Discussion
Was listening to radio last night, and they were on about Jun21 being extended etc, chatting to a restaurant owner.
He was talking about how companies like Just eat have saved him over the last year but also eat into his profits, their commission if they deliver is 30 bloody percent, 15 if you pickup.
I found that astonishing how our laziness is being exploited by some faceless nerks who are charging these places who are on their knees 30%!
But as this guy said we are stuck as without them we would be done, is anyone aware of this and how much these companies basically exploiting our laziness are making, it's astounding to me sorry!
Have to admit I never do takeaways, but this has made me realise if I do I would never buy via an app unless it is directly linked to the restaurant or company named.
He was talking about how companies like Just eat have saved him over the last year but also eat into his profits, their commission if they deliver is 30 bloody percent, 15 if you pickup.
I found that astonishing how our laziness is being exploited by some faceless nerks who are charging these places who are on their knees 30%!
But as this guy said we are stuck as without them we would be done, is anyone aware of this and how much these companies basically exploiting our laziness are making, it's astounding to me sorry!
Have to admit I never do takeaways, but this has made me realise if I do I would never buy via an app unless it is directly linked to the restaurant or company named.
Why does the fee jump from 15% to 30% when there is a delivery charge?
During lockdown I did try to use takeaways own websites or call in. Just Eat is very convenient though.
A lot of takeaways have stickers advertising other companies that rival Just Eat. I guess their fees are lower and they want to avoid using Just Eat.
During lockdown I did try to use takeaways own websites or call in. Just Eat is very convenient though.
A lot of takeaways have stickers advertising other companies that rival Just Eat. I guess their fees are lower and they want to avoid using Just Eat.
They all charge 30% to vendors if delivering and 15% if customer collects, unless you are a chain with the scale to negotiate. And foodhub I think is going lower than the rest.
And then theu charge the customer a few more quid on top.
Some places have discounts advertised in their windows, but many don't... so if they are not incentivising their customers to go direct, then the customers will naturally go for the convenience of an app.
And then theu charge the customer a few more quid on top.
Some places have discounts advertised in their windows, but many don't... so if they are not incentivising their customers to go direct, then the customers will naturally go for the convenience of an app.
Edited by hyphen on Sunday 13th June 12:05
dontlookdown said:
Like many aggregators, these platforms are essentially parasitic. They spend a fortune on marketing, and having thus captured the consumer then sell them back to the restaurants at a ludicrous premium. Because they can.
And eventually they will kill them, as a takeaway with a high street location can't compete with a black box kitchen in a cheap industrial unit. So the latter will price lower and pay for a sponsored priority listing. Your generic takeaway place selling the common menu stuff is going to struggle long term.
Years ago I used to order from a local chinese, but when Just Eat came out they never went on it. I liked the convenience of being able to order on the website rather than ring though my order. They lost my custom for a long time. However now they have set up their own website I will start ordering from them again as they are better that the place I have been ordering from on Just Eat.
Just Eat were adding on a delivery fee £ 2.00 and service charge 0.50p
Just Eat were adding on a delivery fee £ 2.00 and service charge 0.50p
At the end of the day, Just Eat would die overnight if the restaurants stopped paying. 30% might seem like a lot, but as a restaurant owner would you rather have 70% profit for 1000 new orders a month vs nothing.
The reach Just Eat have is massive, and just like any business they make a profit from people - B&Q probably charge you 50% over what it costs them to buy the product.
The infrastructure Just Eat have won't be cheap, the company I work for does EPOS and online ordering (And a load of other techy stuff) for the majority of pubs and big chain restaurants and everything is under constant development by massive teams. Apps, websites, backend, frontend, APIs, card charges and server hardware - None if it is cheap in either people cost (time) or actual money to buy stuff, and we don't even have Snoop Dogg!
The reach Just Eat have is massive, and just like any business they make a profit from people - B&Q probably charge you 50% over what it costs them to buy the product.
The infrastructure Just Eat have won't be cheap, the company I work for does EPOS and online ordering (And a load of other techy stuff) for the majority of pubs and big chain restaurants and everything is under constant development by massive teams. Apps, websites, backend, frontend, APIs, card charges and server hardware - None if it is cheap in either people cost (time) or actual money to buy stuff, and we don't even have Snoop Dogg!
hyphen said:
Is it the card payment that you were after? Hence not calling them?
I'm trying to call and collect as much as possible, some though are in zealous parking warden territory.
No as they will take a card over the phone, it more a case I am usually half cut when I order a delivery and don't want to speak to anyone. You can go onto the website, look at your previous order and hit order again rather than pickng the items again, plus it remembers the card and the address. I'm trying to call and collect as much as possible, some though are in zealous parking warden territory.
