Escape High Commissions: Your Guide to Direct Online Ordering in NZ
For many New Zealand restaurant, cafe, and service business owners, third-party delivery apps like Uber Eats started as a lifeline. They offered a way to reach new customers and navigate a changing market. But for many, that lifeline has started to feel more like an anchor, with commission fees of up to 35% eating away at already tight profit margins. The CEO of the Restaurant Association of New Zealand has even called these rates unsustainable for the hospitality industry.
If you're feeling the squeeze, you're not alone. The good news is there's a powerful alternative: taking control with your own commission-free online ordering system. This guide is designed specifically for NZ business owners—from restaurants and food trucks to beauty shops and massage therapists—to show you exactly how to escape high commission fees, own your customer relationships, and build a more profitable, resilient business.
The Real Cost of Third-Party Delivery Apps in NZ
The most obvious cost is the commission, but the true price you pay for using marketplace apps goes much deeper. It's a model that, for many small businesses, creates an unlevel playing field. An investigation by The Spinoff revealed that while small, independent eateries were paying standard rates of 30-35%, global chains like McDonald's were able to negotiate much lower fees.
Beyond the standard commission, here are the other drains on your business:
- Hidden Fees: As highlighted by Restaurant & Café magazine, promotions and deals can come with hidden fee structures that drastically reduce the revenue you actually receive. In one case, a Glen Eden restaurant received only a tiny fraction of over $300 in orders due to these complex fees.
- Price Hikes & Transparency Issues: Many businesses are forced to increase their prices on apps to cover the commission. This lack of transparency has become so significant that Consumer NZ is now involved, lodging complaints over potential breaches of the Fair Trading Act.
- Loss of Customer Data: When a customer orders through a third-party app, they are the app's customer, not yours. You lose direct access to their contact information, order history, and preferences, making it impossible to build a relationship or market to them directly. This is a critical point we explore in our post on why you should Own Your Customer Relationships.
Commission vs. Direct: A Quick Comparison
| Feature | Third-Party App (e.g., Uber Eats) | Direct Ordering (e.g., Lazygrid) |
|---|---|---|
| Commission Fee | 30-35% of every order | 0% |
| Monthly Cost | No fixed fee, but high variable cost | Low, flat monthly software fee |
| Customer Data | Owned by the app | Owned by you |
| Brand Control | Generic listing among competitors | Fully branded to match your business |
| Profit Margin | Significantly reduced | 100% of order revenue is yours |
What is a Commission-Free Online Ordering System?
A commission-free online ordering system is a software solution that allows your business to accept and manage online orders directly from your customers without paying a percentage of each transaction to a third-party marketplace.
Instead of being one of many listings on an aggregator app, you have your own branded ordering website. This system integrates directly with your Point of Sale (POS), sending orders straight to your kitchen or booking schedule, and allows for seamless payment processing. You typically pay a flat monthly software fee, meaning you keep 100% of your order revenue. This is a fundamental feature of a modern POS, as detailed in our POS Features Checklist.
Think of it as the digital equivalent of a customer walking up to your counter. The relationship is direct, the branding is yours, and the profit stays in your business.
The Benefits of Going Commission-Free
While the financial savings are significant, the advantages of a direct ordering model extend to every part of your business.
Massive Financial Savings: Let's do a simple calculation. For a small cafe doing a realistic $8,000 per month in online orders through an app with a 30% commission, you're paying $2,400 in fees. A direct ordering system, like Lazygrid's Standard Plan, costs just $59 per month. That's a saving of over $2,300 every single month, or nearly $28,000 a year, that goes straight to your bottom line.
Complete Customer Ownership: By using a direct system, you capture valuable customer data. You can see who your regulars are, what they like to order, and how often they visit. This data is a goldmine for building a powerful Loyalty Programme. Imagine offering digital stamp cards that automatically reward your best customers, a strategy that has helped similar businesses increase repeat visits significantly.
