This article from Preoday, a London-based provider of digital ordering technology, discusses their recent research on restaurants’ and consumers’ perceptions of third-party delivery services.
Research from Preoday, reveals findings on U.K. consumer attitudes to third-party mobile and online ordering providers which charge commission fees; 70% say they’d rather order direct, preferring that their money goes straight to the restaurant, not a third party. Only 15% said they didn’t really care how much money the restaurant received from their order.
The response came after consumers were informed that 68% of food and drink professionals, questioned by Preoday, pay commission fees to their digital ordering technology supplier. Prior to this information, 74% had already said that they order food online or through a mobile app: 30% used aggregators while 23% went straight to the restaurant to order; 21% said they look at both options and decided at the time. The shift in opinion is apparent; when given the full story, consumers want restaurants to take their money, not technology suppliers. They want to support their favorite restaurant brands.
How much is too much?
Of the professionals whose restaurant businesses give customers the opportunity to place food orders online or via a mobile app (be that an aggregator or their own branded platform), 25% are paying more than 20% commission per order, only 16% pay less than 10%.
Questioned on whether they thought the commission fees they were being charged were fair; only 12% of operators said that they were, 82% said they were too high and 33% went so far as to say that the fees weren’t worth the result.
Investigating this point, Preoday found 38% of the questioned professionals would rather their business had its own ordering website/app than use a third-party provider; only 14% thought that it’s better for a brand to have a third party app than use its own order or delivery app. Worryingly, 38% claimed that that once a business has started using a third-party ordering technology, it’s difficult to break away.
Preoday’s research further explored the access to customer data that digital ordering technology providers give clients. It found that, of those food service businesses offering a digital ordering service - whether own-branded, or through an aggregator, 44% aren’t given access. Considering the important role that data plays in understanding customers, enhancing marketing and giving a personalised service, it shouldn’t be surprising that 43% of professionals said they believe third-party apps - many of which withhold data - interfere with the direct relationship between a restaurant/bar/pub and its customers.
Preoday’s report reflects the anonymised responses of 476 consumers and 205 food and drink service professionals, based in the UK, during March - April 2018.
A complete report with all data is available; email [email protected] for a copy.