What is third-party ordering?
Third-party ordering is when a customer uses an app on their phone or goes to a website to place an order for food for take-out or delivery. Third-party ordering companies are the link between the restaurant/foodservice provider and the customer. These companies list your menu in a directory with other local restaurants, process the order, and take care of delivery. The third-party ordering company collects the payment, keeps a percentage for fees, and then the rest is paid to to you, the store owner.
Third-party ordering is a WIN-WIN in that it:
- ATTRACTS new customers (these are people that wouldn't normally purchase from your store).
- LEVELS UP the ticket total: third-party ordering customers purchase significantly more than the customers that just walk up to your counter. The average ticket ring of the case study below is $21.47.
Here's an example: John Doe has been working at home all week while his kids are doing virtual-learning. He's busy bouncing from zoom meeting to zoom meeting so instead of figuring out lunch, he decides to order some food to get delivered to his doorstep. He pulls out his phone, loads his Uber Eats app and starts browsing to figure out what to eat. Mixed with popular chain restaurants like Applebees, Popeyes, and McDonalds, he finds Champs Chicken. He places his order, completes payment, and a short amount of time later, food is delivered to his door.
Check out how it works when customers place online orders on Google:
How does it work for the STORE?
If a store follows PFSbrands' recommendations for how to implement third-party ordering successfully, this is the flow:
In this format, a store uses Chowly to consolidate all of their orders from the third-party companies. Instead of tracking multiple third-party ordering platforms and tablets, all of your third-party orders come through one system.
Even with Chowly, however, you still have to have agreements, accounts, and menus with all of the third-party companies that you want to use.
Is it really worth the work? Can it really increase my revenue?
Yes! COVID-19 has accelerated the adoption of third-party ordering by consumers, and it is a trend that is not going away. According to a Deloitte research study, before COVID-19, 38% of the U.S. population ordered delivery at least once a month and 45% ordered takeout at least once a month. During COVID-19, those numbers rose to 52% for delivery orders, and 68% for takeout orders.
One Champs Chicken located in a grocery store in Missouri decided to get in the game with third-party ordering in the fall of 2020. They signed on with four third-party companies that were servicing their area and used Chowly to process all of the orders. For November and December they fulfilled $2,512.34 in third-party ordering sales between four different platforms:
DoorDash - 36 orders totaling $868.88
GrubHub - 60 orders totaling $1290.06
Postmates - 9 orders totaling $139.35
Ubereats - 12 orders totaling $214.05
Average ticket ring: $21.47
Which third-party ordering companies has PFSbrands partnered with to get lower national rates for program partners and franchisees?
Chowly (the aggregator that handles all of the orders from other companies)
GrubHub- Sign on before January 31st and get your first 30-days commission free!
Zuppler (Google ordering)
What if something goes wrong or isn't working and I need help?
Chowly has a support case form where you can quickly submit a request for help. You can also call (888) 628-0823 and press 2 to be connected to a team member.
How do I get started?
1. Review the third-party ordering companies that are available in your market. Reach out to your Business Advisor if you are unsure which third-party companies are available for your location.
2. Sign up for Chowly.
3. Sign up for the third-party ordering companies you want to use.
4. Create your delivery menus and set pricing.
5. Promote the service. The third-party ordering companies will provide a variety of marketing resources to help you let people in your area know that you are open for delivery and take-out orders!
The process can be intimidating, but our support is YOUR success. Please reach out to your Business Advisor or our Retail Advertising Specialists for help getting on-boarded with third-party ordering.
MDF@PFSbrands.com, (573) 896 - 0300