When it comes to online ordering, independent restaurants often face a critical decision: should they opt for online ordering software or join marketplaces like UberEats and DoorDash? Understanding the key differences between online ordering software vs marketplaces can help you make the best choice for your restaurant’s growth and profitability. In this guide, we’ll explore the pros and cons of both options to help you navigate the landscape and make an informed decision for your business.

Online Ordering Software: Full Control, Customization & Brand Growth

Pros:

1. Brand Ownership: With online ordering software, your restaurant’s online ordering platform is branded with your logo, colors, and personality. This keeps your customers on your website, reinforcing brand loyalty and offering a seamless experience.
2. Lower Fees: Most software providers, like Takeout Button®, offer much lower commission rates compared to marketplaces. This means more revenue stays with your restaurant, which is especially beneficial for small businesses.
3. Customer Data Access: With your own system, you have complete access to customer data, allowing you to personalize offers, understand preferences, and build repeat business.
4. Custom Features: Software providers offer the flexibility to add custom features, from loyalty programs to special promotions, giving you more control over how you engage your customers.

Cons:

1. Marketing Responsibility: Since you own the platform, you’ll need to invest in marketing to drive traffic to your site. Without promotion, the volume of orders may not match the reach of established marketplaces.
2. Initial Setup and Maintenance: Setting up an online ordering system requires upfront investment, and though many providers handle maintenance, occasional updates or adjustments may be needed to keep things running smoothly.

Marketplaces: Quick Exposure, But at a Cost
Pros:

1. Instant Visibility: Marketplaces like DoorDash, UberEats, and GrubHub already have millions of users. Your restaurant can immediately tap into this existing customer base, giving you access to potential new diners who might not know about your business.
2. No Technical Setup: Using a marketplace requires minimal technical work on your part. The platform handles everything from ordering to delivery, making it easy to get started.
3. Promotion Tools: Marketplaces offer paid promotion options to highlight your restaurant, though these come at an additional cost.

Cons:

1. High Commission Fees: Marketplaces charge hefty commissions—often 20-30% per order. This can quickly eat into your profits, especially for independent restaurants with tighter margins.
2. Limited Branding and Customer Data: Customers using these platforms often don’t interact directly with your brand. The marketplace website or app takes center stage, limiting your ability to build a direct relationship with your customers. Additionally, access to customer data is restricted.
3. Increased Competition: Your restaurant will be listed alongside others, often leading to price competition and less brand distinction.

Online ordering software vs marketplaces: Which Option Is Right for You?

When deciding between online ordering software vs marketplaces, it’s essential to assess your restaurant’s needs, budget, and long-term goals.

• If you’re looking for control over your brand, lower fees, and access to customer data, online ordering software is a better fit. It allows you to own your platform and engage directly with your customers.
• If you want immediate exposure and are willing to pay higher commission fees, marketplaces can quickly get you orders from a wide audience. However, the long-term impact on profitability may be a concern.

For many independent restaurants, a hybrid approach works best. You can maintain your own online ordering system to capture loyal customers while using marketplaces to bring in new business.

Ready to Take Control of Your Restaurant’s Online Orders?

If you’re interested in exploring how an online ordering software can help your restaurant grow while keeping your profits intact, check out Takeout Button®. We offer a custom-built platform that aligns with your restaurant’s branding and offers lower fees than traditional marketplaces.

• Test a live demo at https://takeoutbutton.com/live-demo/
• Schedule a free consultation to learn more at https://takeoutbutton.com/sign-up/
• See our existing clients in action at https://eatnowbutton.com

Take control of your online orders and grow your business with confidence!