At Foundation we recently completed a web design project for a cafe and takeaway business who were tired of paying high costs, and wanted a Just Eat alternative. I’m sure that they’re not alone in feeling this way.
I know to a lot of business owners it seems like the easy and logical solution to sign up for Just Eat, or Hungry House. That’s totally understandable considering the large user base of these companies. However, it may soon become apparent that it’s not the brilliant deal it first seems.
At the time of writing Just Eat charge £699 +VAT as a sign up fee, followed by 14% commission on all orders placed via their app or website. So straight away you’re paying £699 + VAT to be listed directly next to your competition! Then, on top of quite a hefty up front bill you then get charged a whopping 14% commission on all orders. Now yes, Just Eat will say they reinvest this commission into marketing and advertising to grow their customer base, but even so it’s still a big amount off your own bottom line. With your own Just Eat alternative you could lower that commission to 1.4%. It’s hard to argue with savings like that.
Update – 05/03/2018
The affects Just Eat can have on takeaways can be seen here: Owners slam Just Eat for ‘crippling’ their takeaway business
A personal Just Eat alternative website would not have had crippling costs that can result in a business suffering.
The reason you pay the setup fee with Just Eat is that you don’t actually have control of your own menu or prices. You have to provide them through to Just Eat via email and they will then replicate this on their system. In theory this is great, you don’t have to worry about anything technical, just pop them an email and it’s all taken care of for you. In reality it’s not so great. When speaking to Nathan from Julie’s Kitchen, before starting work on their new Just Eat alternative, I found out that it often takes a couple of weeks for these menu changes to be applied. Not exactly ideal if you need to increase or decrease prices, or remove an item you no longer sell, at short notice.
Although being listed on a widely used app is a great way for people to find you, as stated before it also puts you in direct competition with those directly around you. By having your own online Just Eat alternative you have the ability to become THE go-to takeaway for anyone searching for local takeaways NOT using the Just Eat app. There are far more people not using Just Eat to order their food than their are using it.
Your own fully branded, mobile friendly, website for customers to order food directly from you.
If you already have your business listed on Just Eat then there really isn’t much reason to remove it from there, after all you’ve paid the setup cost and hopefully you’re one of the top restaurants listed on the app. There isn’t however anything to stop you setting up your own Just Eat alternative that you can redirect your customers towards so they can get a small discount over ordering via Just Eat. Over time you can move most of your regular custom over to your own website and reap the savings of paying 90% less in commission.
I personally think it’s a pretty straight forward choice. Why pay the middle man for something you can easily do yourself? If you think that you could benefit from your own Just Eat alternative then please feel free to get in touch, and see how Foundation can help set you free of high commission rates.