Is 19.75% of your sales a fair price to pay?
In an article published in the Financial Times Just Eat is listed as charging restaurants a commission of 13-14 percent, plus tax on every order they process.
In addition to this, restaurant will also pay the payment processing fee on each transaction they process, and the end user will pay an additional 50p service charge on each order made.
So to put this in context. A if you an order is £20 the restaurant will pay upwards of £.3.12 in sales commission and £0.83 in credit card processing fees (We have used the Paypal rate of 3.14 + 20p).
The total cost would be £3.95 which is 19.75% in sales cost.
If that restaurant processed 1000 online orders each month via Just Eat it would therefore cost them a minimum of £3950 for those orders.
The question every restaurant owner needs to ask is whether this amount is a fair price to pay for the increase in online orders.
In the same article the owner of the Fat Pizza chain in Southend, is quoted as saying that the commission Just Eat charges is “fair enough” since “you’re going to be getting customers that wouldn’t be otherwise coming to you”.
But is this true?
I would agree that this is the case for all your new orders and new clients but what about the repeat orders from the Just Eat clients who order from you again and again. Surely these clients are already using your services and know your food, are nearby and would likely order from you directly now that they like what you do.
Is it still worth paying over 19.75% in sales commission for your existing clients?
I think that would be a bit steep.
According to a survey of 405 restaurants commissioned by Preoday two thirds of takeaways using Just Eat think the mobile ordering platform’s fees are unfair. And apparently, 53% ‘are looking to leave’ if they find an alternative.
Fortunately the Fast Food Cart system solves the issue for the majority of restaurants.
We believe that restaurants need to keep using restaurant aggregators like Just Eat so that they can benefit from the new clients that the platform can expose them to. They should also have their own online sales solution for web, android and ios devices. It's vital that your repeat clients buy from you directly and to achieve this you need an online sales solution that works perfectly and which can help you manage the entire sales process to your most valued customers.
Our system means that you direct your existing clients to your Fast Food Cart which is accessible from your own website and app and which your can advertise on every packed of food you send out. You can even pass on the savings you make to your existing clients with our coupon code discount system.
The savings can be enormous and there is nothing to loose with a free 15 day trial period. If you take our "Got Munchies" package we include all your menu data entry too to get you up and running in record time.
Fast Food Cart + Overtone Digital
Overtone Digital are the brains behind the Fast Food Cart Product. All the development, website integration and configuration of your online sales system and apps is managed by their team.
Take our platform for a spin. You will only be charged after 15 days unless you cancel.
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