From Exposure to Ownership: How Restaurants Can Reclaim Their Margins from Delivery Aggregators

In the digital age, food delivery platforms like Uber Eats, DoorDash, and Grubhub have become indispensable tools for restaurants seeking to expand their reach. These aggregators offer unparalleled exposure, connecting eateries to a vast customer base with minimal upfront investment. For many establishments, especially during challenging times, partnering with these platforms has been a lifeline, introducing their cuisine to new audiences and driving sales.

However, this convenience comes at a significant cost. Aggregators typically charge restaurants commissions ranging from 15% to 30% per order. 

Curious what that means for your own business? Try our Delivery Platform Savings Calculator to see how much you could be saving. 

For businesses operating on thin margins, these fees can erode profits, making it difficult to sustain operations. Beyond the financial implications, relying heavily on third-party platforms means ceding control over customer data and the overall dining experience.

The Hidden Costs of Aggregators

While the immediate benefits of increased visibility and order volume are evident, the long-term ramifications of depending solely on delivery platforms are concerning:

• Profit Margins Shrink: High commission fees reduce the revenue retained from each order, limiting funds available for reinvestment and growth .
• Loss of Customer Relationship: Aggregators often withhold customer data, preventing restaurants from building direct relationships and loyalty programs.
• Brand Dilution: When customers order through third-party apps, their primary association is with the platform, not the restaurant, weakening brand identity.

Let’s take a real-world example. A restaurant in the U.S. doing 400 delivery orders a month at an average of $36 per order, not an unusual figure for a busy independent or small chain, would generate $14,400 in monthly sales. If they’re using Uber Eats Lite at 15%, that’s $2,160 in platform fees every single month.

Compare that to switching to a direct ordering system like TypeMenu, where the monthly cost might be as low as $686 all-in including third party payment processing fees. That’s a $1,474 monthly saving — or $17,688 per year back in the restaurant’s pocket.

Charting a New Course: Direct Engagement

Recognising these challenges, many restaurateurs are exploring strategies to transition customers from third-party platforms to direct ordering channels. One effective approach involves leveraging the initial exposure provided by aggregators to build a loyal customer base that orders directly.

Strategies for Transitioning to Direct Orders

1. Incentivise Direct Orders: Offer exclusive deals or discounts for customers who order directly through the restaurant's website or app. This not only provides value to the customer but also increases the restaurant's profit per order.
2. Implement Loyalty Programs: Reward repeat customers with points, discounts, or freebies. Loyalty programs can encourage customers to bypass third-party platforms in favour of direct ordering.
3. Utilise Direct Mail Marketing: Send personalised flyers or postcards to customers, highlighting the benefits of ordering directly, such as special promotions or faster service .
4. Enhance Online Presence: Invest in a user-friendly website and mobile app that make the ordering process seamless. Ensure that the online platform reflects the restaurant's brand and offers the same, if not better, convenience than third-party apps.

Embracing Technology for Direct Engagement

Restaurants now have more options than ever to build a direct relationship with their customers. Some POS vendors and payment providers offer online ordering as part of their packages, but these tools are often limited in flexibility, branding, or access to customer data.

TypeMenu takes a different approach. It’s built specifically for independent food businesses that want full control over their online presence. You get a fully branded storefront, commission-free ordering, and direct access to customer insights — all in one place.

Whether you're transitioning from aggregators or launching your first online offering, the most important step is owning the entire customer experience from start to finish. TypeMenu gives you the tools to do just that.

Conclusion

While delivery aggregators offer undeniable advantages in terms of reach and convenience, the associated costs and loss of control present significant challenges. By proactively engaging customers and investing in direct ordering channels, restaurants can reclaim their margins, strengthen their brand, and build lasting relationships with their patrons. The journey from exposure to ownership is not without its hurdles, but with strategic planning and the right tools, it's a path that leads to sustainable success.

Start by running your numbers — use our Delivery Platform Savings Calculator and see how much more your restaurant could be keeping every single month.