The Complete Guide to Online Ordering Systems for Restaurants

Online ordering has transformed the restaurant industry, turning what was once a convenience into an absolute necessity. In 2025, the US online food delivery market is expected to reach $424.9 billion in revenue. 

Customers expect to browse menus, place orders, and pay for their meals with just a few taps of their phones. Whether they’re grabbing takeout on the way home from work or scheduling a delivery for later that day, digital ordering has become the norm. 

For restaurant operators, this presents both an opportunity and a challenge: how to implement an online ordering system that maximizes revenue while maintaining control over their customer relationships.

In this guide, you’ll learn everything you need to know about online ordering systems, including:

• Why having an online ordering system is essential for modern restaurants
• The key differences between third-party platforms and direct ordering solutions
• How a commission-free ordering system can help you increase revenue and strengthen customer relationships
• The fundamental features every online ordering system should have
• How to set up your own online ordering system

By the end of this article, you’ll have a clear understanding of how to take control of your restaurant’s online ordering strategy so you can grow and operate your business on your own terms. 

Why Every Restaurant Needs an Online Ordering System

The answer is simple: to stay competitive. If your restaurant doesn’t have an online ordering system yet, you’re leaving money on the table—literally.

Since 2014, online ordering has grown 300% faster than dine-in and now accounts for roughly 40% of restaurant sales. 

Customers expect the convenience of ordering from their phones, and if they can’t do so easily, they’ll go somewhere else. Whether it’s takeout, delivery, or even in-house orders via QR codes, customers want a seamless and convenient way to order online.

Here are five reasons why your restaurant needs an online ordering system:

1. Customers spend more online.

Customers have a tendency to order more food when they’re not under pressure at the counter or on the phone.

Online menus encourage larger ticket sizes by making it easy for customers to customize orders, add upgrades, and look for extras like sides or desserts without feeling rushed. Suggestive selling, for example, making it easy to add modifiers and combo deals, can increase the order’s volume without being pushy.

2. It meets customer expectations.

We’ve mentioned this already, but it’s worth repeating—online ordering is the new standard. 

Customers expect that they can place orders with just a few clicks of their phone. If your restaurant doesn’t offer online ordering, they’ll more than likely go to a competitor who does. 

3. You get fewer mistakes, and customers get faster service.

Phone orders are prone to human error—misheard items, incorrect addresses, and unclear special requests are all common issues with manual order taking.

With an online ordering system, customers enter all the data themselves, reducing mistakes and miscommunications. This leads to fewer refunds, faster prep times, and a smoother experience for both your restaurant and your guests. 

4. You keep more of your profits.

Third-party delivery apps take a big cut of every sale—sometimes as much as 30%. 

While they do bring in orders, they also eat into your margins. Running your own online ordering system gives you complete control over pricing, promotions, and customer data, helping you maximize profits while still offering convenience.

5. You build stronger direct customer relationships.

When customers order through a third-party app, you don’t get access to their contact information, making it harder to bring them back. 

With your own online ordering system, you can collect emails, send promotions, and encourage repeat business with reward programs or special discounts.

Next, let’s compare third-party platforms vs. direct online ordering systems to see which option is best for your restaurant. 

The Two Types of Online Ordering Systems

Restaurants have two primary approaches to setting up online ordering: using a third-party platform or implementing their own direct online ordering system. 

While both allow customers to place orders online, they operate in very different ways—those differences can have a major impact on a restaurant’s bottom line, customer relationships, and overall success. 

1. Third-party online ordering platforms

These are the big-name apps—think Uber Eats, DoorDash, and GrubHub. They give you instant access to a massive customer base, which can be great for visibility. 

So, if instant exposure and hands-off management are what you’re looking for, third-party platforms can help bring in orders without requiring much on your end.

However, there’s a trade-off. 

Third-party platforms charge extremely high commission fees—often between 20-30% per order—cutting deep into your profits. On top of that, when customers order through these platforms, they become the app’s customers, not yours. 

