Third-party apps like DoorDash are known for charging high commissions, but they’ve found a new way to compete with no-commission platforms: offering “free” products that seem to help restaurant owners while secretly mining customer data. DoorDash Storefront is one such product, promising commission-free ordering with no monthly fees. But behind the scenes, it’s a data-mining tool designed to help DoorDash target your customers and drive orders to their high-commission app. In this article, part of our series How Data Scientists Took Over the Restaurant Industry, we’ll break down how DoorDash Storefront works and why it’s a risk for your restaurant.
What Is DoorDash Storefront?
DoorDash Storefront is marketed as a commission-free online ordering system for restaurants. Its key features include:
- No-commission ordering: Pay only a 2.9% + $0.30 credit card processing fee per order, with no monthly fees.
- Branded ordering system: A customizable platform integrated with your website or social media.
- Store locator map: A tool for multi-location restaurants to help customers find nearby stores.
- Customer data access: Collect customer information for marketing purposes.
These features seem ideal for restaurants tired of high commissions, especially with the “free” setup and no monthly fees. But there’s a catch that DoorDash doesn’t advertise.
The Data-Mining Trap
When customers order through your DoorDash Storefront-powered website, DoorDash collects detailed data: emails, phone numbers, addresses, food preferences, order timing, and budgets. Data scientists then use this information to fuel DoorDash’s marketing machine, targeting your customers with precision:
- Targeted ads: If a customer orders pizza at 6 PM, DoorDash can send a pizza deal ad right before their next dinnertime.
- Emails and notifications: Using the customer’s email, DoorDash sends promotions to nudge them back to the DoorDash app.
- Social media retargeting: DoorDash uses customer data to show ads on platforms like Instagram, leveraging their email and location.
Once customers return to the DoorDash app, they’re likely to order from any restaurant on the platform—not just yours—where DoorDash charges 15-30% commissions. This means your first-time Storefront customer is unlikely to order directly again, costing you more in the long term. As we discussed in our overview article, How Third-Party Apps Like DoorDash Steal Your Restaurant Customers, this data-driven strategy is how apps take over your customer relationships.
Why This Hurts Your Restaurant
DoorDash Storefront’s data-mining practices have serious consequences:
- Higher costs: Customers funneled to DoorDash’s app mean you pay high commissions on future orders.
- Loss of loyalty: Programs like DashPass incentivize customers to use DoorDash, not your website.
- Legal risks: Unclear data practices could violate privacy laws like the CCPA if customers aren’t informed about how their data is used.
What Can Restaurant Owners Do?
Avoid “free” products from third-party apps like DoorDash Storefront. Instead, choose no-commission platforms that don’t share customer data, such as:
- Food Order Pro: Commission-free ordering with secure data practices and customizable websites with no data sharing to third-party apps.
Learn more about how no-commission platforms can still pose risks in our article, How No-Commission Ordering Systems Sell Your Customer Data to Big Tech.
Protect Your Restaurant’s Future
DoorDash Storefront may seem like a cost-effective solution, but it’s a data-mining trap that helps DoorDash target your customers for their high-commission app. Protect your restaurant by choosing platforms that prioritize your data privacy. Check out the rest of our series, How Data Scientists Took Over the Restaurant Industry, to learn more about these tactics.
Ready to take control of your online ordering? Contact BentoBox or check out Food Order Pro for a demo to keep your customers safe.
