering Federation chairman, Yawar Khan once said “It’s like a drug. Just Eat would offer great incentives to join, but once they’ve got you hooked it becomes very addictive and then they put their fees up”.

The key issue for restaurants and takeaways is retaining their satisfied customers and being able to call them their own, especially those who have become accustomed to online ordering.  Worse, the online market with its hefty commission bills are replacing telephone orders and growing at a startling 50% per year.  Why should restaurants pay 15% commission to a third party for returning customers? And, why do restaurants allow a third party to interfere with their brand and control their customers? The simple answer is: they don’t have to. Restaurants might offer cash customers a discount for off-peak orders, or another form of incentive to drive new business at certain times of the year but these are typically not aimed at returning customers.

While many restaurateurs and takeaway owners recognise the value of having their own app – one that allows their customers to order and pay online – they are often put off by the time, risk and cost of researching and then finding a reliable developer to build it. Here at Preoday, we offer a unique, ready-built, self-managed on-line platform which allows businesses to get their own app (complete with their own branding) and to start taking customer orders within minutes. Once setup, opening hours, prices and menus can be updated at any time (in real time) and the management dashboard provides invaluable insights into customer ordering trends and behaviour.  And, most importantly, there are no ongoing commission fees to ever pay again.

Find out why Preoday clients are choosing the platform over Just Eat in this case study from our client Red Naga

If you’d like to find out more about our platform, please get in touch.

Other Blog Articles

Exploding commission bills for restaurants and the alternative

Exploding commission bills for restaurants and the alternative

Exploding commission bills for restaurants and the alternative

The market is dominated by a small number of them; commission charging companies such as Just Eat, Hungry House, and Deliveroo in the UK (and their counterparts GrubHub and Seamless in the USA). They have become almost synonymous with the takeaway restaurant landscape, as today’s mobile-confident consumers click their apps and place orders online.

Before they arrived on the scene, the most common way to order a takeaway was on a landline telephone. However, thanks to the evolution of the mobile phone, this labour-intensive (and less-than-secure) means of taking orders is being replaced by the seemingly ubiquitous click and pay online alternative. The retail sector was largely responsible for the online ordering revolution, but hospitality – and specifically the takeaway restaurant sector – recognised the opportunity and jumped on the band wagon; signing up to Just Eat and Hungry House in their droves.

In the early years, the Just Eat and Hungry House business models made sense. Restaurateurs would pay a commission on each order generated by these online ordering platforms; if there were no orders, there was no commission to pay. On the back of the exposure their businesses enjoyed on these aggregator apps, takeaways saw this as an opportunity to grow their customer base with minimal investment.

Experienced industry figures, however, voiced their concerns about the business model. Commission-free telephone orders were being replaced by something much more expensive.  Apart from the initial set up fees and the cost of obligatory, proprietary hardware, the ongoing commission charges can account for as much as 15% of every order placed on these apps; squeezing already thin profit margins (In the case of Deliveroo, the bill is up to 26%).  As industry veteran, Luke Johnson, observed “Given the sort of net profitability most independent takeaway restaurants achieve, many will be making almost no profit on much of their Just Eat business

Years down the track, the novelty has worn off for many restaurants and the initial benefits have become a source of resentment. Asian Catering Federation chairman, Yawar Khan once said “It’s like a drug. Just Eat would offer great incentives to join, but once they’ve got you hooked it becomes very addictive and then they put their fees up”.

The key issue for restaurants and takeaways is retaining their satisfied customers and being able to call them their own, especially those who have become accustomed to online ordering.  Worse, the online market with its hefty commission bills are replacing telephone orders and growing at a startling 50% per year.  Why should restaurants pay 15% commission to a third party for returning customers? And, why do restaurants allow a third party to interfere with their brand and control their customers? The simple answer is: they don’t have to. Restaurants might offer cash customers a discount for off-peak orders, or another form of incentive to drive new business at certain times of the year but these are typically not aimed at returning customers.

While many restaurateurs and takeaway owners recognise the value of having their own app – one that allows their customers to order and pay online – they are often put off by the time, risk and cost of researching and then finding a reliable developer to build it. Here at Preoday, we offer a unique, ready-built, self-managed on-line platform which allows businesses to get their own app (complete with their own branding) and to start taking customer orders within minutes. Once setup, opening hours, prices and menus can be updated at any time (in real time) and the management dashboard provides invaluable insights into customer ordering trends and behaviour.  And, most importantly, there are no ongoing commission fees to ever pay again.

Other Blog Articles

Exploding commission bills for restaurants and the alternative

Exploding commission bills for restaurants and the alternative

Exploding commission bills for restaurants and the alternative

The market is dominated by a small number of them; commission charging companies such as Just Eat, Hungry House, and Deliveroo in the UK (and their counterparts GrubHub and Seamless in the USA). They have become almost synonymous with the takeaway restaurant landscape, as today’s mobile-confident consumers click their apps and place orders online.

Before they arrived on the scene, the most common way to order a takeaway was on a landline telephone. However, thanks to the evolution of the mobile phone, this labour-intensive (and less-than-secure) means of taking orders is being replaced by the seemingly ubiquitous click and pay online alternative. The retail sector was largely responsible for the online ordering revolution, but hospitality – and specifically the takeaway restaurant sector – recognised the opportunity and jumped on the band wagon; signing up to Just Eat and Hungry House in their droves.

