Third-Party Delivery vs. In-House Ordering: Which Option is Right for Your Restaurant?

Third-party delivery vs. in-house ordering presents a crucial choice for independent restaurants navigating the evolving landscape of food service. Restaurants can either rely on third-party delivery platforms or develop their own ordering system with self-delivery. Each approach offers unique advantages, but the right decision can directly impact profitability, customer experience, and brand loyalty. In this article, we’ll explore the benefits and drawbacks of both options and highlight how Takeout Button® provides a customized solution to support in-house ordering and self-delivery for independent restaurants.

Benefits of Third-Party Delivery Services

Third-party delivery services like UberEats, DoorDash, and Grubhub provide access to a vast customer base and immediate logistics support. Here are some of the advantages of using these platforms:

1. Increased Visibility: Partnering with large platforms can put your restaurant in front of millions of users, helping drive new customer orders without additional advertising.
2. Convenience: Third-party services handle all delivery logistics, allowing restaurants to focus on food preparation rather than managing drivers and routes.
3. Lower Initial Investment: These services don’t require an upfront investment in a delivery fleet or delivery management software.

However, while third-party delivery offers an easy entry point, these benefits come with limitations that can affect your restaurant’s bottom line.

Drawbacks of Third-Party Delivery

Despite the convenience, third-party platforms come with some challenges:

1. High Commission Fees: Restaurants typically pay 15-30% in commission fees per order, which can significantly cut into profits, especially for small independent businesses.
2. Limited Brand Control: Third-party platforms often use their own subdomains, which means customers might not even visit your website. This can dilute your brand and make it difficult to foster direct relationships with customers.
3. Customer Data Access: Unlike in-house solutions, these platforms often restrict access to customer data, making it hard for you to engage with customers directly or build a loyalty program.
4. Reduced Flexibility: To stand out on these apps, restaurants sometimes need to offer special deals, which means absorbing additional costs to remain competitive.

Pros of an In-House Online Ordering System with Self-Delivery

For restaurants looking to take greater control over their delivery operations, an in-house online ordering system with self-delivery can be a powerful choice. Here’s why:

1. Lower Costs: By eliminating third-party commission fees, restaurants can retain more revenue per order. This is especially impactful on large catering or group orders.
2. Direct Customer Relationships: An in-house system keeps customers on your restaurant’s website, fostering a stronger connection with your brand and giving you control over the entire ordering experience.
3. Data Ownership: With an in-house ordering system, you have full access to customer data, allowing you to build personalized marketing campaigns, loyalty programs, and exclusive offers.
4. Customizable Delivery Options: Self-delivery enables restaurants to define delivery zones, set custom fees, and offer flexible options to suit local customer preferences.

Challenges of In-House Ordering and Self-Delivery

While beneficial, in-house ordering and self-delivery also come with some considerations:

1. Delivery Logistics: Managing your own delivery fleet requires staff, vehicle maintenance, and software to optimize routes, which can be challenging for smaller restaurants.
2. Limited exposure: Restaurants may have limited exposure to new customers without the marketing power of third-party online delivery services.
3. Higher Upfront Costs: Building an online ordering system and establishing a delivery fleet may require a larger upfront investment.
4. Time-Intensive: Self-delivery involves more hands-on management, from coordinating drivers to handling potential delivery issues, which may take focus away from kitchen operations.

How Takeout Button® Supports In-House Ordering and Self-Delivery

Takeout Button® understands the unique needs of independent restaurants and offers a customizable solution that combines the best of in-house ordering with integrated self-delivery options. Through Takeout Button®’s platform, restaurants can:

• Use On-Demand Drivers: Takeout Button® integrates with third-party delivery platforms to provide on-demand drivers, so you can manage delivery on your terms without the cost of maintaining a dedicated fleet.
• Seamlessly Manage Orders: Our user-friendly system lets you accept orders directly from your website, keeping traffic and brand engagement focused on your restaurant’s site.
• Customize the Customer Experience: With Takeout Button®, each restaurant’s online ordering system is designed to reflect its unique brand, including the restaurant’s subdomain, and integrates smoothly with existing websites.
• Access Customer Data: Unlike third-party apps, Takeout Button® ensures that you own your customer data, allowing you to reach out directly with promotions, loyalty programs, or updates.

Making the Right Choice for Your Restaurant

Deciding between third-party delivery and an in-house system with self-delivery depends on your restaurant’s specific needs, resources, and goals. While third-party platforms offer ease of access, they come with commission fees and limited branding. An in-house ordering system supported by Takeout Button® combines brand control, lower costs, and customized delivery options, helping independent restaurants build direct relationships with their customers and increase profitability.

To learn more about how Takeout Button® can support your restaurant with a tailored online ordering and self-delivery solution, check out our live demo, or schedule a free consultation. Explore how other independent restaurants are thriving with Takeout Button® by visiting our existing clients.