With third-party delivery apps like DoorDash, Uber Eats, and Grubhub charging commissions up to 30%, restaurant owners are turning to no-commission online ordering platforms to keep more profits. ChowNow offers a commission-free solution with branded websites and apps, marketed as a way to build direct customer relationships. But is ChowNow too good to be true? Hidden in its Privacy Policy is a concerning practice: ChowNow shares user data with third-party advertisers and re-marketers, potentially including data brokers or competitors like DoorDash. This could undermine your restaurant’s success while boosting ChowNow’s revenue. In this article, we’ll explore ChowNow’s features, compare it to competitors like Food Order Pro, and reveal why its data-sharing practices might make it a scam.
What Does ChowNow Offer Restaurant Owners?
ChowNow is a commission-free online ordering platform that helps restaurants take orders through branded websites, mobile apps, or integrations with Google and social media. According to ChowNow’s website, its key features include:
- No-commission ordering: Restaurants pay a flat monthly fee (starting at $99/month, depending on the plan) instead of per-order commissions.
- Branded website and app: Customizable ordering pages and apps with your restaurant’s branding, optimized for Google search and customer convenience.
- Customer data access: Collect customer information like emails and order histories for marketing and loyalty programs.
- Multi-platform integrations: Orders can be placed via your website, Google, Instagram, or a branded app, with seamless syncing to your POS system (e.g., Toast, Square).
- Loyalty programs: Tools like Order Better to reward repeat customers with discounts or free items.
- Delivery options: Use your own drivers or integrate with third-party delivery services (e.g., DoorDash Drive), though third-party commissions may apply.
ChowNow claims to serve over 22,000 restaurants and boasts that its platform can increase online orders by streamlining the ordering process. These features sound appealing, especially for restaurants looking to avoid high commissions. But a closer look at ChowNow’s Privacy Policy reveals a hidden practice that could harm your business.
ChowNow’s Privacy Policy (link) states: “We share Other Information about your activity in connection with your use of the Services with third-party advertisers and remarketers for the purpose of tailoring, analyzing, managing, reporting, and optimizing advertising you see on the Platforms, the Websites, the Apps, and elsewhere. These third parties may use cookies, pixel tags (also called web beacons or clear gifs), and/or other technologies to collect such Other Information for such purposes.” It further notes that by using the platform, customers consent to this data processing.
“Other Information” includes data about user activity, such as browsing behavior, order details, and interactions with ChowNow’s platform. While the policy doesn’t explicitly name the third parties, this language suggests ChowNow shares this data with advertisers, remarketers, or potentially data brokers, who could sell it to competitors like DoorDash, Uber Eats, or Grubhub. These apps are highly incentivized to buy real-time customer data—such as emails, order preferences, and locations—to fuel their marketing machines. For example, if a customer orders through your ChowNow-powered website, DoorDash could use their data to send a targeted ad for a similar meal, pulling them to DoorDash’s app where you pay 15-30% commissions.
This data sharing provides no direct benefit to your restaurant but is likely a significant revenue source for ChowNow. Having raised over $70 million in venture capital from investors like Catalyst Investors and Toba Capital, ChowNow has a fiduciary responsibility to deliver returns quickly. Selling customer data to third parties, including potentially data brokers or delivery apps, is a lucrative way to achieve this, even if it comes at the expense of the restaurants they serve. Most restaurant owners, focused on daily operations, may not thoroughly read the Privacy Policy, leaving them unaware that their customers’ data is being shared in ways that could harm their business.
ChowNow’s Misleading Marketing Tactics
ChowNow invests heavily in marketing to position itself as a restaurant-friendly alternative to third-party apps, but its tactics obscure the risks of data sharing. Here’s what we found:
- Exaggerated benefits: ChowNow claims its platform can “increase orders” and “build loyalty” through branded websites and apps. However, these claims don’t account for how shared customer data may drive orders to third-party apps, reducing your profits due to commissions.
- Polished promotions: ChowNow’s website, case studies, and videos highlight success stories of restaurants boosting sales, without mentioning how customer data is shared with third parties for advertising purposes.
- Free setup and demos: ChowNow offers free demos and onboarding support to make adoption easy, creating a sense of trust while glossing over the long-term risks of data sharing.
By emphasizing commission-free ordering and customer loyalty, ChowNow downplays how its data-sharing practices undermine these benefits. This lack of transparency misleads restaurant owners into believing they’re gaining full control over customer relationships when, in reality, their data is being used to benefit third parties.
