Just Eat and Deliveroo taking an estimated €75.2m* in turnover from Irish restaurants, according to market analysis
– Separate poll reveals 77% of Irish dine-out consumers unaware of hefty charges restaurants and takeaways pay marketplaces
– More than 4 in 5 of Irish consumers think these fees are unfair
– With knowledge of fees, 9 in 10 diners would consider deleting online food delivery marketplace apps in favour of ordering directly from local takeaway
– 7 in 10 consumers that ordered food online more than once a week during lockdown believed they were supporting local restaurants
Dublin, September 2020 – New Amarach research, commissioned by Irish digital food-ordering solution Flipdish, reveals that more than three in four people (77%) are unaware that restaurants are charged up to 30% commission per order by online food delivery marketplaces such as Deliveroo and JustEat.
According to latest figures available, online food delivery marketplaces in Ireland in 2019 captured in excess of €75 million in fees from Irish restaurants and takeaways.
During the coronavirus pandemic, thousands of closed restaurants across Ireland pivoted from dine-in businesses to re-open as takeaway and delivery food businesses. Over 60% of the Irish population ordered food from restaurants and takeaways during lockdown.
Over half of all people (53%) who ordered meals from an online food delivery marketplace during Covid did so believing they would be supporting a local restaurant and were unaware that up to 30% of the value per order went to the marketplace app they ordered from, and not the restaurant itself. This number is even higher amongst weekly consumers of takeaway food, with 72% of people who ordered food online more than once a week during lockdown believing they were supporting local takeaways and restaurants.
Conor McCarthy, CEO and Co-Founder of Flipdish stated, “It’s very easy for people to go online and order from an online marketplace with the understanding that in addition to getting a delicious meal served to them at home, that they’re supporting a local business. But as the research shows, the majority of people in Ireland are unaware that these marketplaces can charge restaurants up to 30% commission per order.
“Armed with this knowledge we would hope to see a shift in people ordering directly from their local restaurants to actually support them and make sure they receive the maximum amount of their hard-earned revenue.” he added.
With a branded website, app or self-service kiosk, powered by Flipdish’s technology, restaurant owners can, within hours of signing up, directly accept digital orders without having to list on aggregator platforms, at a lower cost and with more control over the customer experience.
“A welcome shift in Ireland towards more conscientious decision-making when it comes to spending money locally and ordering directly from restaurants. Restaurants having control over their digital ordering system also allows them to control customer data – allowing them to directly target return customers with marketing promotions and loyalty programmes.”
Of those surveyed, more than 4 out of 5 (84%) people believe that the fees restaurants have to pay to online marketplaces are unfair. With the newfound knowledge of the fees restaurants face, almost 9 in 10 (89%) said they would order directly from the restaurant as opposed to using an online marketplace. 92% of people who order from an online marketplace more than once a week would now order directly from restaurants.
Ricki Capocci is the owner of 9th Lough, a popular family owned takeaway in Clondalkin established in 1980. Ricki and his team have made the shift away from working with aggregators to working solely with Flipdish and owning their own online presence. “I started working with the online marketplaces about ten years ago; but the longer I worked with them, the more expensive and difficult to deal with they became. I stopped working with them completely about three years ago and made the switch to having my own website and App that could take orders, powered by Flipdish. Since then, my bottom line has increased, and so has my customer base and loyalty. Online ordering delivers about 70% of my turnover now, why would I share that with an aggregator?”
Over 3 in 5 (61%) of people surveyed, order food online at least once a month. One in three people (33%) order takeaway once a week. More Dubs order food online, with one third (33%) ordering takeaways at least once per month compared to 13% of those in the Northwest.