Third-party Food Delivery Services To Market Your Restaurant

Third-party food delivery services have been popular for years, and the market’s expected to grow by more than 89% over the next six years. 

They’re popular, convenient, and they aren’t going away any time soon. Restaurants also enjoy increased exposure and online orders, but the third-party system isn’t perfect.

When online orders swamp your staff and delivery drivers run late, it can feel exhausting to keep up with. And at the end of the day, you lose a chunk of those profits to expensive commission fees. 

I’ve seen it happen time and time again. Here’s the problem: No one told you that third-party delivery apps aren’t primarily for increasing profits. 

They can be an excellent asset, but you need a strategy to make third-party sales work for you. You need to convert third-party users into direct customers. They'll use your restaurant’s website instead to increase profits and loyalty. 

We’ve helped thousands of restaurants create strategies to save their bottom line from third-party apps, and we can help you do the same. 

Third-party Delivery: The Good, The Bad and The Potential

Third-party apps promise that they’ll make your life easier and grow your business with new customers and larger order sizes. To a certain extent, they’re right. 

Almost everyone has a third-party app in their pockets. That makes it easy for customers to browse restaurants and place an order without having to invest in your own website, delivery drivers, or advertising.

Services like DoorDash have a huge pre-existing customer base to tap into, and you can increase your customer base by partnering with them. 

The apps also feature built-in marketing and promotional options to increase your order sizes and drive profit.

Third-party apps are valuable — no doubt about it. But at the end of the day, those are still DoorDash customers, not your own.

These customers might not remember your restaurant name, location or logo. Instead, they open their third-party app and reorder based on previous orders — an order that costs you a 15%-30% commission fee. 

You can’t reach them yourself, either. The third-party app gets the customer data, including their name, buying habits and contact details. Information that’s vital for restaurant marketing and building loyalty.

Ultimately, that’s not super sustainable.

Uber Eats, Doordash and other third-party apps are popular, and they still have their place in your sales strategy. Instead of trying to increase your profits there, focus on converting their users to use your site. 

I always recommend having your own online ordering platform and mobile app for a few reasons:

• Brand recognition: Customers go to your website, so they’ll remember your name and branding next time. 
• Customer data: Online orders collect customer names, contact information and behaviors (e.g., when they order and what they like). You can use this data to brainstorm effective, personalized restaurant promotions. 
• Profits: Online ordering systems cost money, but you earn more on each order without a third-party commission. You can also promote the most profitable items and popular add-ons like desserts to boost ticket sizes. 
• Customer loyalty: Combine the brand recognition, customer data and marketing to increase customer retention and loyalty for sustainable growth. 

Launching your own online ordering system is step 1 of making third-party apps work for you. Next, you can dive into strategies that convert third-party users. 

In-House vs. Third-party Delivery Platforms: Why You Should Have Both

Third-party apps are super convenient — most are nationally known and customers already have the app installed on their phones. You just can’t buy that kind of brand power. 

But you can absolutely tap into it and use it for your own restaurant growth. 

Driving direct orders to your restaurant is significantly more profitable, and the more customers you can convert on your site and app, the better. 

While your online ordering app will never have millions of downloads like Uber Eats, you don’t need to. Your in-house delivery and online ordering system serves a relatively small geographic location, which has a powerful benefit: You can build relationships with your customers. 

You see them everyday and know what they want. Plus, your direct ordering system collects information to help you see trends and target customers with restaurant marketing. 

Uber Eats doesn’t have the time (or interest) in building that kind of connection, which leaves a wide open opportunity for you to use their apps in your best interest. 

Convert Third-party Customers

While you won’t typically get to talk to third-party app customers directly,  you do package their orders and greet pickup customers at your door. So offline marketing is going to be your best opportunity to convert users to try your restaurant website or app next time. 

• Delivery flyers in to-go orders promote your direct order platforms and highlight benefits like saving on third-party fees. 
• Posters on doors and at the pick-up counter build awareness for in-store and takeout customers. 
• Loyalty program QR codes make it easy to sign-up and engage customers while they’re there instead of waiting for the next time they want to order. 

Use messaging that speaks to customer needs and benefits, and you’ll see more and more direct orders from customers excited to ditch third-party apps.

Increase Your Online Ordering Profits

You already know how expensive third-party app commissions are. Converting a fraction of those users could significantly increase your profits with online orders. And once you reach a few customers, it’s easy to keep them coming back.

