First off: let’s address the elephant in the room.
When you discount your product aggressively over the long term, there is a belief that your customers will either perceive your product as overpriced to cover the difference or cheap. We respectfully disagree.
Example A: Uber and their $17 billion (yes, billion with a B) valuation have been losing money on many of their rides. People don’t see their product as cheap. Now, your restaurant may not be valued at $17 billion, but give your customers a little credit. When they see a great value, they will embrace it.
Smart incentives reward loyal customers.
You don’t have to go so far as to make your product unprofitable in order to gain market share. Your goal is to acquire smart, loyal customers who will return frequently.
If it takes a discount to reclaim your customers from the large commissioned portals, so be it. A discount given directly to the customer will always trump commission given to an expensive online food ordering portal.
If you don’t have any online food ordering, discounts are a great way to make your delivery process more accurate and efficient. During peak hours, you don’t have time to answer your phones. The restaurant is often loud, orders and questions can be slow and difficult to hear. This leads to inaccurate orders and lost customers. Simply put, if you aren’t efficient, you are losing money.
Munch will keep you efficient and bring you more customers. What more could a restaurant want?