TL;DR
Third-party delivery apps were collecting 29.5% on 71% of our orders: $11,200 every single month. After switching to direct ordering through Outbites, our net margin jumped from 8% to 22%, we built a list of 2,400+ direct customer contacts, and monthly net profit more than doubled. The revenue stayed roughly the same. We just stopped giving so much of it away.
It was a Tuesday in November when I sat down to review our monthly profit-and-loss. We had just wrapped our best October on record: $41,800 in revenue. I expected to feel good about the numbers. Instead, I sat there staring at a net profit of $3,300. Eight percent. After two years of grinding, building a loyal neighborhood following, perfecting our recipes, and working 60-hour weeks, we kept eight cents of every dollar we made. Something was badly wrong.
The Wake-Up Call: $11,200 in Monthly Commissions
When I dug into the line items, I found it. A single expense entry totaling $11,200, paid out to DoorDash, Uber Eats, and Grubhub. We had been on all three platforms for almost two years. In the beginning it felt like found money: customers discovering us, orders flowing in, zero marketing budget required. But what I had never done was the actual math. That October, 71% of our revenue came through third-party platforms, and we were paying a blended commission of 29.5% on every single order.
The Math That Changed Everything
I pulled out a spreadsheet and did the math I should have done two years earlier. At $41,000 per month and a 29.5% commission rate, we were handing over roughly $12,095 every single month ($145,140 per year) to platforms that owned our customer relationships, our reviews, and our data. When a customer ordered through DoorDash, DoorDash owned that customer. We could not email them. We could not run a birthday promotion. We could not send a text on a slow Tuesday to drive traffic. They ordered our food, in our kitchen, prepared by our staff. They were a platform's customer.
It Was Not Just About the Money
The financial hit was actually the smaller problem. The bigger issue was data. In two years of third-party delivery, we had served thousands of customers, yet owned zero of their contact information. DoorDash had their emails. Uber Eats had their order history. Grubhub knew their preferences. We had nothing but bank deposits and a tablet in our kitchen. When those platforms raised commissions (and they did, twice) we had no fallback position. We could not reach our own customers to let them know we were offering direct ordering. We were entirely at the mercy of an algorithm we did not control and a fee structure we did not set.
What We Switched To
A friend who runs a food truck mentioned Outbites, a platform built specifically for independent restaurants to take direct orders without paying commissions. The model was simple: $1 per fulfilled order, no monthly platform fee, and we own every customer relationship from day one. I was skeptical. We had tried to push customers to a direct website before and gotten almost no traction. But Outbites was different. It came with built-in marketing tools that made transitioning customers from third-party apps actually work, not just theoretically possible.
A Branded Ordering Page That Is Fully Ours
Within a week, we had a fully branded ordering site: our name, our logo, our colors, our menu. Customers could order directly from us, skip the middleman, and avoid the inflated menu prices the platforms require us to charge. We drove traffic to it with QR codes on every table, a link in our Instagram bio, and a small sticker on our takeout bags offering $2 off the first direct order. Adoption was faster than I expected.
Every Customer Contact, From the Very First Order
The moment a customer placed their first direct order, their email and phone number were ours, with full opt-in consent. After one month, we had 400 direct contacts. After three months, 1,200. After six months, 2,400. These are people we can reach anytime, with any promotion we choose. No algorithm decides whether they see our message. No platform owns the relationship between us and the people who eat our food.
Automated Marketing That Runs Itself
Outbites includes re-marketing automations we configured once and never touched again. A win-back message goes to any customer who has not ordered in 21 days. A birthday offer goes out the week of their birthday. We set up a loyalty program that rewards every fifth order. In six months, our repeat order rate climbed from 23% to 41%, without a single additional hour of marketing work from our team.
The Results After Six Months
I want to be specific because I know how these numbers can sound. We did not overnight replace all third-party volume. In month one, direct orders were 14% of total revenue. By month three they were 34%. By month six, direct orders were 52% of all revenue. Monthly commission expense dropped from $11,200 to $1,800. Our average monthly net profit climbed from $3,300 to $7,200. Margin went from 8% to nearly 22%. We did not grow our revenue significantly. We just stopped bleeding it.
“We did not grow our revenue. We just stopped giving so much of it away.”
— Katie Carswell, Account & Social Media Manager at Outbites
What I Wish I Had Known Sooner
- Calculate your real commission cost before assuming the discovery value justifies it. The math almost never works in your favor.
- Start collecting direct customer contacts even before you are ready to market to them. The list is the asset.
- Do not try to pull customers off platforms cold. Offer a meaningful incentive for their first direct order.
- Set up re-marketing automations before you have a large list. They work from the very first contact.
- You do not need to leave third-party apps entirely, but you need a direct channel so you are never held hostage by a commission increase.
- Every dollar invested in building your own customer list compounds over time. Every dollar paid in commissions disappears forever.
If you are reading this as a restaurant owner who knows the commission math is not working but has not found a clear path forward: this is it. Outbites is not magic. It is a tool that makes direct ordering viable and provides the marketing infrastructure to make the transition actually stick. The hard work is still yours. Keeping more of what you earn? That part gets significantly easier.
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Start Your Free TrialKatie Carswell
Account & Social Media Manager
Sharing firsthand stories and lessons learned from running an independent restaurant: margins, marketing, and owning your customer relationships.