Commissions in the restaurant sector
Online ordering platforms have become one of the assets to overcome the coronavirus crisis that devastated the entire planet. More and more restaurants are deciding to incorporate home delivery, pick-up or table service into their services.
Delivery & take away Apps
In recent years, there has been a trend in the restaurant world: home delivery service. There are many platforms and apps designed to work as intermediaries between restaurants and customers. The ones that stand out the most are:
- Just Eat
- Uber Eats
How do they work?
- Users, through an app, choose their order.
- The customer pays the amount of the order.
- The restaurant from which the food is ordered receives the order and starts the preparations.
- Once prepared, the order is delivered to the delivery person or ‘rider’.
- The rider delivers the order to the customer.
The system, seen in this way, is simple. However, like everything in life, it has its pros and cons. What is the main disadvantage of the large online delivery service platforms? COMMISSIONS.
What is a commission?
The amount charged for commercial transactions that corresponds to a percentage of the amount of the transaction. In other words, for each order placed, the intermediary platform receives a certain economic percentage.
What percentage are we talking about?
The percentage of commission assigned will depend on each platform. Generally speaking, the commissions of the large online delivery service platforms exceed 30%. Specifically, the commissions established by Deliveroo are around 40%. For their part, Just Eats and Uber Eats range between 30% and 40% commission for each order placed. Finally, Glovo, another major online home delivery platform, has commissions ranging between 20% and 50%. It should be noted that each platform negotiates with the company the exact percentage of commission they will work with.
Explaining these percentages with more concrete data, it can be concluded that, for every 20 euros of order, these platforms acquire, on average, between 6 and 8 euros.
Is it only the commissions that represent an extra expense for the hotelier?
Commissions are an important expense for the restaurateur who decides to use the service of the large delivery platforms. However, it is not the only outlay they have to face.
Many food delivery apps charge a fee to anyone who wants to start using their services. According to the Madrid Catering Association, this fee can reach 320 euros.
How to switch to ‘Delivery’ without making excessive outlays?
Companies like Banzzu are the key to solving this problem. Unlike many of its competitors, Banzzu’s model is based on a fixed monthly fee that differs according to the system option chosen by the customer. In other words, the hotelier who decides to contract the service offered by Banzzu knows in advance the monthly cost. A cost that does not vary according to the number of orders or other parameters.
Banzzu also offers an hourly delivery service through various partnerships with companies according to the needs of each restaurant.
In short, commissions are a real headache for restaurateurs when contracting delivery services. With the aim of alleviating this problem, the Banzzu platform was born, which offers a fixed monthly fee (which varies depending on the service contracted) avoiding substantial financial losses for the hotelier for each order placed by the customer.