7 Reasons Why First-Party Ordering Is Taking Over Third-Party
Independent restaurant operators are shifting away from third-party delivery apps — and for good reason.
First-party ordering is the smartest way for independent restaurant operators to grow and build a profitable local customer base. When you own your online orders, you keep more money, protect your reputation, and turn one-time guests into loyal regulars.
The data backs it up: 40% of limited-service brands say first-party digital ordering will drive their biggest revenue growth this year — beating catering, dine-in, and third-party apps (Source: Qu). Guests feel the same: just 13% still prefer third-party apps, while 40% now want to order direct through your website or app (Source: Restaurant Technology News).
Here’s the kicker: repeat guests spend 67% more than first-timers, making your customer data and loyalty program more valuable than ever (Source: Restaurant Technology News).
And with the online food delivery market still climbing — expected to hit $466 billion globally by 2026 — and local restaurants with first-party ordering stand to win the biggest share (Source: Statista). That’s the power of first-party ordering done right.
What You Control: Third-Party vs. First-Party Ordering
| What You Control | With Third-Party Only | With First-Party Ordering (Chowly Platform) |
|---|---|---|
| Profit Margins | Lose 20–30% per order to fees | Keep more profit on every sale |
| Customer Data | Marketplace owns the customer info | You own guest data for loyalty & re-engagement |
| Brand Experience | Limited branding & upsells | Fully branded site, your offers, your upsells |
| Order Accuracy | Manual re-entry = more errors | Integrated, automated = fewer mistakes |
| Delivery Reputation | Mistakes often blamed on you | You choose reliable partners, control quality |
| Revenue Stability | Vulnerable to policy/fee changes | Less reliant on marketplaces, more resilient |
| Long-Term Loyalty | Harder to build, customer stays with app | Direct loyalty programs & repeat business |
| Consumer Preference | 13% prefer ordering through third-party apps | 40% prefer to order direct through your website/app |
1. You Keep More Profit from Every Order
More money stays with you.
When you rely on third-party delivery apps as your main channel, you’re giving up 20–30% of every sale. (Source: Deloitte) That’s profit you could be putting back into better ingredients, higher staff pay, or local marketing to keep regulars coming back.
First-party ordering lets you keep that money in your business. You own the order from click to kitchen — no middleman cutting into your margin.
It works: Operators like Two Eggs! increased their takeout profit by 30% when they switched to first-party ordering. Now, 60–65% of their guests are repeat regulars who spend more than first-timers. (Source: Restaurant Technology News).
You do the work. You should keep the reward. Stop paying to “rent” customers.
✅ More money in your pocket
✅ Stronger loyalty with your regulars
✅ Fewer fees eating into every sale
Want to see how it works? See how Two Eggs! did it with the Chowly Platform.
2. You Control the Customer Experience
Your menu. Your prices. Your relationship with guests.
When you rely on third-party apps, you give up control. They decide where you show up, what guests see, and how your brand appears — if it shows up at all. And when an order is late or wrong? 51% of customers blame you, not the app. (Source: The Food Institute Podcast)
First-party ordering gives that control back to you. Guests see your real menu, your best prices, and the offers you want to promote — all on your branded site. No buried listings behind competitors. No surprise markups that hurt trust.
And it’s what guests want:
✅ 40%prefer to order direct. Only 13% stick to third-party apps. (Source: Restaurant Technology News)
✅ 70% say they’ll choose direct if given the choice. (Source: FoodOnDemand)
Why? They get the best price, no hidden fees, and a clear line to you if something needs fixing. You get fewer fees, stronger reviews, and more repeat business.
Owning your experience means you protect your reputation every time someone clicks “Order Now.”
3. You Increase Order Value
Grow every ticket and keep more of what you earn.
Every dollar counts — especially when you’re paying rent, staff, and food costs that never stop climbing. First-party ordering helps you make the most of every sale. When guests order direct, you decide which upsells, add-ons, and bundles make sense for your menu — and you keep that extra margin instead of losing it to marketplace fees.
And guests respond when it’s easy:
✅ Digital orders average 20% higher spend than in-store. (Source: Deloitte)
✅ Restaurants see about 26% higher check sizes for online orders. (Source: Deloitte)
✅ 34% of guests spend more when they order online instead of in person. (Source: Statista)
✅ And with repeat guests spending far more than first-timers, your upsells pay off long-term. (Source: Restaurant Technology News)
With the Chowly Platform, you’re set up to maximize that value without adding friction for your team. Bundles, specials, and upsells are easy to manage in one place — the Chowly’s Platform handles it for you
One clear view of your orders and payments matters, too. 87% of brands now say unifying payments is key to controlling costs and seeing a single picture of the guest relationship. It’s not just about higher check sizes — it’s about knowing what’s driving them, so you can do more of it.
4. You Reduce Manual Work and Errors
Stop the profit leaks that drain your bottom line.
Every mistake adds up: Market Force found that inaccuracy can costs over $26 million a year, mostly because of lost loyalty and fewer return visits — not just remake costs. Even a few errors can chip away at 38% of a customer’s lifetime value.
With the Chowly Platform, your first-party orders sync automatically with your POS, website, Google, and delivery partners. No duplicate entry. No extra hardware. No extra logins for your team to juggle. You save time, protect your kitchen flow, and reduce costly errors.
