ChowNow, a prominent online food ordering platform, has experienced remarkable success in recent years. With its user-friendly interface and extensive restaurant network, ChowNow has become the go-to platform for people looking to order food online. But what is the secret behind ChowNow’s success? How does it generate revenue? In this article, we will explore the various revenue streams that have contributed to ChowNow’s accomplishments.

1. Commission from Restaurants

One of the primary sources of revenue for ChowNow is the commission it receives from partner restaurants. When customers place an order through the platform, ChowNow takes a percentage of the total transaction value as its commission. This commission-based model ensures a steady revenue stream for ChowNow while incentivizing restaurants to join the platform.

Furthermore, as ChowNow continues to expand its restaurant network, the overall volume of orders increases, leading to higher commission earnings. This mutually beneficial relationship between the platform and its partner restaurants has been a key driver of ChowNow’s revenue success.

2. Subscription Fees

In addition to commissions, ChowNow also generates revenue through subscription fees. The platform offers a range of subscription plans to restaurants, providing them with enhanced features and tools to manage their online ordering operations effectively.

By offering value-added services, such as customer database management, marketing integrations, and customizable menus, ChowNow attracts restaurateurs who are willing to pay a monthly or annual fee for these additional benefits. The recurring subscription fees contribute significantly to ChowNow’s revenue and help fund further platform development.

3. White-Label Solutions

ChowNow’s success can also be attributed to its white-label solutions, which allow restaurants to have their own branded online ordering systems. This service is particularly popular among larger restaurant chains or establishments looking for a highly customized and seamless online ordering experience for their customers.

ChowNow charges an upfront setup fee and an ongoing maintenance fee for providing these white-label solutions. By catering to the specific needs of individual restaurants, ChowNow has been able to establish long-term partnerships and generate a steady source of revenue.

4. Marketing Partnerships

Another revenue stream for ChowNow comes from partnering with third-party marketing platforms. ChowNow collaborates with various digital marketing companies, allowing them to promote the platform’s services to a wider audience.

These partnerships result in increased brand visibility for ChowNow, attracting more users to the platform. In return, marketing partners receive a portion of the revenue generated by the users they refer to ChowNow. This mutually beneficial arrangement helps ChowNow expand its user base while generating revenue from its marketing partnerships.

5. Order Customizations

ChowNow offers additional features that allow customers to customize their orders, such as adding extra toppings, modifying ingredients, or requesting special instructions. While these customizations may seem insignificant, they contribute to ChowNow’s revenue.

ChowNow charges a small fee for each customization made by customers. Though individually these fees may be nominal, the cumulative effect of multiple customizations across thousands of orders adds up, creating an additional revenue stream for the platform.

6. Advertisement Opportunities

Recognizing the potential for targeted advertising, ChowNow offers restaurants the option to promote their establishments within the platform. These advertisements can be in the form of featured listings, banners, or sponsored placements, allowing restaurants to increase their visibility to potential customers.

By charging restaurants for these advertising opportunities, ChowNow generates revenue while providing an additional avenue for restaurants to attract customers and drive sales. This revenue stream aligns the interests of both the platform and its partner restaurants.

7. Delivery Partnerships

In recent years, ChowNow has also ventured into delivery partnerships with third-party delivery services. By collaborating with established delivery companies, ChowNow can offer its restaurants the option to fulfill delivery orders through these partners.

ChowNow receives a percentage of the delivery fee charged by its delivery partners, thus generating revenue from each delivery order facilitated by the platform. This diversification into the delivery space has been instrumental in expanding ChowNow’s service offerings and revenue sources.

8. Data Insights and Analytics

With a vast amount of data collected from customer preferences and ordering behavior, ChowNow can provide valuable insights and analytics to its partner restaurants.

Restaurants can leverage this data to understand customer trends, optimize their menus, and tailor their marketing strategies. ChowNow offers these data analytics as an additional service, charging restaurants for access to these valuable insights.

9. API and Integration Services

ChowNow provides restaurants with an open API and integration services, allowing them to seamlessly connect their online ordering systems with various other software and platforms they may be using.

Restaurants are charged for accessing these integration services, enabling them to create a unified and efficient ordering process. This revenue stream capitalizes on the increasing demand for tech solutions that streamline restaurant operations.

10. Platform Licensing

ChowNow has also explored the avenue of platform licensing, wherein it licenses its white-label technology to other businesses in the food industry.

By offering a scalable, customizable, and reliable online ordering platform, ChowNow allows businesses, such as catering companies or specialized food delivery services, to leverage their technology. In return, ChowNow receives licensing fees, diversifying its revenue sources beyond direct restaurant partnerships.

Frequently Asked Questions

1. Is ChowNow free for restaurants?

No, ChowNow is not entirely free for restaurants. While the platform offers basic features and services for free, restaurants can choose to subscribe to premium plans or opt for additional services for a fee.

2. How much commission does ChowNow take from orders?

The commission percentage taken by ChowNow may vary based on various factors, such as the restaurant’s location, size, and the volume of orders received. Typically, ChowNow charges a commission ranging from 10% to 25%.

3. Does ChowNow provide delivery services?

No, ChowNow itself does not provide delivery services. However, it has integrated with third-party delivery partners to offer restaurants the option to fulfill delivery orders through these partners.

4. Can restaurants use their own delivery drivers with ChowNow?

Yes, restaurants have the flexibility to use their own delivery drivers alongside third-party delivery services integrated with ChowNow. This allows restaurants to cater to a wider range of delivery options based on their preferences and business needs.

5. How does ChowNow ensure data security for restaurants and customers?

ChowNow places great importance on data security and privacy. The platform implements robust security measures to protect the data of both restaurants and customers. Additionally, ChowNow adheres to strict data protection regulations and industry standards to ensure the utmost security of its users’ information.

References:

1. ChowNow Official Website

2. Forbes – “ChowNow: Democratizing The Online Food Ordering Experience”

3. TechCrunch – “ChowNow Raises $20M Series B for White Label Restaurant Ordering”