‍Marketing features like customer contact databases and automated SMS and email messages mean you’re always a few clicks away. It’s a great way to invite previous guests back and offer them a deal for their loyalty. 

Services like Owner.com also build search-engine optimization into your website. This helps your site and menu appear in local searches ahead of the competition. It’s much easier for new and old visitors to find you this way, and you’re reaching the local customer that matters more than random followers on Instagram. 

Direct ordering platforms are more customizable than third-party apps, so you can adjust your menu, specialities and promotions as you see fit. Promote your highest-profit items and best sellers to boost your average ticket size. 

Another tip we love — use real user reviews and star ratings on your online ordering menu. This builds a little social proof since site users can’t smell your delicious food or hear the grill sizzling from the kitchen. You have to brag about your food and show off the praise you get to entice users to start a cart. 

The ability to reach new and old customers consistently and control your online ordering experience gives you more power to own your online sales. Once you build a relationship with customers and generate a little loyalty, you’ll save yourself and your bottom line from high commission fees.

Mistakes Restaurant Owners Make Using Third-Party Food Delivery

Sometimes, what you think is a great tactic doesn’t perform the way you expect. Third-party apps have several features to help increase your order numbers, but opting into these without a strategy can actually hurt your bottom line. 

If you want to increase sales and profit, avoid these mistakes:

• Negotiating lower commission rates: Some apps will work with you on fees, but owners have reported third-party apps reducing their restaurant’s visibility if they’re partnered at a lower commission rate. 
• Free delivery promo: It seems like a great way to get customers in the digital door, but the fee doesn’t just go away. You’re on the hook for any promotional costs, which means you bank even fewer profits. 
• BOGO deals: Again, this seems like a smart move, but don’t offer BOGO entrees that are expensive to make. Instead, offer a deal on items with higher profit margins, like drinks, so you’re increasing your profits instead of giving food away for free. 

Third-Party Restaurant Delivery Marketing Strategy

At this point, you might wonder if your restaurant should partner with third-party delivery services in the first place.

Simple answer: Yes! 

You just need the right goal and strategy in place, and I know that third-party apps can be extremely useful tools to reach new customers and increase your sales profit. 

You can’t rely on the app alone, though. You need your own zero-commission delivery service in place to convert Uber Eats customers into your customers. Then, you can check out our advice below to work out a strategy for your store. 

1. Mix and Match App Partnerships

There are many delivery apps on the market — you don’t have to stick to one. Each app has its own benefits that vary by location. So, the best way to find your ideal partnership is to try a few and mix and match with what works. 

First, you need to know more about each app’s local performance. You can give them a trial run and chat with other local owners for feedback. You’re looking at:

• Location service: Does this app even service your area? Are there plenty of local delivery drivers, or will your orders be kept waiting? They’re not a fit if they can’t provide great local service.  
• Fees: Compare commission fees to find the best deal for you, but don’t overlook other service fees and customer charges that might affect your sales and profits. Remember, the lowest price isn’t necessarily the best deal if the service is mediocre or worse. 
• Customer base: Do local customers actually use the app, or do they prefer another provider? There’s not much value if they don’t have a strong presence with your local customers. 

Figure out what works for you and partner with the apps that are still somewhat profitable. No matter how many customers you convert, you don’t want to sacrifice all of your earnings to these apps. 

2. Combine Your In-house and Third-party Strategy

Here’s the real key to making money with third parties: promoting your in-house delivery through third-party orders. 

Third-party services just aren’t that profitable. But you actually make money with direct online ordering and delivery services, since they often charge flat-rate fees rather than commissions by orders. 

However, your direct ordering platform has to meet the customers' needs. Otherwise, they’ll go back to the other guys. Here’s a secret — your customers want convenience, value, and connection.

1. Convenience:
Customers expect a quick and easy experience, so a well-designed site and mobile app are essential. If users can’t find your online menu, it’s lacking photos and information or your site is clunky, they’ll bounce and find something else to eat. 

We’ve helped restaurants launch mobile apps that increase online sales by 20% because they’re so much easier to order from. In just a few clicks, customers have already paid and submitted their orders without having to dig through Google. 

I’ve also seen this double our clients’ reorder frequency since customers already have the app on their phones. 

2. Value: 

Delivery isn’t cheap, but passes like Uber One make it much more affordable and keep customers on the hook and ordering from third-party apps instead of you, despite the 20% upcharge with fees. 

