Small cafe’s and restaurants are fifteen years behind retailers in adopting digital systems according to the CEO of Preoday.
It seems that hospitality is playing catch-up when it comes to online ordering chasing the tails of high street retailers. The figures suggest only five percent of hospitality venues can take an order from a mobile phone holder.
But should small cafes and restaurants jump to the likes of commission charging Just Eat, Hungryhouse and Deliveroo for the quick fix solution? By employing such a company to ‘do it for you’ you could find that your business will not have the margins to self-promote and market your venue. It is a very real risk that many small businesses face. By adopting these systems you also run the risk of losing the communication with your customer. The figures may not add up too. Most restaurants run on a profit of around 10%. Around 30% of small businesses get their orders from the platforms. The commission-based platforms charge 14% so it doesn’t add up.
Currently, the Competition & Markets Authority are investigating the merger of Just Eat and Hungryhouse.
So what’s the alternative for small cafe’s, takeaways and restaurants?
Look at taking control and adopting online ordering of your own. Take control of your margins and look to market your business on its own merits. You can raise funding for marketing and development in the form of a merchant cash advance. Our team can advise just how easy and straightforward you can raise the funds you need. The funding can be used for any purpose including updating your digital marketing, building online ordering and more.