Comparing Online Ordering Benefits for Restaurants

In order to get the best deal, comparing online ordering benefits for restaurants is important, otherwise how do you really know what you are really paying for in terms of features and overall cost. Takeout Rocket has put together this basic comparison, but if you like you can also request our comparison chart to see how we stack up in terms of monthly cost and features against some of our competitors.

Takeout Rocket Online Ordering Made Easy! Logo

Online Ordering Made Easy!

Two Plans $49.99 per month or $29.99 per month
Includes Posts, Link Building and Push Notifications to Help Grow Your Business

Comparing Percentage Based Programs to Flat Rate Programs?   

There are two types of pricing plans software companies charge restaurants for online ordering software. How do you determine which is the better choice? Let’s do a price comparison to examine a few key features. Just because one service costs less than another doesn’t necessarily mean it is worth the price you will be paying, so always check to see what features are included for free to help promote your restaurant.

Price Comparison – Percentage Based vs. Flat Monthly Rate

As you can see from the chart below, flat rate pricing is clearly the better choice for saving money.  If you would like us to give you a free analysis based on what you are currently paying and what we can save you each month with Takeout Rocket, just Contact Us. It doesn’t even matter if your restaurant does $3,000 per month online with average orders of $30 each or $5,000 per month with average orders of $40 each, the savings are still significant.


NOTE
:
Figures below are based on a restaurant with a 40% overall profit margin.

Type of Fee Monthly Fee Monthly Online Orders Restaurant Pays Monthly Restaurant % Amount Paid How Much Profit the Restaurant Keeps; Based on 40% Profit Margin How much is this really costing the Restaurant?
Takeout Rocket Flat Rate

BEST CHOICE

$49.99  per month $4,000 per month with $40 average per order  

$49.99

 

1.20%

 

$1,550 Profit

Here the restaurant is paying out only $49.99 of its $1,600 net profit which is 3.1% of its net profit.
 

Percentage Based

15% of each order $4,000 per month with $40 average per order  

$600.00

 

15.00%

 

$1,000 Profit

Here the restaurant is paying out $600.00 of its $1,600 net profit which is 37.5% of its net profit.
 

Percentage Based

20% of each order $4,000 per month with $40 average per order  

$800.00

 

20.00%

 

$800 Profit

Here the restaurant is paying out $800.00 of its $2,000 net profit which is 50% of its net profit.


Percentage Based Plans – Your Grubby Silent Partner

As the chart above shows, percentage based online ordering plans take a significant amount of a restaurant’s profits making the software company your silent partner, whether you realize it or not. If you have a 40% profit margin and pay a percentage based company like GrubHub or Seamless 20% of each order, they are your 50% silent partner.  They don’t take the risk you take every day running your restaurant. They certainly don’t put in the hours you do. So why pay a software company a percentage of your hard-earned net profits? Percentage based programs from Seamless, GrubHub, Eat24 and Uber Eats do not provide low cost online ordering for restaurants, as the numbers in the chart above clearly prove.

Confusing Percentage Based Plans

Some online ordering companies use complicated pricing plans so the restaurants don’t really know what percentage they are paying from month to month. Some restaurants are paying 10%, some are paying 10% plus $5.00 per order and others pay varying percentages each month ranging from 20% to 30% because they have to pay more to get on the first or second page. TALK ABOUT CONFUSING. If a company makes their pricing plans that complicated, the only one that benefits is the company, not the restaurant. When a restaurant can’t figure out how much they are paying from month-to-month they can’t see how it is really cutting into their profits. There are better alternatives, and Takeout Rocket feels it provides the best price and features when it comes to comparing online ordering benefits for restaurants.

Using a Percentage Based Fee Just for New Business is Risky

If you feel a percentage based online ordering software company can bring you a lot more new customers, you could give them a try, but you really have to track the business they bring in and the amount they are charging. You could be paying anywhere from 15% to 30% of each order without realizing it. Or as with happened with Groupon, according to merchant complaints, you simply get customers looking for a discount who never come back or you get even your regular customers taking advantage of the discount.

If you try a percentage based company, check how many new customers they really bring your restaurant. If you don’t see a significant increase in new customers, and you notice it is mostly your regular customers, then consider dropping that online company altogether, since they are not offering true value. In that case, start switching your regular customers over to an APP like Takeout Rocket that charges a flat monthly rate and you’ll save a lot of money. Your regular customers will understand.

Percentage Based Features vs. Flat Rate Features, Is there Really a Difference?

Each company offers various features, so it really depends on what features you are looking for and how much they are charging. Flat rate monthly plans are always easier to understand than percentage-based fees that vary from month to month and have a complicated pricing structure. Features and pricing vary widely from company to company, but overall, percentage based pricing is more expensive than flat rate pricing.

Takeout Rocket TipRestaurants paying a percentage for online ordering apps should start switching their customers, especially their regular customers, to Takeout Rocket’s app. Restaurants save by paying a low, flat monthly fee. It is very expensive to pay a percentage of each order just to have your regular customers order online.

