Running a restaurant is tough enough without big food delivery apps like DoorDash, Uber Eats, and Grubhub taking a big slice of your profits. These companies seem like lifesavers, offering easy online ordering and delivery services. But there’s a catch. Their business model isn’t just about delivering food—it’s about taking control of your customers and using their data to make money, often at your expense. This is obvious with their standard delivery apps, but recently they have been tricking restaurant owners into signing up for their no commission ordering systems, making restaurant owners think they have figured out the “hack” to win in online ordering…only to be further falling into a trap. In this article, we’ll break down how these giants operate their online ordering systems, why their “free” tools can hurt your restaurant, and what you can do to protect your business.
Why the No Commission Doordash Storefront product or UberEats Direct Seem Like a Good Deal
At first glance, using the DoorDash’s Storefront or Uber Eats Direct, or Grubhub looks like a win. They offer tools to help your restaurant reach more customers without you lifting a finger. For example, DoorDash’s Storefront product gives you:
- No-commission ordering: You keep more money per order.
- A store locator map: Customers can find all your locations easily.
- A free website: A professional-looking site with no monthly fees.
These perks sound amazing, right? They make it easy to get started with online ordering, especially if you’re not tech-savvy. But here’s the problem: these “free” tools come with a hidden cost that can hurt your restaurant in the long run.
The Hidden Cost: Your Customer Data
When you use a third-party app’s online ordering system, you’re handing over something incredibly valuable: your customer data. Every time your customer places an order through DoorDash’s Storfront, Doordash collects details like:
- The customer’s email and phone number
- Their geographic location
- Their favorite foods and restaurants
- The time of day they order
- How much they typically spend
This realtime data is the digital gold that Doordash relies on for success. Why? Because it lets Doordash build a detailed profile of your customers. They know exactly who they are, what they like, how much they like to spend and when they’re hungry. And they use this information to keep customers coming back—not to your restaurant’s storefront ordering link, but instead to their marketplace app where Doordash makes their 25% to 30%. Without exception, that is how the business works.
How They Use Your Data to Steal Your Customers
Big delivery apps don’t rely on traditional advertising like online ads, billboards, or brand ambassadors. Those methods are expensive and less effective. Instead, they use your customer data and your brand to create a powerful marketing machine that’s smarter and sneakier. Here’s how it works:
Step 1: They Gain Your Customers’ Trust
When a customer orders from your restaurant through DoorDash Storefont, they trust your brand. They associate the great food and service with you. But because the order happens through DoorDash’s system, DoorDash gets all the data and builds a relationship with your customer. They become the middleman, and you lose direct contact with the people who love your food.
Step 2: They Target Your Customers with Perfect Ads
With all that customer data from the first time order, DoorDash, Uber Eats, and Grubhub can send highly targeted ads that are way more powerful than instagrams “boost” a post. For example, if they know a customer loves pizza and orders every Friday at 6 PM, they can send an email or show an Instagram ad to that logged in user based on the email for the customer you gave them for pizza deals right before dinnertime. They know the customer’s location, preferences, and budget, so their ads are repeated and are incredibly effective. These ads push customers to order through the Doordash’s or UberEat’s standard app app again, not directly from your restaurant website.
Step 3: They Encourage Re-Ordering Through Their App
Once they have your customers in their app, these companies make it easy to keep ordering. They offer loyalty programs at your expense like DoorDash’s DashPass or Grubhub+ that give customers free delivery or discounts. These perks make customers loyal to the app, not your restaurant. Over time, this means more orders go through the delivery app, where they charge high commission fees—sometimes up to 30% per order. That’s money coming out of your pocket.
Why This Hurts Your Restaurant
The business model of these delivery apps is designed to make them money, not you. While tools like DoorDash’s Storefront seem like a great deal, they’re a trap. By giving away your customer data, you lose control over your relationship with your customers. Here’s why that’s a problem:
- Higher costs: The more orders go through the app, the more you pay in commission fees, which can eat up to 30% of each sale.
- Loss of loyalty: Customers become loyal to the delivery app, not your restaurant, making it harder to build a repeat customer base.
- No control: You can’t contact your customers directly to offer promotions or encourage them to order from your website, where you keep more of the profits.
In the long term, relying on these apps makes it harder for your restaurant to thrive. You’re not just paying for delivery—you’re giving away the ability to grow your business on your own terms.
What You Can Do to Protect Your Restaurant
The good news? You don’t have to rely on DoorDash, Uber Eats, or Grubhub to succeed. Here are some simple steps to take back control of your customers and your profits:
1. Build Your Own Online Ordering System
2. Offer Your Own Loyalty Program
3. Use Delivery Services Wisely
Take Control of Your Restaurant’s Future
Big food delivery apps like DoorDash, Uber Eats, and Grubhub may seem like partners, but their business model is built to benefit them, not you. By offering “free” tools like online ordering systems or websites, they gain access to your customer data and use it to keep customers ordering through their apps. This leads to higher commissions and less control for you.
By investing in your own online ordering system and building direct relationships with your customers, you can keep more of your profits and grow a loyal customer base. Don’t let these delivery giants trick you into giving away your most valuable asset—your customers. Take control today and build a stronger, more profitable restaurant for the future.
Ready to take back your customers? Check out platforms like BentoBox or Food Order Pro to start your own online ordering system and keep your customer data where it belongs—with you.
