For restaurants operating on thin margins, even small costs can have a big impact on profitability. Ordering and delivery platforms that take 10-30% sales commissions can significantly eat into earnings. But new zero-commission ordering solutions allow restaurants to bring digital convenience while keeping more profit per order.
The High Costs of Commission-Based Apps
Third-party food ordering and delivery apps have surged in popularity in recent years. Platforms like UberEats, DoorDash, and Grubhub offer restaurants key benefits:
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- Increased exposure to new customers
- Management of delivery logistics
- Access to ordering data and analytics
However, these apps come at a steep price. Most charge commissions between 10-30% on every order. With tight margins in the restaurant industry, these fees can wipe out profits on some menu items.
On a $100 order, a 20% commission would cost the restaurant $20. For a dish with a 30% food cost, that entire $6 profit margin would be erased by the commission fee.
These fees are unsustainable for many small eateries running on thin margins. Owners are faced with a tough choice – absorb the commissions at lower profits or raise menu prices and risk losing customers.
How Zero-Commission Apps Are Changing the Game
New ordering platforms are disrupting the space by eliminating commission fees. We apps like Tapless Menu provide a similar suite of digital features without the huge markup. Instead, they charge a flat monthly software fee – typically just $19 – for access to the system. Since they don’t take a percentage from each order, restaurants keep more profit.
These platforms are also optimized specifically for individual restaurant’s needs – not maximizing earnings for the middleman.
Zero-commission options level the playing field so independent eateries can provide mobile ordering and other digital experiences.
Financial Benefits for Your Restaurant
Switching to a zero-commission ordering platform provides compelling financial upsides:
Increased Profits on Every Order
Without paying 10-30% on each transaction, your restaurant keeps significantly more money from online and delivery sales.
For a $100 takeout order through a 30% commission app, you would net just $70 after the $30 fee. With Tapless Menu’s flat-rate model, you earn the full $100.
This adds up fast. Even just 5 extra orders per day equals an extra $150 or more stayed on your bottom line rather than going to commissions.
Protection from Founder’s Dilemma
With commission models, you face an impossible choice: absorb the fees at lower margins or raise prices and risk losing customers.
Zero-commission software eliminates this founders dilemma altogether. You earn maximum profit on digital orders without any tradeoffs.
Cost Savings Over Paper Menus
Printing paper menus comes with significant recurring costs for printing and replacing. Digital menus cost nothing to update and provide other savings.
Performance-Based Pricing
Pay a flat rate aligned with your sales volume rather than a percent. Tapless Menu offers plans ranging from $99-$299 based on monthly order volume. As your sales increase, upgrade seamlessly to higher tiers.
Optimized for Profitability
Unlike UberEats, zero-commission platforms cater specifically to restaurants’ needs for profitability – not what makes most money for the middleman.
Enterprise-Level Technology for SMB Budget
Expensive restaurant tech is now affordable for small business with low flat-rate pricing.
Optimizing Your Menu for Maximum Profits
To multiply the savings from zero-commission ordering, optimize your menu with profitability in mind:
Spotlight High Margin Items
Highlight your most profitable dishes prominently on the menu. For example, drinks, desserts, and starters tend to have higher percentages.
Suggest Add-Ons
Use behavioral prompts to nudge customers toward add-ons that boost checks and profits.
Offer Bundles and Family Meals
Combination meals and bulk options provide great value to guests while improving profitability.
Test New Items
Limited-time specials help test potential new profitable menu items. Apps make it easy to temporarily add test items.
Run Targeted Promotions
Offer strategic discounts on high food cost items you want to move or during slow periods to stimulate orders.
Analyze Your Numbers
Use sales reports to see which items perform best. Tweak the menu and presentation based on hard data.
Real-World Examples of Increased Profits
Switching to zero-commission ordering can result in dramatic profit growth, especially for higher volume locations. Here are some real examples from restaurants using Tapless Menu:
Pizzeria by the Numbers
A NYC pizzeria selling around 150 pies per day was paying nearly $5,000 in commissions monthly. After switching to Tapless Menu, they kept an extra $60,000 yearly.
Breakdown for a Burger Joint
Selling around 100 burgers daily at an average of $10 each, 30% commission fees would equal $30 per burger or $3,000 monthly. Those fees are now savings.
Profit Growth for Family Restaurant
A family restaurant increased profit margins by 17% – from 23% to 40% – in the first year after ditching a delivery app taking 25% commissions.
Choosing the Right Commission-Free Platform
To maximize your savings, choose an ordering platform offering the right combo of affordability, features, and flexibility:
Affordable Flat-Rate Plans
Look for simple transparent pricing – not hidden fees. Tapless Menu starts at just $99/month.
Robust Digital Menu Management
Easily build mobile-friendly menus with dragged-and-dropped customization options to encourage add-ons.
Ordering Integrations
Seamlessly send orders to the kitchen and delivery drivers to speed up service.
Built for Small Businesses
Ensure the platform truly optimizes for the needs of independent restaurants over profits for shareholders.
Scales With Your Growth
Upgrade seamlessly to higher flat-rate plans as your order volume increases.
The Future is Commission-Free
As consumer habits shift online, high commission fees from delivery apps are not a sustainable model. Restaurant technology is moving toward maximizing profits for owners by cutting out the middleman.
By providing the same digital capabilities through a low flat-rate model, restaurants can future-proof for mobile orders without getting nickeled and dimed.
Zero-commission ordering systems represent the next evolution – allowing small businesses to keep up with tech and retain more earnings. To learn more about solutions designed specifically for independent restaurants, visit TaplessMenu.com.