If you run a restaurant, you already know what it feels like to watch third-party apps take a hefty slice of your hard-earned revenue. Every order that comes in through a delivery platform brings sales but also cuts deep into profits through commissions that can reach up to 15-30%. For many small and midsize restaurants, that’s money that could have gone toward ingredients, staff, or rent.

‍

Across North America, restaurant owners from family-run diners to busy ghost kitchens are rethinking their online ordering strategies. The pandemic accelerated digital adoption, but now operators are realizing that control and profitability matter just as much as convenience.

‍

In this blog, you’ll learn how switching to a commission-free restaurant online ordering system helps restaurants and QSRs regain control, improve margins, and strengthen customer loyalty.

‍

Key Takeaways

• Retain More Revenue: By eliminating per-order fees, commission-free ordering allows restaurants to keep a larger share of profits.
• Direct Customer Access: Restaurants gain full ownership of customer data for personalized marketing and loyalty programs.
• Enhanced Brand Control: Maintain consistent menu presentation, packaging, and customer experience without relying on third-party apps.
• Workflow Efficiency: Unified ordering platforms streamline workflows, reduce errors, and simplify in-house delivery management.
• Scalable & Sustainable: Suitable for independent restaurants, QSRs, and ghost kitchens, supporting growth without escalating costs.

‍

What is a Restaurant Online Ordering System?

A Restaurant Online Ordering System (ROOS) enables customers to place pickup or delivery orders directly through your website, mobile app, or branded platform. This eliminates the need for third-party marketplaces, allowing restaurants to retain full control over sales.

‍

‍

Below are the key features of a Restaurant Online Ordering System:

‍

• Digital Menu Integration with POS System: Automatically syncs menu items, prices, and inventory with your point-of-sale system. This eliminates manual updates, reduces errors, and ensures customers always see accurate availability in real time.
• Secure and Reliable Payment Processing: Supports multiple payment gateways, including credit/debit cards, wallets, and UPI, with end-to-end encryption and PCI-DSS compliance to safeguard customer transactions.
• Flexible Delivery Management: Enables in-house delivery tracking through driver apps or seamless integration with local delivery partners. Real-time order updates and delivery status improve transparency and customer satisfaction.
• Comprehensive Customer Data Access: Provides complete visibility into order history, preferences, and behavior, allowing restaurants to create targeted loyalty programs, personalized offers, and data-driven marketing campaigns.
• Custom Branding and UX Control: Enables restaurants to maintain their brand identity with personalized themes, logos, and user experiences, ensuring consistency across web and mobile platforms.

‍

For QSRs and ghost kitchens, these systems are an essential solution that simplifies digital ordering, reduces operational costs, and ensures every dollar earned stays within the business.

‍

Now, let's explore why more restaurants are adopting commission-free systems, and it's not just about cost savings.

‍

Why Commission-Free Ordering Is More Than Just “Saving Money”?

Cutting commissions isn’t just about profit; it is about gaining control, improving operational flexibility, and building stronger customer relationships. Commission-free systems allow restaurants to retain more revenue, streamline operations, and make data-driven decisions that directly benefit the business.

‍

‍

Below are the key ways commission-free ordering creates lasting value:

‍

1. Higher Margins and Operational Flexibility

Independent and quick-service restaurants often operate on very thin profit margins. Eliminating commission fees enables restaurants to retain more revenue, which can make the difference between breaking even and achieving profitability. The extra funds can be strategically reinvested to improve operations.

‍

Benefits include:

‍

• Reinvesting in premium ingredients to enhance menu quality
• Covering staff payroll without cutting hours
• Allocating funds for marketing campaigns and promotions
• Supporting seasonal menu experimentation to attract new customers

‍

2. Direct Customer Relationships

Ordering through your own platform means you own the customer relationship. Unlike third-party apps, which retain customer data and insights for themselves, commission-free systems provide you with full access to your audience.

‍

Benefits include:

‍

• Creating loyalty programs that reward repeat customers
• Sending personalized offers based on past orders
• Collecting data for behavioral insights to refine the menu and promotions
• Building a direct marketing channel without paying for leads

‍

3. Stronger Brand Control

From menu presentation to packaging, maintaining a consistent brand experience is crucial. Commission-free systems ensure your restaurant can fully control how it is perceived.

‍

Benefits include:

‍

• Custom menu layouts and visuals that reflect your brand identity
• Packaging standards that match your service promise
• Handling delivery issues directly for faster resolution
• Maintaining customer trust with consistent experiences

‍

4. Simplified Operations for Small Teams

Small or family-run restaurants often struggle to manage multiple third-party dashboards. Commission-free ordering consolidates everything in a single platform.