Full Brand Control: Your online ordering page can be customized to match your brand's look and feel. You control the photos, the descriptions, and the entire customer journey, creating a seamless brand experience rather than being a generic entry in a long list.
Operational Efficiency: A fully integrated Online Ordering system means orders appear instantly on your POS and Kitchen Display System (KDS). This eliminates the need for staff to manually re-enter orders from a separate tablet, reducing errors and saving valuable time during busy periods. Plus, with Staff Management features like individual logins, you have clear accountability for every order. This streamlined workflow is key to reducing staff stress and boosting retention.
Smarter Menu Decisions: With direct access to your sales data, you can see exactly which items are your best-sellers and which are least popular. This allows you to make data-driven decisions on your offerings—a practice known as menu engineering. When combined with insights from Inventory Management and Reporting & Analytics, you can optimize stock levels and maximize profitability on every dish. For a deep dive, check out our Menu Engineering Masterclass.
A Solution for More Than Just Restaurants
One of the biggest misconceptions is that online ordering is only for food. The technology is incredibly versatile and offers powerful solutions for service-based businesses as well—an audience completely overlooked by food delivery apps.
For Beauty Shops, Salons & Massage Therapists: An integrated system like Lazygrid's Booking/Reservation System is a game-changer. You can allow clients to book appointments, choose services, and pay a deposit online to dramatically reduce no-shows. Automated SMS or email reminders do the follow-up work for you, and it can even help you implement a sophisticated Waitlist Strategy to fill every available slot.
For Food Trucks: Mobility and speed are everything. A system that runs on an iPad or iPhone allows you to take pre-orders for events, cutting down on queues and ensuring you don't run out of popular items. Customers can order and pay on their way to your location, grab their food, and go.
For any local NZ business, having a system designed with the local market in mind is crucial. That's Why NZ Salons & Cafes Need a Hyper-Local POS System.
Your Actionable Plan: How to Transition Customers to Direct Ordering
Switching systems can feel daunting, but the data is on your side. A 2022 report from the Restaurant Association of NZ found that the most preferred methods for ordering takeaways were phoning the establishment or using the business's own website. Only 15% preferred using a third-party app. Your customers want to support you directly; you just need to make it easy for them.
Here's a step-by-step plan:
Start with Your Packaging: Add a small flyer or sticker to every takeaway bag that says, "Love our food? Order direct next time and save! Your support helps our local business thrive." Include your website and a QR code.
Incentivise the First Direct Order: Offer a compelling one-time discount, like "Get 15% off your first order when you use our website." The cost of this discount is far less than the commission you'd pay on their future orders.
Update Your Digital Footprint: Make your direct ordering link impossible to miss. Place a prominent "Order Online" button on your website's homepage, in your Instagram bio, on your Facebook page, and on your Google Business Profile.
Use Your Receipts: A modern POS with Advanced Printing capabilities allows you to add a custom message to the bottom of every receipt. Add a short note like, "Order direct at [yourwebsite.co.nz]".
Promote Digital Vouchers: Use your system to sell Vouchers & Gift Cards directly from your site. It's an easy revenue win and a great way for loyal customers to introduce friends to your business.
Train Your Staff: Ensure your team knows to mention the new direct ordering option when taking phone orders or serving customers in-store. A simple, "You know, for next time you can also order directly from our website!" can make a huge difference.
Take Back Control and Keep Your Profits
The challenges facing the NZ hospitality sector, from workforce pressures noted by the MBIE to rising costs, make every dollar count. Relying on third-party apps that charge unsustainable commissions is no longer a viable long-term strategy.
Transitioning to a commission-free online ordering and booking system is one of the single most impactful decisions you can make for the financial health and future of your business. It's about more than just technology; it's about owning your brand, building direct relationships with your community, and keeping the hard-earned money you deserve.
Ready to stop paying commissions and start keeping the profits you've earned?
Start Your 14-Day Free Trial of Lazygrid Today
For just $59/month, you can save thousands in fees. No credit card required to get started.