Not a new business model.
Aggregators that “innovate” commerce by centralizing ordering and subsidizing technology initially too expensive for small businesses owners are not new.
Amazon, Groupon, Uber, Skip the dishes… we can all name at least a dozen more, while they may often be beneficial for the consumer, bringing costs down & reducing friction in their user experience, it’s always at the cost of their providers.
Restaurants know the double-edged sword of delivery apps, while they drive traffic, it’s at no small expense, often costing restaurants the majority of the profit per sale.
they often charge restaurants around 30% per order. But profit margins in the restaurant industry are often razor-thin, so these fees can wipe out the restaurant’s profits or put them in the red.
The larger cost is their customers who no longer call the restaurant directly to make their next order, but order through an app instead where they’re more likely to be distracted by competing restaurants.
This is a playbook that has been copied faithfully by companies focused on owning the cannabis sales & delivery services, where & when available. Resist the siren song of a cheap “menu” service and look at solutions that put you in control of your data, your brand & your customer experience.
Dispensaries can also find themselves left out to dry when new legislation forces changes such as the “hard age gate” requirements mandated recently by the AGLC in Alberta.
None of the major “menu providers” were ready with an endorsed solution, some arguing that it was unfair to small businesses (despite being billion-dollar companies themselves) & others simply turning off e-commerce functionality with no warning or alternative to their customers.
If you are not in control of your e-commerce online, you’re giving away the most valuable asset your business has, your customer relationship in exchange for a cheap ride on the internet.
Go beyond simple menu providers and build a website that gets you found in Google searches & represents your brand exclusively.
Book a free consultation with an e-commerce expert and take control of your business growth online.