‍

Benefits include:

‍

• Saving hours of administrative work per week
• Streamlining kitchen workflow and order prioritization
• Reducing errors from juggling multiple systems
• Allowing staff to focus on food quality and service

‍

5. Fairer Community Economics

Commission-free models also have a broader social and economic impact. Local operators benefit from retaining profits within the community instead of paying high third-party fees.

‍

Benefits include:

‍

• Supporting local economies by keeping revenue circulating locally
• Encouraging sustainable restaurant growth in cities
• Promoting fair business practices for small and independent operators
• Responding to community advocacy for permanent commission caps

‍

These benefits are driving a significant shift in how restaurants approach digital ordering, with operators increasingly prioritizing control, efficiency, and customer engagement.

‍

With the growing momentum toward self-managed systems, it’s crucial to understand why the third-party model is becoming less sustainable for restaurants of all sizes.

‍

Challenges of Relying on Third-Party Platforms

Relying solely on delivery apps comes with several hidden trade-offs that can impact profitability, brand control, and customer relationships:

‍

‍

• Profit Erosion: High commission fees on every order can significantly affect long-term sustainability. Over time, these costs reduce funds available for ingredients, staff, and marketing.
• Loss of Control: If a driver is late or provides poor service, your restaurant’s reputation suffers, even though the platform manages delivery. You have limited ability to enforce quality standards.
• No Data Ownership: Customer information, including contact details and order history, remains with the platform. This restricts your ability to run direct marketing campaigns, loyalty programs, or personalized promotions.
• Platform Dependency: Terms, fees, and algorithms can change at any time, leaving restaurants with little negotiating power or certainty over costs and visibility.
• Customer Price Inflation: To offset high commissions, many restaurants increase menu prices on delivery apps. This can frustrate loyal customers and erode trust in your brand.

‍

Also Read: Boost Your Restaurant’s Sales with Online Ordering & POS Solutions

‍

So, what does a commission-free system actually look like when implemented, and how can restaurants of different types make it work?

‍

What Commission-Free Looks Like in Practice?

Commission-free ordering doesn’t have to be complicated or require heavy technology. It is about selecting tools that enable you to manage online orders independently, while maintaining complete control over sales and customer relationships.

‍

Examples by Restaurant Type:

‍

• Independent Restaurants & SMBs: Utilize plug-and-play systems that integrate seamlessly with your point-of-sale (POS), website, and local delivery partners. These systems enable you to accept orders directly without relying on third-party platforms.
• Quick-Service Restaurants (QSRs): Adopt branded apps to engage repeat customers, run loyalty programs, and provide a consistent ordering experience across web and mobile.
• Ghost Kitchens: Use centralized dashboards to manage multiple brands and menus, maintaining direct links for customers to ensure efficiency and revenue retention.

‍

For restaurants looking to implement a commission-free system, iOrders offers a white-label online ordering solution that eliminates high third-party commissions. Take complete control of your restaurant’s online orders with iOrders’ commission-free solution today.

‍

While the benefits are substantial, it’s equally important to understand potential challenges and how to manage them effectively.

‍

What to Know Before Switching to Commission-Free Ordering?

Switching to a commission-free system requires a mindset shift and some upfront planning. While the benefits are significant, restaurants need to address key operational and customer-related considerations:

‍

‍

1. Initial Setup

Designing or integrating a branded online ordering site or app takes careful planning. Proper setup ensures smooth operations and prevents order errors.

‍

Key considerations:

• Synchronize menus, pricing, and promotions with your POS system.
• Ensure secure and reliable payment gateways.
• Create an intuitive, mobile-friendly user experience.
• Test the system thoroughly to avoid lost orders or revenue.

‍

2. Marketing Push

Encouraging customers to move away from familiar third-party apps requires consistent promotion. Marketing efforts help increase direct order adoption.

‍

Effective strategies:

• Run targeted campaigns on social media, email, and in-store signage.
• Offer incentives like discounts, loyalty points, or exclusive deals.
• Highlight the benefits of ordering directly, such as faster service and lower fees.
• Maintain consistent messaging across all channels.

‍

3. Delivery Logistics

Managing deliveries in-house demands careful planning to maintain efficiency and service quality.

