Just Eat Takeaway, known in the Netherlands under Take-Awy.nl, has once again increased commissions for home delivery restaurants. From July 24, 2022, restaurants will pay not 13 but 14 percent of gross sales to the well-known delivery service (Emerce, 2022). Earlier, the platform already raised the processing fee from 0.19 euros to 0.21 euros per order. Parent company Just Eat Takeaway is also increasing commissions abroad, except in the United Kingdom and the United States. These are increases averaging 1 percent of commission. What are the consequences of this price increase? And as a restaurant owner, how can you best deal with this?
Increase in commission causes much misunderstanding
According to Gijs Weterings, director of the Netherlands at Take-Awy, increases in commission are necessary because of ongoing inflation and higher operating costs. Nevertheless, many entrepreneurs are furious about the announced price increases. This is because the margin for the catering industry is getting smaller and smaller. And that while Just Eat Takeaway saw sales grow by 33 percent to 5.3 billion euros in 2021 (Foodclicks, 2022). This creates a lot of misunderstanding. Small business owners are especially hard hit by this increase. The Association of Professional Fryers (ProFri) is calling on consumers to stop ordering through Take-Awy altogether and instead order directly from the restaurant (Misset Horeca, 2022).
Consequences of Take-Awy.nl’s price increase
Now that Take-Awy.com and parent company Just Eat Takeaway have raised the commission, we see three possible consequences for restaurants doing meal delivery: consumers lose out, a boycott ensues, or restaurant owners switch to another delivery service.
1. Consumer is the dupe
A first consequence is that the consumer ends up bearing the brunt of the commission increase. Some restaurants will pass the price increase on to the customer. This may be in the form of additional delivery fees, or it may be an increase in the price of the dishes themselves. Because larger organizations often pay less commission, they can more easily afford the increase. Small restaurants pay more commission and cannot afford this price increase. So a price increase is necessary to keep their heads above water. Another possible consequence is compensation on the quality of the dishes. This means cutting back on the quality or quantity of ingredients while offering the dish to the consumer at the same price. In this case, too, the consumer ultimately suffers.
2. Boycott by commission increase Take-Awy.nl
Restaurant owners feel powerless because of the increase in commissions. They wonder if this increase will happen again a year from now. A large-scale boycott is therefore not an unthinkable scenario. Erwin Braak of The Lunchbox in Enschede quit Take-Awy.nl even before the commission increase (De Ondernemer, 2022). “The commission was way too high for me even then: 14 percent for Take-Awy, 30 percent in purchases. Almost half of it already goes away. You have to deliver so much for that to be profitable. Then I’d rather not deliver at all.”
3. Alternative delivery service
Delivery services have been popping up like mushrooms in recent years. For example, UberEats and Deliveroo are slowly starting to gain market share and popularity. They target restaurants that do not have their own delivery service. In theory, a possible reaction to the commission increase would be for restaurant owners to leave Take-Awy.nl and switch to one of the competitors. But with a 90% market share in the Netherlands, Take-Awy.nl is simply too powerful and it is unwise for restaurants to make this decision.
Our advice to restaurant owners
We understand the uncertainty of restaurant owners. Still, our advice is not to leave Take-Awy.nl or any other part of Just Eat Takeaway right away. We are happy to explain why you should not.
Consumers won’t leave Take-Awy.nl
Despite price increases being a hot topic among restaurant owners, consumers are often unaware of them. You will have followed the developments closely but for your customers it is just one of the many news items they see passing by every day. Probably many customers do not even know about the existence of the website. They are hungry and want to order food quickly. So a huge target group of potential customers falls away when you can no longer be found on Take-Awy.nl. Customers are more likely to simply look for another restaurant that can be found in the Take-Awy.nl app. If they have a good experience there, you have lost them as a regular customer. And of course we don’t want that!
Don’t underestimate Take-Awy.nl’s marketing
When you use Take-Awy.nl, you get more than just a piece of technology. In fact, you not only pay for the administration of your orders, but also for Take-Awy.nl’s marketing. The service processes more than 1 million orders a month (Take-Awy, 2022). Every time a visitor uses the app or website, a company name may pass by. Of course, users can navigate to your restaurant in a targeted way, but it is also possible that they look around the many options and discover your restaurant by chance. Don’t forget the advertisements on TV and posters in public spaces, either. Take-Awy.co.uk has a large budget to promote their service. As an affiliated restaurant, you can benefit from this as well. When you leave Take-Awy.nl, you can no longer use these benefits. Keep in mind the two target groups for your delivery service: your regular customers and the exploratory visitors you can get in through Take-Awy.nl. When you leave Take-Awy.nl, you lose the second group of potential customers. Our advice is therefore not to leave Take-Awy.nl, despite the commission increase.
Get a good website with delivery service
Do you still want to be less dependent on Take-Awy.nl? Then make sure you have a professional website with good online findability. CashDesk can build this website for you and can also take care of the marketing. Some of your customers will then order through your own website. When the right marketing tools are used, it is possible to receive 30-70% of your orders through your own website. An average delivery restaurant will quickly save €10,000 per year! For this it is necessary that your website is as user friendly as Take-Awy.nl. CashDesk is happy to help you with this. Please contact us to discuss the possibilities.
https://www.telegraaf.nl/financieel/1647897505/pijn-bij-restaurants-om-hogere-betaling-aan-thuisbezorgd-nl-verdienen-geen-droog-brood-meer
2. https://www.missethoreca.nl/382539/profri-roept-consumenten-op-thuisbezorgd-links-te-laten-liggen
3. https://www.deondernemer.nl/actueel/horeca/thuisbezorgd-verhogen-commissie-ondernemers-stoppen-bezorging~4013756
4. https://www.thuisbezorgd.nl/wie-zijn-we
5. https://www.foodclicks.nl/nieuws/just-eat-takeaway-ziet-omzet-fors-toenemen/
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