Online ordering has transformed from a convenience to an expectation. Customers now assume they can order food from their phones, and restaurants without this capability lose business to those who offer it. The question is not whether to offer online ordering, but how to implement it effectively while protecting your margins from excessive third-party fees.
The Online Ordering Landscape
Restaurants have several options for accepting online orders, each with different trade-offs in terms of cost, control, and convenience.
Third-Party Delivery Platforms
Services like DoorDash, Uber Eats, and Grubhub provide ordering platforms, delivery logistics, and customer acquisition. They charge 15 to 30 percent commission per order, sometimes more. For a $30 order, the platform might take $4.50 to $9.00.
These platforms provide value through exposure to their user bases and handling delivery logistics. However, the commission structure makes them expensive for high-volume restaurants, and they control the customer relationship. Customers often have more loyalty to the platform than to individual restaurants.
Direct Ordering Through Your Website
Direct ordering systems let customers order from your website, avoiding third-party commissions. You pay a much lower fee, typically just payment processing costs of 2-3 percent plus a small platform fee. For that same $30 order, you might pay $0.90 to $1.50 instead of $4.50 to $9.00.
The challenge is driving customers to order directly rather than through familiar third-party apps. This requires marketing your direct ordering option and potentially offering incentives.
Hybrid Approach
Many restaurants use both approaches strategically. Third-party platforms provide discovery and serve customers who insist on using their preferred apps. Direct ordering captures customers who know the restaurant and can be directed to the lower-cost channel. Over time, restaurants work to shift volume toward direct orders.
Choosing an Online Ordering Platform
Several platforms help restaurants add online ordering to their websites without building custom systems.
Square Online
Square Online integrates with Square payment processing and POS systems. It offers free and paid tiers, with the free version charging only payment processing fees. The paid tiers add features like custom domains and reduced transaction fees. It works well for restaurants already using Square for payments.
Toast Online Ordering
Toast provides restaurant-specific POS and ordering systems. Their online ordering integrates directly with Toast POS, ensuring orders flow into kitchen workflows. Pricing varies by package. It is a strong choice for restaurants committed to the Toast ecosystem.
ChowNow
ChowNow focuses specifically on commission-free ordering for restaurants. It charges flat monthly fees rather than per-order commissions, making costs predictable. It also provides marketing tools to help drive customers to direct ordering.
Bentobox
Bentobox combines website building with online ordering and other restaurant tools. It offers a complete solution for restaurants that need both a website and ordering system together.
Integration Considerations
When choosing a platform, consider how it integrates with your existing operations:
- Does it integrate with your POS system?
- How do orders reach your kitchen? (Tablet, printer, POS integration)
- Can it sync with your inventory management?
- Does it support your payment processor?
- What is the customer experience on mobile devices?
Seamless integration reduces friction for both customers and staff. Clunky systems create errors and slow down service.
Setting Up Effective Online Ordering
Implementation details significantly affect whether online ordering succeeds for your restaurant.
Menu Configuration
Your online menu should accurately reflect what you can prepare and sell through the ordering channel. Consider whether all dine-in items work for takeout and delivery. Some dishes do not travel well. You may want a separate takeout menu with modified selections.
Organize the menu logically. Group items by category. Include clear descriptions and accurate prices. Add modifiers for customization options. Note dietary information and allergens. Mark items that are temporarily unavailable rather than removing them entirely.
Accurate Timing
Provide realistic time estimates for order completion. Underestimating creates unhappy customers who arrive to find their order not ready. Overestimating may lose customers to faster options. Monitor actual preparation times and adjust estimates accordingly.
Consider how order volume affects timing. During peak periods, preparation time increases. Some systems allow dynamic timing adjustments based on current order volume.
Pickup Process
Design a smooth pickup experience. Designate a clear pickup location. Consider a dedicated pickup area separate from regular service. Provide instructions in order confirmations so customers know exactly where to go and what to do.
Some restaurants implement curbside pickup, letting customers stay in their vehicles while staff brings orders out. This convenience can differentiate your service, especially for families with children or customers with mobility limitations.
Delivery Options
If you offer delivery, decide whether to use your own drivers or third-party delivery services. Own drivers provide more control over the experience but require managing staff, vehicles, and logistics. Third-party delivery services handle logistics but add cost and reduce control.
Hybrid models are possible: direct orders delivered by third-party services. This captures the commission savings of direct ordering while outsourcing delivery logistics.
Driving Direct Orders
Having a direct ordering system accomplishes nothing if customers continue using third-party apps. Actively market your direct ordering option.
Website Prominence
Make online ordering impossible to miss on your website. Place ordering buttons in the header visible on every page. Feature ordering prominently on the homepage. Consider a sticky order button on mobile devices that remains visible as users scroll.
In-Store Marketing
Promote direct ordering to customers dining in or picking up. Table tents, signage, and receipt messages can all drive future direct orders. Train staff to mention it during interactions.
Incentives for Direct Orders
Give customers reasons to order directly. This might be a discount on first direct orders, loyalty points that only accrue through direct ordering, or exclusive menu items available only when ordering direct. The savings from avoided commissions fund these incentives while still improving margins.
Email and SMS Marketing
Collect customer contact information through direct orders and use it to encourage repeat business. Automated messages can remind customers to reorder favorites, announce specials, or provide exclusive offers for direct ordering customers.
Managing Order Volume
Online ordering can significantly increase order volume. Ensure your operations can handle it.
Kitchen Capacity
Evaluate whether your kitchen can handle additional online orders during peak periods. You may need to limit order volume during busy times, either through pausing ordering or extending time estimates to manage capacity.
Staff Training
Staff need to understand how online orders flow into their workflow. Train them on the ordering system, how to handle modifications and special requests, and how to manage the pickup process smoothly.
Quality Control
Takeout and delivery orders represent your restaurant even though customers eat them elsewhere. Maintain the same quality standards for these orders as for dine-in. Package food appropriately to maintain temperature and presentation during transport.
Measuring Success
Track metrics to evaluate and improve your online ordering performance.
Key Metrics
- Total online order volume and revenue
- Direct versus third-party order split
- Average order value
- Order accuracy rate
- Customer feedback and ratings
- Repeat customer rate
Optimization Over Time
Use data to improve continuously. If certain items are frequently returned or complained about, they may not travel well and should be modified or removed from the online menu. If timing complaints are common, adjust estimates. If customers are not ordering directly, increase marketing of that channel.
Online ordering is no longer optional for restaurants with any takeout or delivery business. Implementing it effectively, with attention to the customer experience and cost management, creates a significant competitive advantage. The investment in getting this right pays dividends with every order.