First, ordering directly from you is already cheaper —  customers just don’t know that yet. 

It’s your job to clue them in with marketing tactics like website banners and delivery flyers. You can also increase your third-party app costs so the difference is glaringly obvious (and you offset some of those lost profits).

A great loyalty program is your second not-so-secret weapon. Customers earn free items like a high-profit appetizer as an incentive to enroll, then the program features come in. A quality loyalty program gamifies the process so customers are excited to order from you and collect rewards points, earn their next free item and keep an eye on new promotions.

3. Connection: 

Third-party apps regularly remind customers to order again with emails and push notifications. They’re huge platforms with impressive SEO and marketing that keep them in front of your customers. 

The good news: Once you launch your own platform and address the convenience and value gaps, your marketing is practically built in. Not only does your platform collect customer contact information so you can reach them directly, but your key messaging is baked in, too:

• Save money with less fees
• Earn free food with loyalty rewards
• Support local business and order directly from us
• Save time with stored customer information

Many platforms, Owner.com included, offer automated marketing so you don’t have to pile all of this on your own plate. 

After years in the game, we know you’re busy, and we understand what customers want, so we’re happy to take the reins with proven SMS and email campaigns that engage old customers and create new regulars. 

I’ve also seen first-hand how powerful offline marketing can be in converting in-store customers to online orders. Promos like in-store posters and table tents, as well as flyers in to-go orders, are easy to execute and educate customers on all of the great benefits of direct ordering.

Once you reach out and customers hear the news about your shiny, new online ordering platform, we’re sure you’ll start to see significant increases in online orders and mobile app downloads. 

3. Optimize Your Online Menu and Price

You’re not the only Italian restaurant in your city and you’re not the only one with chicken parmigiana on the menu. Just typing out your menu items on your site and Doordash isn’t going to cut it. 

But you can be the only Italian restaurant with a search-optimized menu. So when locals Google “chicken parmigiana in Los Angeles,” you’re the first name that appears. 

There are several ways to optimize your restaurant menu so that you’re easier to find in-app and online. Appetizing descriptions is an easy first step. The more information you can provide, the more keywords a user search might recognize to pull your menu. 

Think about what customers want, phrases they might search and how you can convince them to order from you immediately. Consider highlights like:

• Photos to engage customer senses and convert them to order
• Cuisine styles, like Italian, Mediterranean and Tex-mex, to make searching easier
• Dietary restrictions, including vegetarian/vegan, kosher and gluten-free, to address customer needs
• Restaurant styles, like fast food, fine dining and farm-to-table, to set expectations
• Menus, including kid menus, drinks and desserts, to show variety
• Item details with ingredients, calories and sides for transparency

It’s not just about individual menu items, either. Take advantage of every opportunity to boast about your restaurant specialties and provide more information on menu sections.

Third-party and direct ordering apps have built-in features to promote your top sellers or feature specialty items. They’re excellent ways to stand out from the crowd and instill a little FOMO so users start building their cart ASAP.

Pricing is the other part of the equation. 

We’ve met plenty of owners who increased their third-party service prices to help offset expensive commission costs. It seems like an obvious solution, but customers are price sensitive. 

I’ve found that too large of an increase actually turns customers away and doesn’t do anything to benefit your bottom line. 

You have to put in a little work to find the sweet spot and test different prices and promotions. 

Offer a buy-one-get-one deal on something like churros, which might sell for $7 but cost $1 to make.

So you’re still earning $5 of profit on the giveaway, but your customer feels smart and savvy — like they just stole that $7 churro from you. And they can’t wait to get away with it again. 

You’re looking for the right mix that encourages customers to give you a try — without losing all of your money on big-ticket promotions. 

You simply won’t find a pricing strategy that makes third-parties profitable, but you can attract customers and take the opportunity to “steal” them for yourself. 

4. Upsell Modifiers on Entree Sales

Many customers are looking for a meal and go to your entrees first. They’re likely your most expensive menu item, so they really drive that commission rate. But they’re not as profitable as other items. 

By the time you calculate everything, you might only have a few coins rattling around in your register. 

You have to upsell the profitable sides, drinks and desserts if you want orders that are worth your while. 

Luckily, most apps and online ordering systems make this pretty easy to do. You just have to adjust your settings so entrees suggest an optional prompt, like “select your side,” with a list of top-selling sides. 