Edited by Cotty on Sunday 13th June 12:32
Just Eat are parasites but unfortunately their market share means they're hard to avoid.
My brother was paying them roughly £20k pa in commission. He tried to move away from them by setting up his own website but has had to move back to them.
JE insist that your website prices charge the same as theirs. However one thing Ive seem some takeaways doing is offering a 10% discount on the final price. I wonder if that circumvents JE rules legally?
My brother was paying them roughly £20k pa in commission. He tried to move away from them by setting up his own website but has had to move back to them.
JE insist that your website prices charge the same as theirs. However one thing Ive seem some takeaways doing is offering a 10% discount on the final price. I wonder if that circumvents JE rules legally?
mw88 said:
At the end of the day, Just Eat would die overnight if the restaurants stopped paying. 30% might seem like a lot, but as a restaurant owner would you rather have 70% profit for 1000 new orders a month vs nothing.
It would die overnight if more places had their own website and more are doing so. I am now sorted for chinese and Indian without touching Just Eat again.https://www.sundotakeaway.co.uk/
http://www.rajdoot-pettswood.co.uk/
http://www.tiffinchoicebromley.com/
I can even order a kebab without touching Just Eat https://www.pettswoodkebabhouse.co.uk/#
Countdown said:
JE insist that your website prices charge the same as theirs. However one thing Ive seem some takeaways doing is offering a 10% discount on the final price. I wonder if that circumvents JE rules legally?
That is a bit much. I don't blame them trying to dodge such proscriptive t&c'sCotty said:
It would die overnight if more places had their own website and more are doing so. I am now sorted for chinese and Indian without touching Just Eat again.
https://www.sundotakeaway.co.uk/
http://www.rajdoot-pettswood.co.uk/
http://www.tiffinchoicebromley.com/
I can even order a kebab without touching Just Eat https://www.pettswoodkebabhouse.co.uk/#
But they'll still be paying out for another provider, whether that's FoodHub or someone else. Might not be 30%, but it's still something. Plus there's the additional advertising Just Eat do, sure you might get a couple of regulars ordering from your site but other than a leaflet through the door, how would you get new customers?https://www.sundotakeaway.co.uk/
http://www.rajdoot-pettswood.co.uk/
http://www.tiffinchoicebromley.com/
I can even order a kebab without touching Just Eat https://www.pettswoodkebabhouse.co.uk/#
The next point is probably irrelevant for 90% of people, and from a purely technical point of view, they look cheap. - If a company is charging £11 a week or 50p per order for an EPOS terminal, printer, online payments, website and app it makes me wonder how much effort they've put in and how secure they are.
Never used any of them and never will.
It is another scramble to the bottom.
How does a takeaway make margin when an app is taking 30%?
Simple.
Smaller portions and cheaper ingredients.
Thus, you don't get what you want for your tenner whilst somebody takes the 3 quid that would make it what you wanted.
If you use it you are the problem that makes my takeaway sub standard.
It is another scramble to the bottom.
How does a takeaway make margin when an app is taking 30%?
Simple.
Smaller portions and cheaper ingredients.
Thus, you don't get what you want for your tenner whilst somebody takes the 3 quid that would make it what you wanted.
If you use it you are the problem that makes my takeaway sub standard.
In terms of the additional 20% charge for delivery - some or most of that is passed onto the Customer (via delivery charges). the takeaway doesn't lose MORE money if the customer asks for delivery. They are still paying the 15% commission and takeaways generally have a GP margin of 40%-50%.
For me it is the simple aspect of a faceless marketing company making money for nothing, you can't argue with their policy and marketing decision or business idea, but the sad fact is these eateries are struggling enough as it is and it is our fault, we are so bloody lazy we have made it easy for these faceless companies to make hundreds of millions for doing very little other than a bunch of marketing, a good idea and some basic admin.
When really our restaurants need every penny they can make after the last few months, and we need to make sure they stay alive for outr benefit long term in terms of employment, variety, empty space etc.
So far be it from me to rant, but get off your bottom and go and pick up your takeaway when you order one, not just eat or anyone similar.
When really our restaurants need every penny they can make after the last few months, and we need to make sure they stay alive for outr benefit long term in terms of employment, variety, empty space etc.
So far be it from me to rant, but get off your bottom and go and pick up your takeaway when you order one, not just eat or anyone similar.
hyphen said:
Trophy Husband said:
How does a takeaway make margin when an app is taking 30%?
Volumes? A lot of them specify minimum order amount, normally anything from £10-20 but can be more. Not just the small ones - National chain 'German Donner Kebab' has a completely different price via these apps than in store.
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