Spread was created as the answer to ‘What would it look like if restaurant owners banded together and built their own marketplace?”
Commission-Free Site Allows Restaurants to Bypass Third-Party Apps, Serving Up Food and Drinks Directly to Customers
NEW YORK, NY, USA, January 28, 2021 /EINPresswire.com/ — Spread, a new player in the restaurant industry, has launched an online marketplace where restaurants can upload their menus and customers can order delivery and takeout without having to pay exorbitant commissions to third-party apps like Grubhub and DoorDash.
Spread, which launched in 2020 as a way for restaurants to text deals directly to customers, has developed a fully operational online platform at tryspread.com that now services over 1,500 restaurants in New York City.
“Sure, apps are convenient, but they’re harming the very restaurants you’re trying to support, and charging you a premium for it,” says Andrew Wang, CEO of Spread. “We created Spread as the answer to ‘What would it look like if restaurant owners banded together and built their own marketplace?’”
Spread, which looks, feels, and works exactly the same as legacy food delivery apps, describes itself as “a smarter way to order food.” It is a welcome alternative to competing online delivery services, which end up being incredibly expensive for restaurants and diners alike. Food delivery platforms can make meals cost as much as 91 percent more for customers. Considering that a typical order size is $30.00, with third-party apps, the associated fees cost an average of $6.00 to $9.00. With Spread, restaurants pay only $1.00, and customers pay no additional fees.
Spread’s business model is to make money through performance marketing instead of charging commissions. Rather than demanding a 15%–35% cut from restaurants on every order like the legacy delivery platforms, Spread asks for a small flat fee, saving restaurant owners significant amounts of money.
Customers go to tryspread.com and browse through all available restaurant options in their delivery area, with the ability to sort by typical filters such as cuisine, price, and dietary restrictions. Special offers from individual restaurants — such as $7 off your first order — appear at the top of the page. The marketplace also allows restaurants to market directly to their customers through exclusive offers.
“We’re cloning our marketplace and giving it away at cost. We’re building a dedicated local ‘ad network’ that incentivizes restaurants to run smart, creative, fun, value-added marketing campaigns,” says Wang. “Restaurants are more than happy to pay for new customers — or even re-engage old ones — but paying 15–35% fees on every online order is a recipe for disaster.”
The costs associated with the Spread marketplace (software development, hosting, customer service) are covered by a flat order fee ($1), versus the huge commissions charged by others. The onboarding process for restaurants is relatively simple, too. Spread digitizes a restaurant’s menu and links to its bank accounts; then it’s up and ready for customers.
“It’s a win-win for restaurants and customers alike. Because Spread takes no commission fees, you’ll always find the best prices and exclusive offers on Spread, while supporting local restaurants,” says Wang.
Spread’s model is working. Its biggest driver of growth to date is word-of-mouth from existing restaurant customers, and it’s built a referral program to help drive further expansion.
“At the beginning of 2020, the restaurant industry was already facing unprecedented challenges stemming from high rents and the incursion of third-party technology tools at the transactional level. The COVID–19 pandemic, combined with the aforementioned market conditions, has had a catastrophic effect on the industry, particularly as it relates to independent operators.
The popularization and widespread use of third-party online ordering services has given them tremendous power to demand extremely high percentage shares of each processed order, leaving operators with very little room, if any, to turn a profit as minimum wages and rent continue to go up. Small, independent restaurants are now faced with sharing a large percentage of the economics with ancillary services even though they carry most of the risk and the expenses associated with the business. For this reason it is imperative for restaurants to try to increase their share of commission-free orders in order to survive.
Spread is a great partner aiming to do just that, offering a creative way to provide third-party ordering services to restaurants, allowing them to keep most of the economics, which is key for the industry to navigate the tough times ahead, ” says Enrique Mendez, Owner, Stone Bridge Pizza & Salad, in Manhattan.
On the consumer end, Spread plans to roll out its app for iOS and Android this year, and will look to advance into other markets beyond New York.
Restaurants interested in joining the Spread marketplace can email andy at tryspread dot com.
Spread is an online marketplace that connects restaurants with customers, offering delivery and take-out services without having to pay exorbitant commissions to third-party apps. Spread delivers a smarter way to order food, offering a flat fee on orders for restaurants and exclusive deals for customers, saving all parties significant amounts of money. This helps restaurants survive through the pandemic while beckoning customers to become regular, repeat patrons. Spread is headquartered in New York. http://tryspread.com