I love this option because it’s easy to implement, provides a great customer experience, and this simple suggestion encourages over 20% of entrees to add a modifier. 

Now, that’s how you effectively offset expensive commission costs. 

Remember, even if these side items aren’t the star of the show, they still deserve headliner photos and descriptions, so they’re as irresistible as possible. 

5. Set Smart Delivery Hours To Prioritize Direct Orders

We all relate to the stress of peak lunch and dinner hours. Your kitchen is swimming in new tickets, wait staff are turning tables as quickly as possible and customers are still rolling right in. 

It’s a pretty great problem to have unless your staff is bogged down with third-party app orders and neglecting your in-store customers. 

Your staff can’t possibly take in-house orders as quickly as the apps can take delivery orders. It’s a real bummer when everyone powers through the lunch rush together, and then all of the profits and tips go to the delivery app. 

Work smarter and set specific hours for your kitchen to accept third-party delivery orders. These settings are built into the app, so it’s easy to update. And the benefits are huge: 

• Your staff is less stressed
• Your existing customers are happier
• You make more money

But what about the customers trying to order through Doordash? Ideally, they open their mobile browser, search your restaurant and place a direct order, instead. It’s a win-win all around.

6. Advertise On Third-Party Apps

There are several ways to promote your restaurant and particular menu items through third-party apps, but don’t start trying suggested promos without a smart strategy. These can cost you big if you’re not careful. 

Profit isn’t our primary goal, but we don’t want to forfeit it entirely, either. 

Here are some of our favorite ways we’ve attracted new customers with each built-in promotion:

• Sponsored posts increase your in-app visibility, but don’t bid more than 10% of your average order size to guarantee you don’t lose money.
• Paid Promotions boost profits by enticing customers with a great deal. Identify your most popular items with <10% food costs, then test BOGO promotions to get more orders. 
• Free delivery increases online ordering volume, but it’s tied to the app with DashPass, Uber One and other memberships. They’re not easy to convert, so avoid free delivery offers altogether.

Best Restaurant Delivery Apps for Your Restaurant

If you haven’t already launched a third-party app partnership, you might be wondering where to start. We’re happy to share our knowledge and experiences with the big three in the U.S. — Uber Eats, Doordash and Grubhub — but make sure you do your own research. 

App popularity and success vary by location, so chat with other local owners and customers. 

UberEats to Start Online Ordering

The Uber company is extremely well-known, and Uber Eats food delivery is just a part of the pie. 

Most of the big three apps have similar price structures and services, but we love Uber Eats’ large library of merchant resources, including illustrated guides, quick-start support and video tutorials. 

If you’re new to online ordering entirely, Uber Eats might be the easiest to get started with. But they all have a pretty solid backend experience and customer support. 

Both Uber Eats and DoorDash have an impressive reach across U.S. cities, so either will serve you well if you’re in a major metro area. 

DoorDash for the Widest Reach

DoorDash is one of the most widely available apps, and it’s super popular with users. Reaching 94% of the U.S. population, this is probably your best bet for connecting with the most locals (depending on your location).

DoorDash commission rates and services are similar to Uber Eats, so which you choose mostly comes down to local popularity.

Grubhub for Large U.S. Cities

Grubhub isn’t as widespread as the other apps, so the service might not be as great if you’re in a smaller metro area like Helena, Montana. But it’s a super popular app for major U.S. cities. 

While it only holds 8% of the total market share, 37% of New York City deliveries were Grubhub orders in 2021. I know we’ve said it a lot, but knowing your location’s market is vital for exactly this reason. 

Grubhub also prices its services a little differently than the other two. Instead of a commission rate, it charges separate marketing and delivery fees. While these rates are lower at a glance, the savings are not significant to boost your profits. 

Reach New Customers With Third-party Delivery, but Don’t Rely on It for Sales

We’ve worked with third-party food delivery services for years and learned a thing or two from experience. Many restaurants rely on them for online ordering, which is mistake number 1. 

The best way to use third-party services to support your sales is for restaurant marketing. 

Attract new customers with the third-party marketplace, provide great service and slip a flyer in their takeout bag so they know how cost-effective and convenient ordering through your website is next time. Eventually, your direct customers will grow, and you’ll build loyalty to sustain actual profits with online sales.

Need help setting up your online ordering system? Get a free demo and see how a branded website, mobile app and direct ordering from Owner.com can increase your sales and save thousands in fees.