The food delivery landscape just took another major hit. GrubHub, one of the biggest names in third-party food delivery, announced layoffs of 500 employees—20% of its workforce—just weeks after being acquired by Wonder. This move signals a significant shakeup in the industry, and for restaurants, it’s a stark reminder of the risks of relying too heavily on third-party platforms.

What Just Happened?

GrubHub was purchased by Wonder, a food delivery startup founded by Marc Lore, in a deal worth $650 million. This acquisition was a huge downgrade from the $7.3 billion price tag that Just Eat Takeaway.com originally paid for GrubHub just three years ago. Following the acquisition, Wonder wasted no time in restructuring, cutting 500 jobs as part of an integration strategy.

For restaurants, this isn’t just another corporate shuffle. It’s a signal that the food delivery market is volatile, unpredictable, and increasingly controlled by large tech-driven companies whose decisions are driven by their bottom line—not by the best interests of local restaurants.

What Does This Mean for Restaurants?

1. Less Stability with Third-Party Platforms
   GrubHub’s layoffs indicate that the company is in cost-cutting mode, which may lead to reduced support, increased fees, and less favorable terms for restaurants. If they prioritize profitability over partner relationships, restaurants could see service fees rise or marketing support decrease.

2. More Mergers and Acquisitions Ahead
   The GrubHub-Wonder deal is part of a larger trend of consolidation in the food delivery industry. Fewer players mean less competition, giving the remaining giants—like DoorDash and Uber Eats—more leverage to charge higher fees and limit restaurant options.

3. Customer Experience Could Suffer
   Layoffs in major platforms often lead to slower customer support, more operational glitches, and fewer resources to help restaurants succeed. If a restaurant relies on GrubHub for a large percentage of orders, any service disruptions could directly impact revenue.

Why Restaurants Need First-Party Online Ordering

With third-party platforms becoming increasingly unstable, restaurants must take control of their digital ordering experience. Relying on a service like Orda Online, which integrates directly with Square, provides a reliable and sustainable alternative. Here’s why every restaurant should consider first-party online ordering:

1. Higher Profit Margins

Third-party platforms typically charge commission fees ranging from 15% to 30% per order. This means restaurants are giving away a significant chunk of revenue with each transaction. With Orda Online, restaurants keep more of their profits by avoiding these hefty commissions.

2. Owning the Customer Relationship

When customers order through GrubHub, DoorDash, or Uber Eats, those platforms control the data and the customer relationship. That means:

• The restaurant doesn’t get access to customer emails or phone numbers.
• It’s harder to build loyalty programs or re-engage customers with special offers.
• If GrubHub decides to remove or deprioritize a restaurant, it loses visibility overnight.

With Orda Online, restaurants own their customer data, making it easy to retarget diners, send promotions, and encourage repeat business.

3. Better Brand Control

On third-party apps, restaurants are just one of many options. The platform determines how a restaurant is presented, controls reviews, and may list competitors right alongside the restaurant’s page. Worse, food quality may suffer during delivery, yet the customer still associates any negative experience with the restaurant—not the platform.

With a first-party system like Orda Online, restaurants maintain full control over branding, messaging, and customer interactions, ensuring a consistent and high-quality experience.

4. Seamless Integration with Square

Orda Online is built for restaurants using Square, ensuring that online orders flow directly into existing POS systems. This eliminates the need for extra tablets, manual order entry, or disjointed operational workflows. Orders are processed just like in-store transactions, making it easy for staff to manage.

5. Lower Dependency on Unstable Market Forces

The GrubHub layoffs show that third-party platforms are at the mercy of acquisitions, economic downturns, and corporate restructuring. Restaurants relying on these platforms risk losing revenue if a major change disrupts service or causes fees to spike. Owning an independent ordering system protects against these unpredictable shifts.

6. Faster and More Personalized Service

Third-party apps often prioritize volume over quality, leading to delivery delays, incorrect orders, and a lack of personal touch. A first-party system enables restaurants to:

• Offer better delivery options, including in-house or local courier services.
• Customize the ordering experience with loyalty programs, upsells, and exclusive promotions.
• Provide faster service without relying on a middleman.

What Should Restaurants Do Now?

1. Start Transitioning Customers to First-Party Ordering
   Restaurants should actively promote their own online ordering system. This means training staff to inform customers, adding signage in-store, and using social media and email marketing to drive direct orders.

2. Optimize the Online Ordering Experience
   A restaurant’s website and ordering system should be easy to navigate, mobile-friendly, and integrated with a seamless checkout process. Orda Online provides a smooth user experience, ensuring customers can order with just a few taps.

3. Offer Incentives for Direct Orders
   To encourage customers to bypass third-party apps, restaurants can offer discounts, loyalty points, or exclusive menu items for direct orders placed through Orda Online.

4. Monitor Industry Trends Closely
   The food delivery market is changing fast, and more consolidation could be coming. Restaurants should stay informed and agile, adapting their strategies to minimize dependency on external platforms.

Take Control Before It’s Too Late

GrubHub’s layoffs are a wake-up call for restaurants. Relying solely on third-party platforms is risky, and the best way to safeguard a business is by investing in a first-party online ordering system. With Orda Online, restaurants can:

• Keep more profits
• Build direct customer relationships
• Control their brand experience
• Reduce dependency on unstable platforms
• Improve efficiency with seamless Square integration

Get a personal 1:1 meeting with our Online Ordering Consultant

Table Of Contents

• What Just Happened?

• What Does This Mean for Restaurants?

• Why Restaurants Need First-Party Online Ordering

  • 1. Higher Profit Margins
  • 2. Owning the Customer Relationship
  • 3. Better Brand Control
  • 4. Seamless Integration with Square
  • 5. Lower Dependency on Unstable Market Forces
  • 6. Faster and More Personalized Service

• What Should Restaurants Do Now?

• Take Control Before It’s Too Late