New research has found that 70% of takeaway consumers would rather the full cost of food went straight to the restaurant as opposed to commission of up to 25% going to food delivery apps.
The research by digital ordering technology provider Preoday, shows 82% of restaurants using door-to-door delivery apps believe they are paying too much commission.
As many as 25% of restaurants using the apps say they pay commission higher than 20% of the total food cost, while 38% say once a restaurant begins working with a door to door app, it is extremely difficult to break away.
Nick Hucker, CEO of Preoday said: “Such high commission fees can be damaging to a business’ profit, and in these challenging times, to its survival. Food service businesses make, on average, between 5-8% profit, so if they’re paying 20% plus in commission fees, that profit is being eaten away.”
Research shows that only 15% of consumers ‘don’t care’ where their money goes, despite 74% of those surveyed saying they use the apps, and only 23% saying they order direct from the restaurant.
A potential upside to using a door-to-door app for restaurants is the customer data they collect, however research shows 44% of app users said app firms had withheld customer data. As many as 43% of restaurants surveyed said they believed apps interfere with the direct relationship between the restaurant and its customers.
Hucker added: “There are many applications for the insight gained from customer data, but at its most basic, that data can help a business get to know its audience and build a relationship based on exactly what the customer wants.
“Without it, how can a restaurant, bar or pub get to know its customers better and therefore grow its takings?”
The research comes just a day after research showed that door to door delivery services were having a negative impact on the restaurant industry.