For delivery applications, convenience takes the cake

The proliferation of food delivery aggregators during the pandemic has given rise to the new practice of ordering, although it is not really necessary.

When something from a fast food burger to a steak dinner can be dropped off at the door in under an hour, it’s almost too easy to skip cooking and cleaning and relax before arrival of a ready-to-eat dinner.

It’s the convenience factor – and ease of ordering – that drives 65% of those who use third-party aggregators to look for an app instead of heading to the kitchen, according to data from the November edition of PYMNTS of the. Order To Eat Tracker, produced in collaboration with Paytronix.

The new report takes an in-depth look at what drives people to use aggregators for quick service restaurants (QSRs) and how restaurants can still maintain and strengthen customer loyalty.

Download the report: How Taco Bell Works To Stay In Control Of Customer Relationships As Third-Party Aggregators Bloom

With convenience comes a cost as well, and that’s the problem with third-party aggregators – the expense. Fees charged to restaurants reduce profits, and fees charged to consumers can make an inexpensive meal suddenly a little expensive.

On average, people pay 12% more when ordering through an aggregator than if they had called the restaurant directly.

The fees don’t completely stop people from ordering, with 17% of those surveyed having used an aggregator once in the past three months. The average Uber Eats user orders five times a month.

However, 53% of those surveyed said they chose not to use an aggregator in the past 15 months due to the extra expense.

See also: Deep Dive: Why Aggregators Are Both a Saving Grace and a Sacrifice for QSRs

Restaurants operate with profit margins of 7% to 22% – and taking into account the commissions and fees of third-party aggregators, those margins can be fully absorbed. While there have been attempts to legislate on commission caps, denials from app operators have left the problem in limbo.

To recover part of the costs, some restaurants mark up their prices on third-party aggregation applications. Chick-fil-A, for example, charged an average of 30% more for aggregator orders than takeout orders placed on its app, while McDonald’s and Starbucks hovered around 20%.

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NEW PYMNTS DATA: AUTHENTICATION OF IDENTITIES IN THE DIGITAL ECONOMY – DECEMBER 2021

On:More than half of American consumers think biometric authentication methods are faster, more convenient, and more reliable than passwords or PINs, so why are less than 10% using them? PYMNTS, working with Mitek, surveyed more than 2,200 consumers to better define this perception gap from usage and identify ways in which businesses can increase usage.

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