Pointed out that Google and food delivery service are using'advertising 'to rob customers from local restaurants
The food delivery service, where drivers order food from restaurants and fast food restaurants online or over the phone, is a great convenience for those who want to stay home. However, Travis Stoliker, owner of a small restaurant in the city of
How Google, DoorDash, & Grubhub Conspire To Screw Local Restaurants | Saddleback BBQ
https://www.saddlebackbbq.com/how-google-doordash-grubhub-conspire-screw-local-restaurants
Stoliker, who runs a barbecue restaurant called 'Saddleback BBQ' in Lansing, said, 'Many people know that running a restaurant is difficult, but two of the world's largest companies are plotting to steal your customers. If you are planning a restaurant, running a restaurant will be more difficult. ” Learn how Google and a major food delivery service are stealing customers from local restaurants, with examples of what Saddleback BBQ is facing.
`` Many consumers don't understand, but when you order a major food delivery service like Grubhub or DoorDash, you don't just pay the shipping and service fees and the tip to the driver, '' Stoliker said. We restaurant owners also pay for it. ' Although it is not publicly talked about, 15-35% of the cooking price is collected by the food delivery service. Stoliker points out that this fee has to be borne by the restaurant side separately from the shipping fee, service fee, tip etc paid by the customer, which is a considerable pain for the restaurant industry with a low profit margin.
The reason why the restaurant side drinks such a fee system is because the food delivery service collects this fee under the name of 'advertising expenses'. The huge platform and large number of customers that a major food delivery service has is attractive to restaurants as well. 'By registering for a major food delivery service by paying for advertising, we can cultivate new customers.' If you whisper, the restaurant owners will drink the conditions.
Even if the payment burden is large, it seems that the profits of the restaurant side are not small if they can develop new customers. However, Stoliker pointed out, `` I think this is true if it is true, but unfortunately it is not true at all '', claiming DoorDash and Grubhub are colluding with Google to rob the restaurant customer. I will.
For example, let's say people in Lansing who have a Saddleback BBQ run by Stoliker do a Google search for 'Saddleback BBQ Lansing' to get directions to Saddleback BBQ. If you look at the image below, the official site of Saddleback BBQ is certainly displayed at the top of the search results, but the panel with photos and maps on the right side is outstanding. The panel on the right is not the Saddleback BBQ official website, but the advertisement that DoorDash paid to Google and posted. Click this panel ...
Instead of jumping straight to Doordash's Saddleback BBQ order form, you'll be redirected to a page with a list of all the stores that offer'BBQ 'at Lansing. In addition, another restaurant called 'Applebees' is displayed at the top of the list.
'In summary, DoorDash paid Google advertising to steal customers searching for the restaurant name'Saddleback BBQ 'and redirecting them to their page,' Stoliker said. Rather than the point where the advertisement is conspicuous on the screen, he pointed out that the system that may not lead to an order for Saddleback BBQ even if clicking the advertisement is troublesome.
Customers who search for 'Saddleback BBQ' will be directed to the food delivery service platform and will not pay $ 1 for Saddleback BBQ if they order at another restaurant. On the other hand, if the customer makes another order by searching for 'Saddleback BBQ' again on DoorDash's platform, Saddleback BBQ will have to pay 'advertising fees' to DoorDash. This advertisement is not displayed in search words such as 'BBQ in Lansing', DoorDash says that it uses its own restaurant name for its own profit.
Grubhub is doing the same thing, for example, if you search for 'Saddleback BBQ Hours', ads that direct you to the Grubhub platform will be displayed instead of DoorDash.
Of course, the problem between Saddleback BBQ and food delivery services is strictly contractual, and it is certain that Saddleback BBQ has contracted with DoorDash and Grubhub in anticipation of the 'new customer acquisition' profit. 'I want to be clear that paying advertising for food delivery services isn't the problem. The problem is that food delivery services actively use our brand name to find us. We are advertising our platform to existing customers, ”said Stoliker.
Stoliker contacted Door Dash and Grubhub representatives and urged them to stop the practice of using the Saddleback BBQ name to direct them to their platform. Then, it seems that the advertisement will not be displayed when searching with 'Saddleback BBQ' for a while, but it is said that it has finally revived.
Since Saddleback BBQ also accepts deliveries on the official website, even if you terminate the contract with DoorDash or Grubhub, users who want to order from Saddleback BBQ from the beginning can ask for delivery through the official website. 'The question is whether canceling the deal really stops them from stealing customers looking for'Saddleback BBQ 'and directing them to their competitors. I don't know,' Stoliker said. ..
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