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Why 2025 Is the Year of First-Party Restaurant Technology


Restaurant Technology

Key Takeaways:

  • First-party delivery platforms are becoming a leading choice as restaurants seek to increase profits and own customer relationships

  • Restaurants can save 15-35% on commissions by switching from third-party to first-party delivery solutions

  • The hospitality industry's successful shift away from third-party booking platforms provides a proven blueprint for restaurants

  • Direct ordering platforms offer superior data insights, customer relationship management, and brand control

  • Technology investment in first-party solutions is becoming essential for long-term restaurant sustainability



While third-party delivery apps have dominated the digital landscape for years, a significant shift is occurring as restaurants seek greater control over their delivery operations, customer relationships, and profit margins.


The Limitations with Third-Party Platforms for Restaurants


Recent industry data reveals limitations that restaurants face using third-party delivery providers. According to a recent article by Restaurant Business Online the core issues include:


  • High commission rates (15-30% per order)

  • Loss of direct customer relationships

  • Pressure to offer steep discounts

  • Limited access to customer data

  • Decreasing profit margins


The Rise of First-Party Restaurant Technology Solutions


Forward-thinking restaurants are increasingly investing in first-party delivery solutions, and here's why this shift matters for your business:


  1. Complete Control Over Customer Experience

- Direct communication with customers

- Branded delivery experience

- Personalized service options

- Quality control from kitchen to doorstep


  1. Better Economics

- No third-party commissions

- Higher profit margins

- Controlled pricing strategy

- Reduced promotional costs


  1. Valuable Customer Data

- Direct access to ordering patterns

- Customer preference insights

- Targeted marketing opportunities

- Building long-term relationships


Learning from Other Industries


The hospitality industry provides a valuable blueprint for restaurants. Airlines and hotels successfully regained control from online travel agencies by:

  • Offering better prices on direct channels

  • Creating compelling loyalty programs

  • Providing exclusive benefits

  • Delivering superior customer service


Flat Fixed Fee

How to Successfully Implement First-Party Delivery


Step 1: Choose the Right Technology Partner

Select a technology solution that offers:

- Seamless ordering experience

- Robust delivery management

- Customer data analytics

- Marketing automation tools


Step 2: Develop Your Strategy

Create a comprehensive plan that includes:

- Competitive pricing strategy

- Customer acquisition approach

- Loyalty program design

- Staff training procedures


Step 3: Execute and Optimize

Focus on:

- Consistent service quality

- Regular performance monitoring

- Customer feedback integration

- Continuous system improvement


The Sauce Advantage: Your Partner in Online Ordering & Delivery


As a dedicated first-party restaurant technology solution, Sauce provides:

  • Complete ownership of customer relationships

  • Higher profit margins on every order

  • Advanced data analytics and insights

  • Seamless delivery management and live customer support for your diners

  • Integrated loyalty programs

  • Custom-branded experience


Cut Delivery Fees To Zero

Making the Switch to First-Party Technology


The transition to first-party delivery might seem daunting, but with the right technology partner, it's a strategic move that positions your restaurant for long-term success. As more restaurants recognize the advantages of controlling their digital destiny, first-party solutions are becoming not just an alternative, but a necessity.


Ready to take control of your delivery future? Contact Sauce today to learn how our first-party restaurant technology solution can transform your digital operations and boost your bottom line.


Get started with Sauce: Schedule a demo today and discover how our first-party delivery platform can help you increase profits, build customer loyalty, and take control of your digital presence.


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Frequently Asked Questions


How does first-party delivery impact restaurant profitability?

First-party delivery eliminates third-party commissions (typically 15-30%), allowing restaurants to retain more profit per order while maintaining control over pricing and promotions.


What advantages does first-party technology offer over third-party platforms?

A: First-party solutions provide direct customer relationships, complete data ownership, higher margins, and the ability to create a branded delivery experience without intermediaries.


How can restaurants compete with the convenience of third-party apps?

By offering better prices, exclusive deals, superior service, and loyalty rewards through their first-party platform, restaurants can create compelling reasons for customers to order directly.


What should restaurants look for in a first-party technology solution?

Key features include user-friendly ordering interfaces, robust delivery management, customer data analytics, marketing tools, and seamless integration with existing restaurant systems.






 
 
 

1 Comment


I think the trend of direct delivery is actually beneficial for That's Not My Neighbor restaurants in the long run, especially in terms of retaining customer data and increasing profits. Previously, when ordering through third-party apps, I often found high fees and little brand engagement. If a restaurant can launch its own platform with good prices and a great loyalty program, I would definitely prioritize direct ordering.

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