Podcast Summary: "Eight Simple Dos and Don'ts for Leveraging Third Party Platforms"
Podcast Information:
- Title: RESTAURANT STRATEGY
- Host/Author: Chip Klose
- Episode: Eight Simple Dos and Don'ts for Leveraging Third Party Platforms
- Release Date: December 19, 2024
Introduction
In the December 19, 2024 episode of the Restaurant Strategy podcast, host Chip Klose delves into the critical topic of optimizing third-party delivery platforms to enhance restaurant profitability. With over 25 years in the industry, Chip shares eight actionable dos and don'ts designed to help independent restaurant owners navigate platforms like UberEats, DoorDash, and GrubHub effectively. The episode is enriched with expert insights, including valuable input from Sterling Douglas, CEO of Chowli.
Promotional Announcements and Offers
Before diving into the main content, Chip promotes his book, Restaurant Marketing Mindset, offering listeners a chance to receive a free copy by covering only the shipping costs of $3.92. Additionally, recipients gain free access to his Restaurant Foundations program for 30 days, which complements the book's content with an online course.
Notable Quote:
"You get paid, the company gets paid and the guest gets their food quickly." — Chip Klose [03:30]
Eight Dos and Don'ts for Leveraging Third Party Platforms
1. Raise Your Prices by 30% on Third-Party Platforms
Do: Increase menu prices on platforms like UberEats and DoorDash by approximately 30% to offset the commission fees these services charge. This adjustment ensures that profitability is maintained despite the additional costs incurred from third-party partnerships.
Notable Quote:
"Just because you're listed on those sites doesn't mean that your profitability can suffer." — Chip Klose [05:00]
2. Do Not Promote Third-Party Platforms on Your Own Website
Don't: Avoid directing customers from your primary website to third-party delivery services. Your website should serve as the central hub that retains traffic and drives direct orders, thereby minimizing dependency on external platforms.
Notable Quote:
"Never, never, never give traffic away." — Chip Klose [05:45]
3. Enable Online Ordering Directly on Your Website
Do: Implement online ordering functionality on your website using POS systems like Toast, SpotOn, Square, or third-party solutions like Lunchbox. Direct online ordering allows you to capture customer data and generate revenue without intermediaries.
Notable Quote:
"If you offer takeout and delivery, you need to be able to capture that on your website." — Chip Klose [06:00]
4. Use High-Quality Photos for Each Menu Item
Do: Ensure that every item available for delivery or online ordering has a corresponding high-quality photograph. Visual appeal significantly influences customer choices and enhances the overall ordering experience.
Notable Quote:
"Make sure every single item has pictures and they got to be good pictures." — Chip Klose [06:36]
5. Feature Popular and Profitable Items Prominently
Do: Create a featured section on both your website and third-party platforms highlighting your most popular, profitable, and signature dishes. This strategy guides customers towards items that not only represent your brand well but also maximize your margins.
Notable Quote:
"Show them what you're really good at. Lots of other people ordered these things." — Chip Klose [07:15]
6. Focus on Conversion with Stuffers and Customer Engagement Tools
Do: Implement conversion tactics such as stuffing delivery orders with branded postcards offering discounts for direct orders. Additionally, leverage tools like Ovation to gather customer feedback and encourage reviews, transforming third-party customers into loyal patrons.
Notable Quote:
"Anybody who orders from you via Uber Eats is not your customer. They are an Uber Eats customer." — Chip Klose [07:45]
7. Leverage Last Mile Delivery Options
Do: Utilize last mile delivery services offered by platforms like DoorDash, which allow you to offer delivery directly through your website. This option provides customers with the convenience of home delivery while maintaining control over the delivery experience and costs.
Notable Quote:
"It's a powerful tool to generate more revenue." — Chip Klose [09:00]
8. Max Out Promotions to Enhance Visibility
Do: Invest in higher commission tiers to ensure your restaurant appears at the top of search results on third-party platforms. High visibility increases the likelihood of orders, making it a worthwhile expenditure to drive sales through these channels.
Notable Quote:
"Your goal is to get a lot of orders. The way you get a lot of orders is by being at the top of the list." — Chip Klose [09:30]
Expert Insights from Sterling Douglas
At 06:36, Sterling Douglas, CEO of Chowli, shares valuable perspectives on maximizing the return on time rather than just return on investment (ROI). Sterling emphasizes the importance of efficient time management for smaller operators, highlighting how optimizing Google listings can significantly impact restaurant visibility and customer acquisition.
Notable Quote:
"Your time is actually your biggest resource. Making sure that you're spending time on the things that are getting maximum impact is critical." — Sterling Douglas [06:36]
Sterling further explains the nuances of maintaining an optimized online presence, noting that comprehensive and up-to-date information on platforms like Google can enhance a restaurant's chances of appearing in relevant search results, thereby attracting more customers.
Conclusion and Final Reminders
As the episode wraps up, Chip reiterates the eight dos and don'ts, ensuring listeners have a clear takeaway to implement in their operations. He also reminds listeners about the opportunity to receive his book and access the Restaurant Foundations program, encouraging them to leverage these resources for further growth and profitability.
Notable Quote:
"Remember the first thing I said was that we raised our prices to match the commission fees we pay. So we are never, never going to lose out on profitability again." — Chip Klose [10:00]
Key Takeaways:
- Adjust Pricing Strategically: Ensure menu prices on third-party platforms reflect the commissions to maintain profitability.
- Centralize Traffic: Keep all promotional efforts focused on your primary website to retain customer engagement.
- Facilitate Direct Orders: Provide robust online ordering options directly through your website.
- Enhance Visual Appeal: Use high-quality images for all menu items to attract and retain customers.
- Highlight Best Sellers: Feature top-performing items prominently to guide customer choices.
- Convert and Engage: Implement conversion strategies to turn third-party customers into loyal patrons.
- Optimize Delivery Options: Utilize last mile delivery services to offer flexibility and convenience.
- Maximize Visibility: Invest in premium placement on third-party platforms to increase order volume.
By adhering to these strategies, restaurant owners can effectively leverage third-party delivery platforms to boost profitability while maintaining control over their brand and customer relationships.
Additional Resources:
- Book Giveaway: Follow the link in the show notes to receive Restaurant Marketing Mindset by Chip Klose.
- Restaurant Foundations Program: Access a free 30-day membership with the book offer.
- Ovation Platform: Enhance customer feedback and reviews via ovationup.com.
Connect with Chip Klose: For more insights and strategies, visit restaurantstrategypodcast.com/schedule to schedule a call with Chip or his team.
Thank you for tuning into this episode of Restaurant Strategy. Implement these eight dos and don'ts to optimize your use of third-party delivery platforms and drive your restaurant's profitability to new heights.