ChowNow launches Order Better Network

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Diving letter:

  • Online ordering platform ChowNow on Tuesday “Order Better Network” launched, a solution that connects restaurants to more than a dozen channels for delivery and take-away orders. Brands on the platform include Google, OpenTable, Yelp, and a few more.
  • The Order Better Network is helping restaurants set up digital storefronts on these social platforms so diners can browse, order, and checkout without leaving. The new offer demonstrably increases online sales by an average of 30%.
  • Triple-digit growth in delivery and pick-up sales in full-service restaurants has forced more and more restaurants to rely on digital orders. Independent restaurants that have smaller marketing budgets to pay for placement in third-party apps could benefit from ChowNow’s new offering.

Dive Insight:

This rollout could discourage low-margin independents from using third-party delivery platforms that charge an average of 30% commission fees. ChowNow offers its customers a commission-free model Over 20,000 restaurant partners. Last April, ChowNow partnered with Instagram to add “Order Food” buttons to stories and profiles.

According to a blog post by the company, “The Order Better Network casts a wide web that effectively makes your restaurant be everywhere at the same time” and reaches diners ready to order. ChowNow said it will keep adding new partners to the network, but the current list already offers wide audience reach. Before the pandemic, OpenTable sat more than 31 million guests every monthwhile Yelp has 31 million unique devices with its app.

“ChowNow’s mission for over a decade has been making independent restaurants thrive,” said Chownow Co-Founder and CEO Chris Webb said in a statement. “The Order Better Network offers tremendous growth opportunities. For the first time, restaurants can easily and efficiently expand their online presence across a variety of popular branded channels and to millions of new customers.”

But third-party platforms also offer competitive access to restaurants. Half of US consumers have ordered at least once from a large third-party supplier. based on data from August 2021. DoorDash, which has the largest market share among delivery platforms, has more than 20 million active consumers worldwide in a given month.

DoorDash, Grubhub, and Uber Eats have all added new features to target smaller restaurants and compete with competing online ordering platforms as well. These tools include tiered pricing structures as well as marketing and technology support. Grubhub launched a new toolkit last year that allows restaurant partners to add online orders to their native channels without charging a marketing fee for the service.

ChowNow and similar companies such as CaterCow, Order code and Lunch box are growing, while restaurants charge low or no delivery fees. ChowNow’s partnership with major websites could accelerate that growth, especially there Demand for delivery remains high and third-party commission fees weigh on e-restaurant margins.