Takeout Rocket is not only the best GrubHub alternative for restaurants, but we feel we out shine all the competitors in our class. We do this by not only providing fixed priced online ordering, but by also incorporating premium features many of our competitors charge extra for, just to up-sell restaurants to increase fees. Just check out Takeout Rocket’s pricing plans and features   and we think you will agree we offer the best online ordering for restaurants in any side by side comparison.

Comparison Chart

Takeout Rocket’s Online Ordering Comparison Chart for Restaurants provides some valuable information to restaurants looking to compare pricing and features. The comparison chart we prepared took quite a bit of research and we were quite surprised that many of our competitors actually made it difficult to find out what their pricing was, probably because of the complicated structure they use. Some online bloggers and those in the restaurant industry wrote about how percentage based fees vary significantly and could range from 12.5% to 30%.  Many of our competitors think it is okay to have confusing pricing and not clearly state pricing on their website. Clearly, they don’t even attempt to provide low cost online ordering for restaurants, but instead feel they can justify taking most of a restaurant’s profit. Restaurants that don’t check their numbers and look for better alternatives do so at their peril.

Basic Features Should be Free

Some online ordering competitors claimed to charge a low percentage or low, monthly flat rate, but they did not provide basic features. Some either did not provide extra features or charged extra for features like social media posting, marketing, in-store promotional materials, Facebook ordering and push notifications. Features like that should be free for restaurants. We offer a “prix fixe” solution rather than “al a carte” pricing.

Mobile Apps

Some companies that offer online ordering only provided web ordering, without Android or iPhone mobile apps. Others provided smart phone apps, but charged extra for that service. Make sure when you get a quote you look at all the free features and how much you will be charged for extra features. Takeout Rocket offers a full package with bundled features. Do your homework when comparing online ordering benefits for restaurants to make sure it is not just a web based solution that is mobile friendly.

Why is a mobile app so important? Because 4 out of 10 millennials say they interact with their phones more than they do one-on-one with their family or friends.  Time wise, over three-quarters of millennials average more than two hours a day on their smartphones. Marketing campaigns need to factor in millennial smartphone ownership and engagement to be more effective.

Discount Coupons and Automatic Discounts

Another important tool restaurants should make sure they have as part of their online ordering program is the ability to offer customers online discounts. Takeout Rocket’s monthly plans include both a discount coupon feature and automatic discount feature; we don’t charge you extra for that.  When looking at a discount feature, the discounts should be either an automatic discount or a coupon discount. The automatic discount is great for restaurants that want to offer a Tuesday only discount, when the restaurant is slow. The coupon discount is also a great idea because it allows the restaurant to offer it in more specific situations as a marketing and promotion tool.

POS Integration

If you want to have your online ordering system integrated into your POS system, there are a few things to keep in mind. The thing to look at is am I just paying for online ordering or are they giving me features that will actually help me increase my sales? Just because you are paying a flat fee for the integration doesn’t mean you are getting a good value, especially if it is a monthly fee and not a onetime fee. Let’s take a closer look.

First, if you integrate, are you going to lose some features or tie up your POS system during busy times? You may be better off not integrating and using a tablet just to handle your online orders which will provide you with a better way to reduce your online ordering costs.

Second, make sure you get a quote on the integration from your online software company and DO NOT pay them an additional monthly fee, because you will now be paying a monthly fee to them and your POS company; it’s not worth it. POS companies love to layer fees and charge for every little extra feature you may want, when an online ordering company like Takeout Rocket provides true bundled services loaded with features like social media posts on various social media networks, push notifications sent via text messaging to help increase orders and in-store promotional materials. No POS system we know of provides those features.

Third, will your POS company give you couponing and discount programs at no additional cost? Another thing POS companies like to do is not only add on extra monthly fees, but also additional transaction fees. Although we do recommend that restaurants use plastic gift cards, they do come with another set of costs. Takeout Rocket offers online couponing and discount programs at no additional cost as part of our bundled package.

Fourth, if you are looking for free online ordering from your friendly POS company, think again. Most POS companies will try to lock-up restaurants in expensive contracts. Some of them then raise credit card rates and other fees over time knowing it will cost the restaurant thousands of dollars to switch systems. Some POS companies charge $50 or more monthly to give you online ordering, but offer almost none of the basic features that an true online ordering company offers.  POS companies say they offer marketing and social media tools, but guess what, the restaurant has to do all the work. The POS company does nothing for you other than connecting you to your existing social media accounts; big deal.

Takeout Rocket’s Mission – Bundled Features at a Reasonable Price

Takeout Rocket provides restaurants with what it feels is the best value for the money.  When comparing online ordering benefits for restaurants, Takeout Rocket’s bundled features and very competitive fixed cost pricing are what makes us stand out from the percentage based competition and companies that charge extra for features we include for free. We hope you will try us and see the difference.