In the early years, the Just Eat and Hungry House business models made sense. Restaurateurs would pay a commission on each order generated by these online ordering platforms; if there were no orders, there was no commission to pay. On the back of the exposure their businesses enjoyed on these aggregator apps, takeaways saw this as an opportunity to grow their customer base with minimal investment.

Experienced industry figures, however, voiced their concerns about the business model. Commission-free telephone orders were being replaced by something much more expensive.  Apart from the initial set up fees and the cost of obligatory, proprietary hardware, the ongoing commission charges can account for as much as 15% of every order placed on these apps; squeezing already thin profit margins (In the case of Deliveroo, the bill is up to 26%).  As industry veteran, Luke Johnson, observed “Given the sort of net profitability most independent takeaway restaurants achieve, many will be making almost no profit on much of their Just Eat business

Years down the track, the novelty has worn off for many restaurants and the initial benefits have become a source of resentment. Asian Catering Federation chairman, Yawar Khan once said “It’s like a drug. Just Eat would offer great incentives to join, but once they’ve got you hooked it becomes very addictive and then they put their fees up”.

The key issue for restaurants and takeaways is retaining their satisfied customers and being able to call them their own, especially those who have become accustomed to online ordering.  Worse, the online market with its hefty commission bills are replacing telephone orders and growing at a startling 50% per year.  Why should restaurants pay 15% commission to a third party for returning customers? And, why do restaurants allow a third party to interfere with their brand and control their customers? The simple answer is: they don’t have to. Restaurants might offer cash customers a discount for off-peak orders, or another form of incentive to drive new business at certain times of the year but these are typically not aimed at returning customers.

While many restaurateurs and takeaway owners recognise the value of having their own app – one that allows their customers to order and pay online – they are often put off by the time, risk and cost of researching and then finding a reliable developer to build it. Here at Preoday, we offer a unique, ready-built, self-managed on-line platform which allows businesses to get their own app (complete with their own branding) and to start taking customer orders within minutes. Once setup, opening hours, prices and menus can be updated at any time (in real time) and the management dashboard provides invaluable insights into customer ordering trends and behaviour.  And, most importantly, there are no ongoing commission fees to ever pay again.

Other Blog Articles

Exploding commission bills for restaurants and the alternative

Exploding commission bills for restaurants and the alternative

Exploding commission bills for restaurants and the alternative

The market is dominated by a small number of them; commission charging companies such as Just Eat, Hungry House, and Deliveroo in the UK (and their counterparts GrubHub and Seamless in the USA). They have become almost synonymous with the takeaway restaurant landscape, as today’s mobile-confident consumers click their apps and place orders online.

Before they arrived on the scene, the most common way to order a takeaway was on a landline telephone. However, thanks to the evolution of the mobile phone, this labour-intensive (and less-than-secure) means of taking orders is being replaced by the seemingly ubiquitous click and pay online alternative. The retail sector was largely responsible for the online ordering revolution, but hospitality – and specifically the takeaway restaurant sector – recognised the opportunity and jumped on the band wagon; signing up to Just Eat and Hungry House in their droves.

In the early years, the Just Eat and Hungry House business models made sense. Restaurateurs would pay a commission on each order generated by these online ordering platforms; if there were no orders, there was no commission to pay. On the back of the exposure their businesses enjoyed on these aggregator apps, takeaways saw this as an opportunity to grow their customer base with minimal investment.

Experienced industry figures, however, voiced their concerns about the business model. Commission-free telephone orders were being replaced by something much more expensive.  Apart from the initial set up fees and the cost of obligatory, proprietary hardware, the ongoing commission charges can account for as much as 15% of every order placed on these apps; squeezing already thin profit margins (In the case of Deliveroo, the bill is up to 26%).  As industry veteran, Luke Johnson, observed “Given the sort of net profitability most independent takeaway restaurants achieve, many will be making almost no profit on much of their Just Eat business

Years down the track, the novelty has worn off for many restaurants and the initial benefits have become a source of resentment. Asian Catering Federation chairman, Yawar Khan once said “It’s like a drug. Just Eat would offer great incentives to join, but once they’ve got you hooked it becomes very addictive and then they put their fees up”.

The key issue for restaurants and takeaways is retaining their satisfied customers and being able to call them their own, especially those who have become accustomed to online ordering.  Worse, the online market with its hefty commission bills are replacing telephone orders and growing at a startling 50% per year.  Why should restaurants pay 15% commission to a third party for returning customers? And, why do restaurants allow a third party to interfere with their brand and control their customers? The simple answer is: they don’t have to. Restaurants might offer cash customers a discount for off-peak orders, or another form of incentive to drive new business at certain times of the year but these are typically not aimed at returning customers.

While many restaurateurs and takeaway owners recognise the value of having their own app – one that allows their customers to order and pay online – they are often put off by the time, risk and cost of researching and then finding a reliable developer to build it. Here at Preoday, we offer a unique, ready-built, self-managed on-line platform which allows businesses to get their own app (complete with their own branding) and to start taking customer orders within minutes. Once setup, opening hours, prices and menus can be updated at any time (in real time) and the management dashboard provides invaluable insights into customer ordering trends and behaviour.  And, most importantly, there are no ongoing commission fees to ever pay again.

Other Blog Articles

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