You’re not alone: 70% of brands say they’re focused on improving order accuracy (up from 64% last year) to run more efficiently, and 58% want better online ordering strategies to help get there. (Source: Qu)
Direct ordering helps your guests, too. They see your real menu, double-check their order, and send it straight to the kitchen with clear instructions — less back-and-forth, fewer mistakes. As Steve Zagor at the Institute of Culinary Education puts it, “Human error is always a possibility.” Better systems make it less likely.
And when you cut out tedious fixes, you make your team’s day better, too. Less busywork means more time for real hospitality — and better staff retention.
✅ Fewer mistakes
✅ Smoother operations
✅ Guests — and employees — who stick around
5. You Build Real Loyalty (Not Just Temporary Traffic)
Winning back the guest is job #1
Third-party apps might help you get orders, but they don’t help you build real loyalty. They keep the data and the connection for themselves — so you pay every time you want that same guest back.
First-party ordering changes that. When you own the relationship, you keep every guest you worked so hard to earn. You know who they are, what they love, and how to reach them again. That’s what turns one order into many more.
Restaurant loyalty programs are becoming a game-changer for operators who want to keep guests coming back and spending more. The right loyalty software doesn’t just reward frequent diners — it helps you upsell, grow visit frequency, and lift your average order value.
✅ Visit frequency: +35% average increase (Clavaa Research)
✅ Order value: +20% average boost (Clavaa Research)
Better customer data helps you take loyalty even further. You can see trends, track what’s working, and adjust offers or marketing to keep the pool wide — not just the same handful of regulars. It’s one reason 77% of operators say loyalty programs are part of their plan to grow and keep more guests over time. (Source: Qu)
Guests want that, too. They come back when ordering is easy, personal, and direct — no hidden fees, no middleman. It feels better for them, and you keep more money in your pocket.
Operators who double down on first-party loyalty see stronger repeat business, more word-of-mouth, and steadier profit. Two Eggs! made the switch and now they don’t have to pay a middleman to “rent” the same customers again — they own that connection.
✅ You own your guest data
✅ You build loyalty on your terms
✅ You keep more profit from every repeat visit
A strong first-party ordering system makes it easy to run the loyalty program you want — on your terms, with your guest data staying with you.
6. You Protect Your Reputation
Keep the trust you’ve earned.
Your online reputation is one of the most valuable things you have — and once it slips, it’s tough to win back. These days, delivery mistakes are one of the biggest ways restaurants lose trust without even realizing it.
Think about it: 90% of guests have had a delivery go wrong. When that happens, more than half will blame your restaurant — not the app, not the driver. 40% say they’ll order from somewhere else next time. And 66% will stop ordering altogether after too many slip-ups. One late or cold meal can mean dozens of lost orders down the road.
That’s why more operators are pulling delivery back into their hands. With first-party ordering, you decide who handles your food, how orders flow to the kitchen, and how quickly problems get fixed. You get real-time visibility — and your guests get the right order the first time.
Operators everywhere feel the impact. That’s why 70% of restaurants now say order accuracy is a top priority for running more efficiently, and over half want stronger online ordering tools that help prevent mistakes before they happen.
Better accuracy means better reviews. Better reviews mean you show up higher when locals search “takeout near me.” And every good experience makes it more likely that a one-time guest becomes a regular.
Running a restaurant is already tough enough — you shouldn’t lose your reputation to a third-party mistake you never had a chance to fix.
✅ Control the quality from kitchen to doorstep
✅ Protect your reviews and your local ranking
✅ Keep your hard-earned regulars loyal
7. You Future-Proof Your Business
Stop patching holes — build a system that lasts.
Depending on third-party apps leaves you exposed. They can raise fees, change policies, or push you down the list overnight — and your revenue takes the hit. Owning your first-party ordering puts you back in control of your data, your guests, and your profit.
The smartest operators know this patchwork approach doesn’t hold up. 34% of brands plan to invest in better data and connected strategies in 2025 to work smarter, not harder. (Source: Qu) And 88% of restaurants say they’ll invest in tech that drives direct orders and reduces marketplace reliance.
Even the big delivery platforms see it. Uber’s CEO called first-party ordering “one of the fastest-growing parts of our business.” (Source: Restaurant Business Magazine)
Why? Because it works. A strong first-party channel keeps your brand stable — so you’re not at the mercy of someone else’s app. You keep your guests, your data, and your margins where they belong: with you.
Two Eggs! did it — they turned off third-party ordering. Now they own every order, every guest, every dollar.
✅ More control over your business data
✅ One platform, not a patchwork of tools
✅ Freedom to grow on your terms
FAQs
Because you keep more profit, own your customer relationships, and build long-term loyalty instead of paying to “rent” customers every time.
Not with the right system. The Chowly Platform automates syncing, updates, and upsells — so you spend less time fixing mistakes and more time serving guests.
Yes! 70% say they’ll choose direct if given the option. They trust your site for the best price, no hidden fees, and better service.
Not at all — but you can if it makes sense. Many restaurants run a smart hybrid: they use third-party for new traffic, then convert repeat guests to order direct. Others go all-in on first-party once they see the impact, cutting costly marketplace fees and boosting margins. Chowly Platform supports whatever strategy grows your profit fastest.
Restaurants that switch often see up to a 30% increase in takeout profit. Every dollar you keep in-house goes right back into your staff, food, and growth — not into marketplace commissions.
No. The Chowly Platform is built for independent restaurant operators to have the same competitive tools big brands use — without the overhead or hassle. We handle the setup so you can stay focused on serving guests.
Fast. Most restaurants are live within days. The Chowly team does the heavy lifting: setup, menu syncing, POS integrations, and ongoing support. No extra hardware, no messy installs — just more control and profit.
