No-commission ordering systems like ChowNow and Toast promise to help restaurants avoid high fees from third-party apps like DoorDash and Uber Eats. But many of these platforms have a hidden agenda: they make money by selling your customer data to big tech companies, including potentially those same third-party apps. In this article, part of our series How Data Scientists Took Over the Restaurant Industry, we’ll explore how these platforms share your customer data, who benefits, and what you can do to protect your restaurant.
Platforms like ChowNow and Toast offer commission-free ordering for a monthly fee, but their privacy policies reveal they share customer data with third parties:
ChowNow’s Data Sharing
ChowNow’s Privacy Policy states they share “Other Information” about user activity with third-party advertisers and remarketers to optimize advertising. This includes browsing behavior, order details, and more, which could be sold to data brokers or apps like DoorDash, who use it to target your customers with promotions.
Toast’s Data Sharing
Toast’s Privacy Statement notes they share data with “business partners” and “service providers,” which could include data brokers or third-party apps. This data—emails, addresses, order histories—helps apps like Uber Eats send targeted ads, pulling customers to their high-commission platforms.
We covered how third-party apps buy this data in our overview article, How Third-Party Apps Like DoorDash Steal Your Restaurant Customers.
Why They Sell Your Data
Companies like ChowNow and Toast have raised significant venture capital—ChowNow alone has over $100 million. Their investors expect quick returns, and selling customer data is a lucrative revenue source. By partnering with big tech companies, including potentially DoorDash or Grubhub, these platforms profit from your customer data while you lose control over your relationships. This data sharing enables third-party apps to target your customers, driving orders to their apps where you pay 15-30% commissions.
Additional Risks for Restaurants
Data sharing isn’t the only concern with these platforms:
- Legal risks: Unclear data-sharing practices could violate privacy laws like the CCPA, leaving your restaurant liable.
- Non-ADA-compliant websites: Toast’s websites often fail ADA standards, risking lawsuits, as we noted in our series.
What Can Restaurant Owners Do?
Choose platforms that don’t share customer data with third parties, such as:
- Food Order Pro: Commission-free ordering with secure data practices and customizable ADA-compliant websites with no data sharing to big tech companies.
Compare this to DoorDash Storefront’s data-mining tactics in our article, How DoorDash Storefront Uses Data Mining to Target Your Restaurant Customers.
Protect Your Restaurant’s Future
No-commission platforms like ChowNow and Toast may seem like allies, but their data-sharing partnerships with big tech companies can hurt your restaurant. Protect your customer data by choosing platforms that prioritize your privacy. Explore the rest of our series, How Data Scientists Took Over the Restaurant Industry, to learn more.
Ready to take control of your online ordering? Contact Food Order Pro for a demo to keep your customers safe.
