Why 2025 Is the Year of First-Party Restaurant Technology
- Sauce Restaurant Expert Team
- Jan 8
- 3 min read
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:
Complete Control Over Customer Experience
- Direct communication with customers
- Branded delivery experience
- Personalized service options
- Quality control from kitchen to doorstep
Better Economics
- No third-party commissions
- Higher profit margins
- Controlled pricing strategy
- Reduced promotional costs
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
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
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.
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.