ChowNow Isn’t the Only No-Commission Platform
ChowNow markets itself as a leading no-commission solution, but it’s not the only option. Competitors like Food Order Pro offer commission-free ordering. For example:
- Food Order Pro: A growing platform offering white-labeled, commission-free ordering with customizable ADA-compliant websites, marketing tools and no data sharing with third-party advertisers or apps.
Unlike ChowNow, these platforms focus on keeping customer data secure and exclusive to the restaurant, avoiding the risks of sharing it with advertisers or competitors. While they charge monthly fees (e.g., Food Order Pro starts at $129/month for online ordering), they provide a true direct ordering solution that supports your long-term success.
Serious Problems with ChowNow
Beyond data sharing, ChowNow poses significant risks that could harm your restaurant. Here are two major concerns:
1. Loss of Customer Loyalty to Third-Party Apps
By sharing customer data with third-party advertisers and remarketers, ChowNow enables competitors like DoorDash, Uber Eats, and Grubhub to target your customers with precision marketing. For example, these apps can use data about a customer’s recent order or location to send targeted promotions, pulling them to their platforms where you pay high commissions. This undermines ChowNow’s loyalty programs, as customers are incentivized to order through third-party apps rather than your website or app, costing you 15-30% per order.
2. Potential Privacy Law Violations
ChowNow’s data-sharing practices raise concerns under privacy laws like California’s Consumer Privacy Act (CCPA). If customers aren’t clearly informed about how their data is shared with advertisers or remarketers, your restaurant could face legal scrutiny for non-compliance. The Privacy Policy’s vague language about “third-party advertisers” and “other technologies” leaves restaurant owners vulnerable, as you’re responsible for ensuring compliance with privacy regulations. Additionally, while ChowNow’s websites are generally ADA-compliant, you must verify this for your specific site, as non-compliance could lead to costly lawsuits.
Is ChowNow a Scam?
We believe ChowNow’s practices suggest it operates as a deceptive scam for restaurant owners. Here’s why:
- Data sharing with third parties: ChowNow shares customer data with advertisers and remarketers, potentially including data brokers or apps like DoorDash, enabling competitors to target your customers and drive orders through high-commission platforms.
- Misleading marketing: ChowNow promotes commission-free ordering and loyalty tools without disclosing how data sharing undermines these benefits, misleading owners about the platform’s value.
- Legal risks: Potential CCPA violations and the need to verify ADA compliance expose restaurants to lawsuits or regulatory issues.
- Profit-driven motives: With over $70 million in venture capital, ChowNow is pressured to deliver quick returns to investors, likely through selling valuable customer data at your expense.
While ChowNow’s commission-free model and branded apps are appealing, the practice of sharing customer data with third parties betrays the trust of restaurant owners. This data sharing benefits ChowNow and its partners far more than it helps your restaurant, turning a supposed solution into a long-term liability.
What Should Restaurant Owners Do?
ChowNow’s data-sharing practices make it a risky choice for restaurants aiming to build direct customer relationships. Instead, consider true no-commission platforms that prioritize your business. Options include:
- Food Order Pro: Offers white-labeled, commission-free ordering with ADA-compliant websites, marketing tools and no data sharing with advertisers or third-party apps.
While these platforms charge monthly fees (typically $50-$180/month), they’re a worthwhile investment to avoid data sharing and legal risks. Before choosing a platform, ask these questions:
- Does the platform share customer data with advertisers or competitors?
- Is the website ADA-compliant to avoid lawsuits?
- Are all fees transparent and compliant with local laws?
- Can I retain full control over customer data for my marketing?
- Are success claims backed by verifiable data?
Protect Your Restaurant’s Future
ChowNow’s commission-free model and branded ordering solutions may seem like a win for restaurants, but the hidden practice of sharing customer data with third-party advertisers and remarketers makes it a potential scam. By enabling data brokers or competitors like DoorDash, Uber Eats, and Grubhub to access your customers’ information, ChowNow risks pulling orders to high-commission platforms, costing you profits. Potential legal risks, like CCPA violations, further threaten your business.
Instead of trusting ChowNow’s polished promises, invest in a white-labeled ordering system like Food Order Pro or others like them. These platforms offer commission-free ordering, protect your customer data, and ensure ADA compliance, helping you build a loyal customer base without hidden costs. Protect your restaurant’s profits and reputation by choosing a platform that truly supports your success.
Ready to take control of your online ordering? Check out Food Order Pro or contact Food Order Pro for a demo to find a solution that keeps your restaurant safe and profitable.
