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