Due to the rising trend of online food ordering, several enterprises have launched various solutions that focus on helping F&B businesses grow in the online ordering scene. The solutions range from marketplaces to restaurant ordering systems. With so many platforms to choose from, it may be hard for restaurant owners and aspiring restaurateurs to make a decision.
In general, marketplaces are platforms that feature F&B brands, and customers go on the marketplace provider’s website to place orders. Online ordering systems provide F&B brands your very own branded shopping cart which customers go onto directly to order from.
Let’s have a look at the fundamental differences between marketplaces (Foodpanda, GrubHub, Deliveroo, etc.) and online ordering systems (Oddle) to help you make a more informed decision when selecting the right platform for your restaurant.
Marketplaces showcase a myriad of F&B brands on their platform, let customers order food online and help the F&B brands do delivery. While this is generally the easiest route to going online, it's also the most expensive. For every order transacted through the online ordering marketplace, a percentage of the total price is charged as the transaction fee.
But here’s the rub.
The more orders your restaurant receives, the more money you have to pay the provider. In the long run, it would be highly unprofitable for your restaurant to only use online food ordering marketplaces. Though marketplaces are useful for marketing to new customers, the high commission cut puts your restaurant in a disadvantageous position when the person who places an order is a returning customer. Simply put, it is not logical to pay a fee to the marketplace provider when it is a repeat customer. As compared to marketplaces, having an online ordering system helps you cut costs. Most online ordering systems do not charge transaction fees. Without these per-order cuts, you don’t have to keep paying for repeat customers, hence allowing for more sustainable growth for your restaurant in the long run. You are able to process as many orders as you’d like without having to worry about paying commissions to your provider.
Here’s another way to think about it: When you rent a brick and mortar space, you pay a rental fee every month instead of a percentage per transaction made in that space.
Marketplaces often engage in aggressive marketing to attract customers to its site where various brands are listed. Users are exposed to different brands available and may subsequently place their orders directly from their website. Using a marketplace, your F&B brand name and menu are listed along with thousands of other brands.
But beware: With no customisability available on marketplaces, there is a possibility of your customers dissociating your products from your restaurant and you losing interest their attention to another brand.
In contrast, an online ordering system like Oddle gives you your very own website and allows you to customise your shopping cart to suit your brand image and theme. Showcase multiple photos of your food items, display your brand logo, set the colours of your shopping cart that are consistent with your brand. This reinforces your brand image in their mind and reduces the possibility of them getting distracted by your competitors on third-party online ordering marketplaces. In the long run, a customisable online ordering system tailored to your brand does not dilute your brand identity.
Image from Jinjja Chicken’s shopping cart.
For marketplaces, orders are processed by the service provider and subsequently communicated to the restaurant. Having a third party involved in the transaction means you don’t have full control of the online ordering system and the orders that come in. The total time taken from the point where the customer places the order to the time they receive the food may also be susceptible to delays are the communication process goes through multiple levels.
On the other hand, an online ordering system helps you regain control over the orders that come in. And not just the orders, this comprehensive online ordering system gives you a customisable frontend menu aesthetics, consolidation of phone, email, and online orders, and analytics for your sales and customer data. We believe that customer management and interaction should be in your hands, and not service providers who wouldn’t know your customers as well as you do.
The best part? Online ordering systems boost your sales and marketing. Having access to customer data pool allows you to remarket to them efficiently by emailing them new menu items or promotions and convert them to loyal returning customers.
Oddle’s Analytics function
Marketplaces’ delivery zones are often restricted to a fixed radius (e.g. 3km, 5km) around your restaurant’s location. Furthermore, your customers would only be able to order at most a few days in advance. Let’s face it, that would not be suitable event orders such as birthday parties, corporate lunches and more.
On the other hand, online ordering systems give you the ability to cater to a broad customer base. With the right online ordering system, you can set your delivery zones freely and reach customers who reside at the other end of the island - you are no longer confined to a neighbourhood-centric audience and foot traffic. Moreover, online ordering systems let your customers place advance orders.
So what’s the bottom line? The profitability of your business increases.
Oddle: The All-in-One, Affordable Solution
Now that we have shown you the main differences between an online ordering system and marketplaces, you have all the information you need to choose the right ordering platform for your store. One last thing, we’ve got some good news for you. For as little as US$4 a day, you can enjoy all the benefits with Oddle’s online ordering system. Get in touch with us for a free demo today!
Image from GIPHY