Negotiating Better Rates with Delivery Aggregators

Negotiating Better Rates with Delivery Aggregators

Author

Taylor Brewser

two men sitting at a table talking to each other
two men sitting at a table talking to each other

Stuck in a contract? High-volume restaurants may have leverage. Here are tips on how to negotiate lower commission tiers—and when to walk away.

Did you know that not everyone pays 30%? Large national chains like McDonald's and Starbucks often negotiate rates as low as 15% (or even less) because of the sheer volume of orders they bring to the platform.

Finding Your Leverage

If you are a high-volume independent restaurant or a small restaurant group, you might have more power than you think. You don't have to accept the standard "rack rate."

  1. Know Your Data: Come to the negotiation table armed with your order volume statistics. Show them exactly how much revenue you generate for them.

  2. The "BATNA" Strategy: In negotiation, your power comes from your "Best Alternative to a Negotiated Agreement." If you have a strong commission-free ordering system already set up, you can credibly say, "We are moving our delivery exclusively to our own site unless you drop the rate."

  3. Exclusive Partnerships: Sometimes apps will lower fees if you agree to be exclusive to them. Warning: Be very careful with this; it limits your reach and puts all your eggs in one basket.

The Ultimate Negotiation

The best negotiation tactic is having the ability to walk away entirely. When you own your ordering system and your customer data, you hold all the cards. You can use the apps for marketing (acquiring new customers) and then move them to your lower-cost channel for repeat orders.

Learn: How to Slash Costs with a Commission-Free System

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