The vision of ChowNow is to ensure that small, local restaurants don’t go out of business because of high commission. They decided to do something about it by bringing ChowNow food delivery app on Android and iOS.
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what is ChowNow's business model .pdf
1. Wouldn’t it be awesome for restaurants if they can save themselves
from paying a hefty commission to third-party food ordering apps?
Well, ChowNow has answered your prayers! ChowNow, a food
ordering app is famous among restaurants, and rightly so. Unlike other
apps, ChowNow doesn’t receive a commission on orders; instead,
restaurants have to pay for the monthly service, and restaurants get a
dedicated marketing team to set up a website and an app, and
other features. ChowNow saves a huge chunk of profits for food
establishments as they don’t have to pay heavy commission to the
app. The app is hugely popular in the United States and was founded
by Christopher Webb and Eric Jaffe in 2011, with headquarters in Los
Angeles, California. For customers, the ChowNow app is just like
Grubhub or UberEats.
In the times of pandemic, when restaurants found it hard to survive
and provide the commission to delivery apps, ChowNow was
specially mentioned by Forbes in an article for helping restaurants to
make it through the crisis. The slogan of ChowNow is, “Helping local
restaurants thrive.”
If one is in the food business, having an association with DoorDash or
UberEats seems ubiquitous. These apps allow businesses to get in
touch with users and increase revenue. However, the problem for food
businesses with these apps is that they demand a high commission,
which becomes a problem for businesses, as a major chunk of profits
goes in commissions- anywhere between 20% to 40%.
what is ChowNow's business model
2. Business Model of ChowNow: The Work Flow
The vision of ChowNow is to ensure that small, local restaurants don’t
go out of business because of high commission. They decided to do
something about it by bringing ChowNow to reality. It is available on
Android and iOS.
The business model of ChowNow is quite simple; they have
eradicated any complexities so that businesses find it easy to use.
Since ChowNow doesn’t charge a commission per order, they offer a
paid monthly subscription. ChowNow pricing is transparent- It
charges restaurants $149/month and a one-time $399 setup fee per
location. When one opts for an annual plan, it costs $119/month, and
the setup fee goes down to $199. A 2-year plan costs $99 a month
and a setup fee of @199. Other services include comprehensive
training, an ongoing marketing strategy, an iPad to consolidate
orders, and 24/7 support.
ChowNow doesn’t offer a delivery service. Restaurants that don’t wish
to hire dedicated drivers are not out of luck- ChowNow has
partnered with delivery services, such as DoorDash, UberEats,
Postmates, etc., in different areas. The aim of ChowNow isn’t to give
these companies a run for their money but to make it affordable for
different restaurants- big or small.
3. How ChowNow App Works for Customers
ChowNow app is more or less the same for customers as any other
online food delivery app. When you download the ChowNow app,
you have to enter the location, and it shows the available restaurants
from where you can order. Add items in the cart and checkout. The
app is beneficial for users as not only they help small businesses by
using ChowNow app, but they also save themselves from the heavy
price, sue to the high commission on other apps; many restaurants
increase their prices on the app to compensate, which affects
customers as they have to pay from their pockets.
Market Stats and Revenue
Currently, market stats depict that ChowNow stands at #3 in food
online ordering system and delivery and is becoming a much sought-
after option for restaurants. The market share of ChowNow is 15.62%,
with more than 6854 companies using this software. ChowNow
makes $93.1 million a year.
4. Benefits of Choosing an Online Ordering System Like ChowNow
1. Increase Revenue
The first and foremost benefit of using ChowNow is the increase in
revenue. It’s not as expensive as other apps, and a flat monthly fee
means more money back in your restaurant. One can keep more of
the revenue from every online sale rather than having to shed it to
third-party vendors in the form of commission.
2. Capture Customer Data
Data is crucial; it drives the business. More information you get about
your customers, the better. Customer data helps you know the
preferences of your customers, which in turn helps you provide a
better experience to your users. It is a great way to devise marketing
strategies that actually work in your favor.
3. Increase Customer Engagement
Online platforms are a great way for your business to increase
customer engagement. More and more customers get to know about
a restaurant when there is a provision to order from it online.
Platforms like ChowNow act as your marketing agents that bring
more customers.
5. 4. Boost Customer Loyalty
Apps like ChowNow are a great way to boost customer loyalty.
Customers not only get to know about a business that’s listed on the
food ordering app, but they start trusting the business, which helps the
restaurant increase revenue and has a good reputation.
5. Uninterrupted Sales
It’s a dream of every restaurant to have uninterrupted sales, and that
comes to reality with an online ordering system. No matter if the
weather is harsh or there are some other reasons, your restaurants
never have any interruption when it comes to sales.
6. Electronic Invoicing
Receiving orders over the phone is outdated; also, it’s susceptible to
errors. An electronic invoice avoids any confusion, and the customer is
charged for what he/she has ordered. It offers utmost transparency
as the customer can see what he has been charged and how much
corresponds to every item.
6. 7. Real-time Metrics
Real-time metrics such as the number of orders completed, pending
orders, revenue generated, best-selling products, etc., are important
for any business, and this data is a great way to help restaurants
devise strategies to improve their business in the future.
8. Online Payment Gateway
Customers demand convenience and providing them a provision to
order food from the comfort of their homes and pay it through
multiple payment modes, such as debit cards, credit cards, e-wallets,
etc., is the ultimate convenience which is provided by online ordering
systems like ChowNow.
9. Tailored Experiences
Apps like ChowNow are known for providing a personalized
experience to customers. It takes care of the preferences of
customers and provides them with choices that are best suited for
them. This way, food establishments can take care of the likes and
dislikes of their customers.
7. Frequently Asked Questions (FAQs)
Que. How much does it cost to build an app like ChowNow?
Ans. To create a custom app like ChowNow, the budget is
around $15,000 to $ 25,000. The cost might vary depending on
your feature requirements. A ready made grocery app may cost
you approximately $10,000.
Que. How Much does ChowNow Make?
Ans. ChowNow’s revenue is $93.1 million a year.
Que. How much is ChowNow Delivery Fees?
Ans. The delivery fee is calculated before the user confirms the order.
Usually, it is $3 per pick up plus $3 per mile inclusive of the tip.
Que. Is ChowNow Reliable?
Ans. ChowNow is trusted by millions across the globe and is highly
reliable.
Que. Is it possible to develop an app like ChowNow?
Ans. Sure, we would love to transform your dream app into reality. At
Cerebrum Infotech, we offer customized products that are robust and
scalable. You can get it customized exactly how you want, and we
will deliver it to you at the earliest.
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