Online Ordering Software vs. Third-Party Apps: Which is Better for Your Restaurant?

Introduction: Why Online Ordering Choices Matter More Than Ever

As a restaurant owner, you know the importance of meeting your customers where they are—and today, they’re online. With more people ordering food digitally, it’s crucial for restaurants to have the right online ordering system in place. But the big question is, should you go with third-party apps or an in-house online ordering software? In this blog, we’ll break down the differences, the benefits and drawbacks of each option, and how choosing the right solution can make a big difference in your bottom line. 

What is Online Ordering Software for Restaurants?

Let’s start with the basics. Online ordering software is a digital platform that allows customers to order food directly from your restaurant’s website or mobile app, rather than through a third-party service. 

• Branding Power: This software puts your brand in the spotlight, not a middleman’s. You control the look, feel, and voice of your digital ordering experience. 

• Seamless Management: With your own system, you can update your menu in real-time, integrate with your POS (Point of Sale) system, and manage customer orders effortlessly. 

• Example Solution: FoodChow is a top choice for restaurants wanting a free online ordering system that doesn’t cut into your profit margins. FoodChow allows restaurants to maintain full control of their brand and customer data without commission fees. 

Third-Party Ordering Apps: Convenience with a Catch

Now, let’s look at third-party apps. Platforms like UberEats, DoorDash, and Grubhub let customers order from multiple restaurants in one place. They handle delivery, payments, and even some of the marketing for you. 

• Pros: With a third-party app, you get access to a large, ready-made audience, which can be helpful if you’re new to the market. 

• Cons: The downside? High commission fees, limited control over your branding, and no ownership of your customer data. These apps often charge 15-30% per order, which can drastically cut into your profit margins. 

Why This Matters: Losing customer data means you miss opportunities for direct engagement, loyalty programs, and targeted marketing. Plus, many customers don’t realize that these fees take a significant chunk of your earnings. 

Online Ordering Software vs. Third-Party Apps

Choosing between these options boils down to your priorities as a business owner. Here’s a detailed breakdown of the advantages of online ordering software over third-party apps. 

A. Brand Control & Customization

• Online Ordering Software: When you use a dedicated ordering platform like FoodChow, you can fully customize the experience to reflect your restaurant’s brand. This means logos, colors, and menu descriptions are all consistent with your brand voice. 

• Third-Party Apps: With third-party apps, your restaurant is just one of many, and branding is often minimal. Customers engage with the app’s interface, not yours, which can dilute your brand identity. 

B. Profit Margins

• Online Ordering Software: With an in-house system, you avoid costly commissions. You either pay a small monthly fee or, in the case of FoodChow, pay nothing at all for the basic system. 

• Third-Party Apps: Commissions typically range from 15-30% per order, which can drastically reduce your profits—especially for high-ticket items. 

C. Customer Data & Loyalty

• Online Ordering Software: With platforms like FoodChow, you have full access to customer insights and can run personalized marketing campaigns, offer exclusive discounts, coupons, and combo deals. 

• Third-Party Apps: The app owns the customer data, not you. This limits your ability to build relationships and create repeat business. 

FoodChow Insight: FoodChow’s free online ordering platform gives you direct access to customer data and insights, allowing you to provide personalized discounts, coupons, and combo deals to increase loyalty and repeat business. 

Why Choose FoodChow’s Free Online Ordering System?

For restaurant owners seeking a low-cost, high-impact solution, FoodChow’s free online ordering system is a game-changer. Here’s what sets it apart: 

• Free to Use: FoodChow offers a completely free version for restaurant owners, making it ideal for small and mid-sized businesses. 

• Mobile-Friendly Design: FoodChow’s platform is optimized for mobile, ensuring your customers have a smooth experience whether they’re on their phones or laptops. 

• Customizable Menu: FoodChow lets you design a menu that fully reflects your brand, from dish names to images, making it memorable and easy for customers to navigate. 

• Integrated POS: Sync online orders directly to your restaurant’s POS for easy management and real-time updates. 

FoodChow’s solution brings together the best aspects of online ordering software with affordability and flexibility, making it a top choice for restaurant owners who want to grow their digital presence without the high costs. 

Cost Comparison: Online Ordering Software vs. Third-Party Apps

Let’s get real about the costs associated with each option. For many restaurant owners, the expenses tied to third-party apps can be a deal-breaker. 

Third-Party Apps

• Commission Fees: Typically 15-30% per order, depending on the platform and location. 

• Additional Costs: Listing fees, promotional fees, and delivery service charges can all add up, cutting deeply into your profits. 

Online Ordering Software

• Fixed Fees or Free Options: Many software providers, including FoodChow, offer free options for restaurants.  
• Lower Overhead: No hidden fees or per-order commissions mean you retain more of each sale. 

Conclusion

The decision between online ordering software and third-party apps can have a lasting impact on your restaurant’s success. While third-party apps offer some convenience, their high costs and limited customization make them a difficult choice for many restaurants. On the other hand, platforms like FoodChow offer a commission-free solution on cash transaction that’s both affordable and fully customizable. 

By choosing a system like FoodChow, you gain: 

• Complete control over your branding and customer data 

• Higher profit margins without commission fees 

• Discount, coupon, and combo deal options to drive customer loyalty  

Ready to take your restaurant’s online ordering experience to the next level? 

Don’t let third-party fees eat into your profits. Sign up for FoodChow’s free online ordering system and start seeing the benefits of direct customer relationships and stronger profit margins. Get Your Free Demo Here! and let FoodChow help your restaurant thrive online.