Red Brick Research recently released the first in-depth study of takeaway restaurants using Just Eat since the company’s £1.5bn flotation. The results are fascinating and support our efforts to shake up the sector and provide takeaways with a fairer alternative. The report revealed that 66% of Just Eat customers felt its transaction fees are unfair and 53% are looking to leave if an alternative is provided. They are fed up of Just Eat.
Red Brick’s report looked at over 400 UK takeaways using Just Eat and found that Just Eat’s minimum 10% transaction fee is costing restaurateurs £725 per month on average. In fact, over half (52%) said they had lost ‘significant revenue’ because loyal, repeat customers are using Just Eat to place their orders. This has angered takeaway owners, with 49% saying Just Eat makes it harder to build direct relationships with their customers. As we launch our My Order App we are keen to solve this problem for restaurateurs and put them back in control of their customer relationships.
Having spoken to many restaurants in the run up to our launch, we know that the discontent is growing. The research backs this up, showing that as restaurants become more dependent on Just Eat the frustration levels increase. While 57% of those that pay £101-500 monthly commission fees to Just Eat disagree that its fees are fair, this jumps to a whopping 81% for high spending takeaways that have to part with £1,001-£2,000 a month in commission.
The issue in the sector at the moment seems clear. Restaurants feel they have lost control over their customer relationships online, and they are being charged while they are. The fact is, Just Eat has a classic broker model; it matches customers with restaurants. This has proved great for acquiring new customers, but if a restaurant wants to grow and remain profitable, they need to create a direct relationship with their regular customers, unsaddled by ongoing high commissions which eat into margins. At Preoday we’re aiming to make this a possibility.
If you’re fed up of Just Eat and want to find how we can help you instead, please get in touch.
Find out why Preoday clients are choosing the platform over Just Eat in this case study from our client Red Naga.
It’s not as catchy as: ‘When is a door not a door?’ (answer, when it’s a jar) but it speaks to the idea that in-car collection, and the technologies that support it, are flexible enough to bend to the needs of a business and its guests.
Delivery can be daunting to the uninitiated, and it might be tempting to sign up with a third-party ordering aggregator that offers the service, such as UberEats, but other options could suit your business and brand better. Here we present three different ‘levels’ of delivery, starting with the most basic – and cheapest method: doing it yourself.
