Reasons Why Restaurants Are Leaving Third-Party Aggregators

With more and more people looking for convenient eating options, the demand for food delivery rises. The increasing needs of restaurants have led them to use third-party aggregator services. Across the globe, the revenue generated by online food delivery has reached around 134 Euro Billion Dollars in 2021, which is an 11% increase from the previous year. Nowadays, customers getting to know about classified offers has led to increasing customer expectations.  Thus, restaurateurs have to think about 30% of their earning profit spent over third-party aggregators.

How Does The Food Aggregator Model Work?

No two platforms work in the same functionality, and thus, no third-party aggregator platforms work in the same manner, but these platforms function with the single goal to increase the number of customers to place orders over the restaurant. So how do these platforms achieve it?

Food aggregators allow multi-restaurants to make use of the platform. Once they reach a high number of restaurants, third-party aggregators launch the app to the public. Food delivery aggregators offer great deals, free delivery, and discounts which triggers the customer interest to place orders repeatedly. The customer can happily avail of these unlimited benefits from the third-party aggregators, but it heavily affects the revenue generation of the restaurant end.

Reasons Why Restaurants Are Moving Away From Food Aggregator Platforms 

Restaurateurs face unlimited problems due to the third-party aggregator apps usage, which urges the restaurant owners to choose the in-house food ordering app. Check out the major reasons why restaurants move away from third-party food delivery providers.

High Commission Charges 

Many restaurants hook up with third-party aggregator service providers to promote their restaurants among the customers and increase sales through the platform. However, restaurants spend 10 to 12% of their revenue on commissions and third-party service providers. At the same time, customers also spend high charges for the food delivery whereby third-party aggregators take 30% of their bill amount for every order.

Changes In Menu Not Reflected In The Third-Party App

Restaurants often change menu, price, offers, and discounts, but these changes are not reflected instantly over the third-party aggregator online menus. Whenever a restaurant needs to make a change in the menu it has to place a call to the third-party delivery service provider, which is a major drawback of the system.

No Order Processing On Restaurant Closed Days

At certain times customers notice the delay in the food delivery and then try to contact the restaurant through the third-party aggregator platforms. But the customer will not get any response from the restaurant. Now the customer approaches the third-party app providers, and these people will respond as such they will resolve the issue. 

After one hour, the customer cancels the order and receives the refund of the order amount, which is a great loss to the restaurant due to the non-coordinated activities of the third-party aggregator service providers. In a few cases, restaurants may announce offers for holidays in advance, but the customers receive the updated offer information late unless the restaurants update the information along with the third-party food delivery service providers.

Lack Of Restaurant Control

The wrong order processing in the third-party portals creates major problems on the customer side, and they blame the restaurant for the flaws that occur in the food order or delivery process. For example, customers might order their favorite food from a restaurant, but the item availability time might exceed the time limit. 

At the same time, the third-party aggregator platform accepts the customer order. Thus restaurants lack control over the menu, ordering experience, and delivery process, which results in dissatisfied customers damaging the reputation and brand name of the restaurant.

Poor Customer Relationship And Loyalty

When the restaurants utilize third-party aggregators service, they don’t get direct access to the customer data, which affects the customer relationship with the restaurant. A survey reports that improved customer relationships increase loyal customers up to 5%, which increases sales up to 75%. 

Third-party food ordering service providers gather data of your restaurant, and they use this data to promote their brand instead of promoting the restaurants. Thus, when a restaurant depends on the service of third-party service providers, it directly affects the future marketing efforts and loyalty of the customer.

Alternate Form Third-Party Aggregators For Restaurant

Thus all these reasons push the restaurant owners to move away from the third-party aggregator’s service. A branded and customized online ordering system with website ordering and mobile app ordering will help you achieve the sales targets as it streamlines the entire restaurant process activities. 

Summing up

Every day more and more third-party solutions offer service to the customer and the restaurants, but it’s time to take serious note of the problems raised in third-party apps. The majority of the restaurants have turned towards the in-house online ordering platform that helps them understand the customers, purchase patterns, and promote their business to the next level. Now the restaurants can gain 100% revenue without the commission charges of third-party aggregator apps.