What are Food Service Aggregators really serving? A look inside …

December 12, 2018
Delivery Revenue Projections
May 6, 2019

Food Service Aggregators (FSA) can complement your restaurant in several ways, but should they be  your main source of diner traffic? Let’s take a deeper look into the benefits they can provide and how they can affect your restaurant. 

#1.  FSAs provide delivery, a headache you don’t want to deal with. Sounds perfect, but let’s double click.

Delivery costs on average are 15-30% of your net sale cutting deep into your margins and diminishing profits. Additionally, it can take time to receive reimbursements for your sales further delaying your ability to recognize the revenue.

#2. Marketing exposure – especially to diners new to town or visiting.

It is no secret that one of the main value adds for adopting third party delivery is the ability to reach new customers. However promoting your restaurant isn’t the FSAs primary focus.  Their main focus is driving their own user engagement  and are less concerned with your individual success.  So if gaining a strategic marketing partner who is invested in your success is important to you, FSAs are probably not going to be the right fit.

#3. Drive new customers to your site with their promotions.

Historically, leveraging an external channel is a smart and cost effective strategy in driving new sales however when working with FSAs, you have little to no control over what happens after the sale. You lose out on valuable customer data which could be used to drive repeat business. Furthermore, with the exorbitant Customer Acquisition Fee that you are incurring, all you are left with is an average 20% less of your net sale, with no possible follow up marketing data.  

In summary, FSAs can certainly drive traffic to restaurants, and work nicely alongside other marketing efforts and platforms. But they should complement your primary platform – not be it. There are restaurant centric solution providers in the market that are invested in your success and will take a leadership approach in promoting your brand. EZ-Chow is one of those providers: we offer 3rd party delivery integration at no cost to you, every piece of marketing data that is collected is yours ONLY and accessible at any time and all online orders are integrated directly into your POS with no tablet required.

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