‍

Best practices:

• Schedule and train drivers to ensure timely delivery.
• Implement route optimization for faster and safer deliveries.
• Track multiple orders simultaneously to prevent bottlenecks.
• Maintain clear communication between kitchen staff and delivery personnel.

‍

4. Customer Awareness

Educating customers is key to a smooth transition from third-party platforms to your direct ordering system.

‍

Tips for engagement:

• Use clear messaging on receipts, table tents, and in-store signage.
• Share updates via social media and email newsletters.
• Highlight loyalty rewards, promotions, or faster service as perks.
• Encourage repeat orders by emphasizing the benefits of ordering directly.

‍

Also Read: Understanding Contactless Ordering in Restaurants

‍

Although the initial effort demands planning, the long-term returns are substantial. Restaurants gain consistent profit and direct access to actionable customer data. They also build stronger relationships with loyal repeat customers, creating a more resilient and profitable business model.

‍

iOrders: A Commission-Free Online Ordering Solution for Restaurants

Restaurants must balance profitability with providing a seamless online ordering experience. Traditional third-party platforms often charge high commissions, reducing margins and limiting control over customer relationships. iOrders solves these challenges by offering a commission-free online ordering solution explicitly customized for restaurants.

‍

‍

Key Features:

‍

• Branded Customer Experience: Deliver your brand's unique experience online, free from crippling third-party commissions. Customers will experience the familiar ordering process in a digital space branded just for your restaurant. They can order ahead and even pay online in the integrated platform.
• Complete Control Over Ordering: Easily update your menu, pricing, and availability to display the most accurate options. Suggest items to pair with your customers’ favorite dishes and offer rewards and discounts with built-in Loyalty and Rewards features.
• Ownership of Customer Data: Commission-free Online Ordering is the digital extension of your storefront. Just as you build and nurture relationships with guests who walk into your restaurant location, YOU own the data and relationships with your customers online as well.
• Seamless Delivery Integration: iOrders seamlessly connects with third-party delivery partners like DoorDash Drive or Uber Direct, keeping your branding front and center. These partners handle logistics only, charge a flat delivery fee, and do not take a commission on order value, making deliveries profitable and straightforward.

‍

Restaurants can fulfill orders using their in-house team, such as delivery staff employed directly by the restaurant. iOrders acts as the technology layer, handling the entire order process: it receives online orders, routes them to your POS system, and sends real-time notifications to ensure timely preparation and delivery.

‍

Streamline your restaurant’s online ordering. Try iOrders’ commission-free solution today.

‍

Final Thoughts

Relying on third-party apps can slowly reduce profits, limit customer data, and diminish control over your brand. Commission-free online ordering enables restaurants to reclaim revenue, strengthen customer relationships, and operate more efficiently, making it the future of restaurant ordering.

‍

iOrders provides a simple, white-label solution to make this shift effortless. You can manage orders directly, retain more profits, and engage your customers with loyalty programs and personalized offers. You also maintain full control of your brand and data.

‍

Take control of your restaurant’s online orders today. Try iOrders’ commission-free solution and request a demo to start maximizing revenue and building stronger customer connections.

‍

FAQs

1. Can commission-free ordering improve order accuracy?

A. Yes. By managing orders directly through your own system, restaurants can eliminate errors caused by third-party apps or manual re-entry. Orders flow straight to your POS or kitchen display, reducing miscommunication, improving accuracy, and ensuring customers receive precisely what they requested.

‍

2. Does commission-free ordering affect delivery times?

A. Commission-free platforms can improve delivery efficiency. With direct control, you can optimize routes, manage driver schedules, and coordinate kitchen workflows. This leads to faster deliveries, fewer delays, and better customer satisfaction compared to relying on external apps, where delivery performance is outside your control.

‍

3. How does commission-free ordering impact upselling opportunities?

A. Direct ordering platforms allow restaurants to suggest add-ons, combos, or premium items at checkout. Unlike third-party apps, you control the suggestions and promotions, which increases average order value and encourages repeat purchases while maintaining full ownership of the customer experience.

‍

4. Are commission-free systems scalable for growing restaurants?

A. Yes. These systems support multi-location operations, ghost kitchens, and menu expansions. Centralized dashboards allow you to track orders, manage inventory, and maintain consistent branding as your business grows, all without increasing per-order costs.

‍

5. Can commission-free ordering help with compliance and reporting

A. Absolutely. Direct systems provide detailed reports on sales, taxes, and customer data, making compliance easier. You have complete visibility over transactions, simplifying accounting, tax reporting, and operational audits without relying on third-party platforms.