16/07/2020
Are food portals bringing local restaurants on the edge of bankruptcy?
the answer will shock you.
Partnering up with third party food portals is like giving your business the kiss of death. Their commission fees gross just like cancer over time, until bankruptcy becomes unavoidable.
Third-party food portals thrive, by pocketing up to 20-30% worth of commission fees form every restaurant order, while restaurants barely make ends meet.
The problem is even more dire, since restaurants don't even have the luxury to slightly increase their prices. That happens because delivery portals want to have competitive prices, so they don’t allow restaurants to increase their prices to get a thin profit margin.
Why do restaurants sign up to deliver with third party food portals?
Third-party food portals promise restaurants a so-called partnership that will get them:
- online exposure
- new clients
- and ultimately more online orders
For both new and established restaurants, this is the ideal goal. However, from the moment the restaurant signs up, it becomes nothing more than a food supplier to these food portals.
Support local business and order directly to them.