British technology company Preoday has launched ‘My Order App’, giving takeaway owners the ability to create their own home delivery app for free.
The app is free to use for consumers and restaurants, with no set-up, transaction or commission fees. My Order App is available to restaurants in the UK, Germany, Austria, France and Ireland, with roll-out to other markets due later in the year.
UK consumers are reported to spend £30bn on takeaways each year, a number that is growing rapidly. Mobile is forecast to become the most popular way to order by 2015. But currently, most mobile orders are placed via third party apps and portals such as Just Eat, meaning restaurateurs have to be pay commission fees that eat into their margins, even for repeat customers who already know the restaurant well. Such ‘middlemen’ also remove customer information, making it more difficult for restaurants to communicate with and market to their customers, Preoday claims.
Preoday’s My Order App is claimed to put the restaurant back in control. A restaurant simply loads up their menu and artwork at the Preoday website to generate their own-brand mobile app, sets themselves up to receive payments and is ready to take orders within 30 minutes. The orders are received by the restaurant via any internet connected device – such as a laptop or tablet or ePoS system, meaning there are no costly set up fees or hardware to purchase. Preoday integrates the payment system for the restaurant, using Stripe, a large global payment processor. Again, no additional fees are charged for this service. Restaurants signing up before the end of August will also benefit from free additional support from the Preoday marketing and tech team.
Restaurants using Preoday can opt to upgrade to premium packages that allow them to generate more income from customers – for example via features such as ‘Know Your Customer’ or ‘Independent Branding’. These start from as little as £20/month and help put the restaurant back in control of their customers, the company said.
To understand the market opportunity, Preoday commissioned independent research company Red Brick to explore the views of 400 takeaway owners using the UK’s largest platform, Just Eat. The study found:
- 80% see online orders as increasingly important to their business
- 73% say they would like to have their own mobile ordering app
- The top three reasons for restaurant owners developing their own app are: don’t know how to go about it; prohibitive cost; lack of technology skills
- 66% say they feel Just Eat’s transaction fees are unfair and 53% would like to stop using Just Eat if a simpler and more cost effective alternative was available
- 52% say they’ve lost significant income because regular customers default to Just Eat
- 49% say Just Eat makes it harder to build direct customer relationships
- 42% say the Just Eat brand is inconsistent with their own identity and values
- Just Eat’s minimum 10% transaction fee is costing restaurateurs £725 per month on average
Preoday said that, in the past week, 39 Just Eat restaurants have signed up to Preoday, enabling them to avoid these transaction fees and have direct contact with their customers.
Andrew White, CEO and Founder of Preoday, said: “We want to put the takeaway owner back in control of his customer relationships. The digital age has seen high profile middlemen take ownership and charge restaurants huge fees for connecting them with customers, most of whom they already have. It is our belief that mobile gives restaurateurs the chance to regain control of this relationship and offer the personal service that generates loyalty and helps their business grow. Mobile applications are the most viable way for takeaways to embrace the mobile age, a one-time opportunity that, if incorrectly managed, could be fatal for their business.”
Florent Regent, Head Chef and Proprietor at Brasserie Toulouse Lautrec, a London restaurant that is already using Preoday’s My Order App, said, “Restaurants’ top priority is to retain their loyal customers, It is for this reason that we need to own our customer relationships and ensure the quality service we provide with our food, is also provided in the online experience. Preoday gives us the tools to manage this relationship and grow our own brands. Prior to this we were restrained by middlemen, who hurt us more the quicker we grew.”