restaurants-lose-money-ubereats-doordash

How Restaurants Lose Money With UberEats & Doordash?

Many restaurants actually believe that they are making huge gains with services like Ubereats/Doordash. However, it is not always the case. But in reality, only some of the restaurants can make a decent profit with these services and many others might face losses.  To come to the final point, Yes, Restaurants are losing money with Uber eats/DoorDash. This article details how.

However, regardless of any kind of restaurant, there is a way they can make more money by moving on from Ubereats and Doordash to something familiar and feature-rich system that puts restaurants first. If you are a restaurant owner, then this article will definitely help you.

Let’s also discuss that way!

How does UberEats/DoorDash work?

With technology getting better day by day, people want more and more comfort. Uber eats/ DoorDash made it very easy for people to get fresh and tasty food in just a snap. It starts with customers placing an order for food online through the application, then the requested restaurant receives the order. 

After that, the restaurant does their usual job — start preparing the food and after your tasty food is cooked, it is packed and a delivery partner will come and pick it up. They will try their best to reach you faster and then, from the comfort of your mobile or however you want to pay, you can pay and get the food!

How much does UberEats / DoorDash charge restaurants? 

Can you guess how much percent UberEats charges generally per order? It’s 30%! Which is a lot to lose for restaurants. However, they charge this much amount only when delivery staff is managed by them.

If restaurants take up the part of managing delivery partners, they will get a flat 15% concession. Doordash charges range between 7 to 15% delivery charges per order. Restaurants can save almost 15% of their money when a customer decides to pick the order up by themselves! While this opens one avenue of saving for restaurants, this is not the way we primarily intend to discuss in this article.

Is UberEats / DoorDash worth it for restaurants?

Now let us discuss the problem. Out of all the industries, the food industry is definitely one of the most profitable ones with the potential margins of more than 60%! 

For a restaurant that sells their food with a decent margin, giving up 30% of every order they get to Uber eats might not bring a huge effect on profits. But, this situation becomes more complicated for startups that provide their service for less margin. For them, taking orders from Ubereats/Doordash would not be very profitable. If they give 30% of their entire order and continue with very little profit, it will be a waste of their precious time and energy.

One positive thing that UberEats does is that it indirectly markets restaurants to people through displaying their name when someone orders any food. However, It doesn’t recommend any specific dish from a restaurant so this marketing would not be much helpful. Also, if UberEats/Doordash decides to show your competitor’s restaurant instead of yours, your customer base might even shrink!

We are not here to vilify services like Ubereats or Doordash! They really brought a revolution and in situations like pandemics or rainy season where people would not come out often, they provide restaurants with ample of orders and in that case, 30% cut might be okay. However, we must always look for evolution and finally an easy and affordable space for everyone.

 

We promised a feasible solution and that is Dinerrush.

What is a Dinerrush?

Dinerrush is a full-fledged online food ordering system that provides you with a plethora of tools which make restaurants’ and cafes’ lives easier. We help in managing multiple things in a single common channel. And the best part? Dinerrush charges absolutely no commission per order of food for cafes and restaurants. Too good to be true? We earn money not through taking commissions but through fixed subscriptions that are affordable to restaurants.

What additional tools and services do we offer? Plenty! :

  • Table reservation systems

The food ordering system would be seamlessly integrated with the table reservation management system where our customers are given the option of booking a table in the restaurant. It can also connect to Google’s Book a Table feature so that customers of restaurants can directly come to the table reservation system.

  • SEO Friendly Website

Dinerrush provides a free SEO friendly website that is specific for your restaurant! We also bear the cost for hosting for the restaurants!

  • Gift card system

Gift vouchers are a very effective method for increasing revenue for the business. Customers can conveniently buy them and give gifts to others. Not only customers, Restaurants themselves can provide these gift cards to unhappy customers and motivate them to visit again.

These vouchers can be redeemed by buying food online or your restaurant staff also can redeem them for dine in customers through your custom mobile application. Restaurants can also see detailed reports regarding gift card buyers and redeemers.

  • Order receiving Mobile app for staff

Not only a website, but a dedicated app is provided to the restaurant staff where they can access all essential information and capabilities at one place. The app includes reservations, food orders and gift cards. With a single touch response, they can accept or decline a reservation and do lots of other stuff.

In this system, by just scanning a QR code, customers would be able to access the restaurant menu, order the food and even pay for it all from their mobile phone when dining in. This removes the need of waiting for the customers while placing orders. It can help in reducing restaurant staff which ultimately helps in the reduction of costs for running the restaurant.

  • Loyalty Points System

Loyalty points are the reward points that can be provided by restaurants which can recognize loyal customers and increase their loyalty more! Receiving reward points motivates the customers to visit or order from the restaurant again. Restaurants can customize all kinds of parameters like who and when can one receive these points at how much value and the time when they can redeem them.

How is Dinerrush different from UberEats and DoorDash?

Dinerrush is a complete online restaurant food ordering system which only is set to improve itself.

Although it looks very similar to other services, the difference comes with the suite of tools and services we offer along with the way we make money. While Ubereats/Doordash provide only an ordering system that tracks upto delivery, Dinerrush provides tools that track and execute both online and dine in orders all the way from reservation of table, food orders and payment.

While UberEats/Doordash primarily showcase themselves, Dinerrush gives restaurants their own identity by providing them with their very own website to take orders online.

In this way, any restaurant’s customers would really become their customers instead of Ubereats/Doordash’s customers. When you work with Ubereats/Doordash, you essentially pay commissions for them for your own customers!

As for Dinerrush, Restaurants are our customers and we are here to serve you.

The website that Dinerrush provides comes with an online menu for restaurants and cafes which end customers can use to do all kinds of stuff — order food online, reserve tables, buy gift cards all for no extra charge to you. This exclusive website provides a strong brand identity and presence for you and the person would be converted to the customer of that particular restaurant.

In return, Dinerrush takes a fixed and affordable subscription that can be charged annually or monthly.

In this subscription model, a basic flat cost is charged every month for the service irrespective of the number of orders and the revenue a particular restaurant generates for themselves. To compare, Ubereats/Doordash commission range from 7 to 30% every order.

 

Final Words

We hope that by now, you have a good understanding of business models of ubereats/doordash and restaurant’s business models and how Dinerrush’s model benefits restaurants.

In the end, positive growth can only happen if the power of technology is used to bring value to customers. Dinerrush is attempting to do exactly that!

If you have any queries regarding Dinerrush, use our contact us form or chat option to get in touch with us.

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