The True Cost of Commissions: Why Switching to Commission-Free Online Ordering Makes Financial Sense

July 9, 2023 — Cloudwaitress

Introduction

In today’s digital world, restaurants face a significant challenge: online ordering. While the convenience of these services draws in customers, it often comes at a cost that many overlook – commissions. Third-party platforms can charge up to 35% in commissions, significantly benefiting a restaurant’s profits. But there is an alternative that can help preserve your bottom line.

The Hidden Expense: Commission Fees

Let’s take a moment to consider the true impact of these commissions. For a $65 meal, a 35% commission means that up to $22.75 goes straight to the platform. If your restaurant processes hundreds of orders each month, this cost quickly piles up, creating a hefty dent in your profits.

Take a moment to reflect on these expenses. How are they affecting your business? Could these funds be better spent elsewhere, such as improving your menu, enhancing customer service, or expanding your business operations?

The Power of Commission-Free Ordering with CloudWaitress

Transitioning to a commission-free platform like CloudWaitress can unlock considerable savings, boosting your profits. Here’s a breakdown of potential savings with CloudWaitress compared to a third-party platform charging a 35% commission:

Number of Orders per MonthCost on Third-Party PlatformCost on CloudWaitressSavings
100$2,275 ($22.75*100)$0 (free >100 orders/mth)$2,275/mth
200$4,550 ($22.75*200)$39 (fixed cost per month)$4,511/mth
500$11,375 ($22.75*500)$39 (fixed cost per month)$11,336/mth

As evident from the table, the savings with CloudWaitress can be substantial, particularly for small to medium-sized restaurants that heavily impact the high commissions of third-party platforms.

Taking Control of Your Brand Presence Online

Another advantage of transitioning to a direct online ordering system is the ability to take control of your brand presence online. Directing customers who search for your brand online to your site doesn’t just help you avoid third-party commissions; it also significantly strengthens your brand presence online.

When customers search for your brand, they’re directed straight to your site brand’s home, where you control the entire user experience, from when they land to when they check out. CloudWaitress not only enhances customer experience but also helps build brand loyalty. Here is an example of one of our client sites that saves big with CloudWaitress.

Our data indicate that restaurants often see 50-85% of their online orders moving to commission-free direct orders when they take control of their online brand presence.

Conclusion

Managing an online presence in today’s digital era is about more than offering customers a convenient way to order and it’s about controlling your brand, delivering an excellent user experience, and, most importantly, ensuring the financial sustainability of your business.

With CloudWaitress, you can reclaim your profits, strengthen your brand, and make significant strides towards long-term success. It’s not just an online ordering platform but a powerful tool that can revolutionize your business.

Switch on commission-free savings

Reach out to us today to discover how our commission-free online ordering system can drastically improve your restaurant’s financial health. We’re here to help you save money, strengthen your brand, and set your business up for a prosperous future.

FAQs

How do commissions from third-party platforms impact the profitability of my restaurant? 

Third-party platforms can charge hefty commissions of up to 35%. A $65 order translates to a significant $22.75 fee. These fees quickly accumulate over hundreds of orders monthly, considerably reducing your restaurant's profits.      

How does CloudWaitress's commission-free online ordering system save restaurants money? 

CloudWaitress operates a commission-free online ordering platform, providing a significant cost advantage, especially for small to medium-sized restaurants. For up to 100 orders each month, our platform is free. Beyond that, it costs a fixed rate of just $39 per month, potentially saving your restaurant a substantial commission.

What are the benefits of controlling my restaurant's brand presence online through a commission-free online ordering system? 

By directing customers to your website rather than a third-party platform, you can avoid commission fees and strengthen your brand presence online. CloudWaitress lets you control the user experience from start to finish, significantly enhancing customer satisfaction and loyalty. Our data shows that when restaurants take control of their online presence, they often see 50-85% of their online orders coming directly.

How can I learn more about the benefits of CloudWaitress's commission-free online ordering system for my restaurant?

To learn more about our commission-free online ordering system and its potential benefits for your restaurant, please don't hesitate to contact us directly. At CloudWaitress, we're dedicated to helping you save money, strengthen your brand, and pave the way for your restaurant's future success.