That means you don’t have access to valuable customer information or an easy way to engage with customers to encourage repeat orders outside the platform. 

Benefits of third-party platforms:

• Access to new customers: These platforms have millions of active users searching for local restaurants. 
• No major set up required: Mostly simple to get started.
• Convenient for customers: Many diners are already familiar with these apps and use them regularly. 

The drawbacks of third-party platforms:

• High commission fees: The biggest downside of third-party marketplaces is their cost. Most platforms charge 20-30% per order in commissions, which eats into already tight profit margins. For restaurants that rely heavily on delivery, these fees can make online orders far less profitable than in-house sales.
• Limited brand control: When customers order through a third-party app, they’re interacting with the platform—not the restaurant. The restaurant doesn’t get access to customer data, making it difficult to send promotions or increase customer retention. 
• Brand Dilution: On these platforms, restaurants compete with hundreds of others in their category. There’s little room for branding, and menu presentation, pricing, and promotions are often influenced by the platform’s rules rather than the restaurant’s preferences.
• Dependency on third-party policies: Since these platforms control the ordering experience, restaurants are subject to their policies, fees, and even algorithm changes that affect visibility. If a platform changes its terms or increases fees, restaurants have little recourse.

While third-party platforms can be helpful in attracting new customers, they shouldn’t be a restaurant’s only ordering channel. 

A direct online ordering system offers a more sustainable way to grow revenue and customer loyalty—without paying a commission for every sale.

2. Direct online ordering system

A direct online ordering system is built specifically for your restaurant, allowing customers to place orders directly through your website or app. This gives you control over pricing, branding, and promotions while eliminating the hefty commission fees that come with third-party apps.

A direct system also means you own the customer relationship. You can gather emails, send personalized promotions, and build loyalty programs to encourage repeat business. 

While there’s some effort involved in setting up and maintaining your system, the long-term benefits—higher profits, better customer retention, and more control—significantly outweigh the initial investment.

Benefits of a direct online ordering system:

• Full control over customer experience: A direct ordering system integrates seamlessly with a restaurant’s website, providing a branded, distraction-free experience where customers can browse the menu and place orders without being exposed to competitors.
• No commission fees: Unlike third-party platforms that take 15-30% per order, direct ordering systems let restaurants keep 100% of their revenue, making online sales far more profitable.
• Own your customer data: Restaurants gain full access to customer contact information, order history, and preferences, allowing them to build relationships, send targeted promotions, and increase repeat business.
• Flexible pricing and promotions: With full control over their menu, restaurants can adjust pricing, offer discounts, and create reward programs without restrictions from third-party platforms.
• Full support through setup process: ChowNow provides full support through the entire setup process so restaurants can start taking online orders as quickly as possible. 
• Seamless and user-friendly ordering experience: A well-designed direct ordering system is intuitive, making it easy for customers to browse the menu and place orders without assistance.

A direct online ordering system is about managing your online assets and creating a long-term investment for your restaurant. 

By taking control of your online sales, you eliminate high commission fees and build better direct relationships with your customers.

With access to customer data, you can create targeted promotions, rewards programs, and personalized marketing campaigns that drive repeat business—something third-party platforms simply don’t allow. 

Plus, with seamless website integration, customers get a distraction-free ordering experience that reinforces your brand instead of pushing them toward competitors.

The Key Features of a Direct Online Ordering System

Every strong direct online ordering system comes with key features that enhance both the customer experience and restaurant operations. 

These features work together seamlessly, making ordering easy for guests while helping you run your restaurant more efficiently behind the scenes.

1. Direct website ordering

A direct website ordering system ensures that customers place orders directly through a restaurant’s website—without going through a third-party platform. This keeps profits in-house, strengthens your customer relationships, and makes ordering feel effortless.

Why It Matters:

• No commission fees: Restaurants keep their revenue instead of losing a percentage to third-party platforms.
• Full brand control: Customers order through the restaurant’s website, avoiding competitor distractions.
• Better customer relationships: Restaurants can collect customer data for marketing, reward programs, and repeat business.

Make direct ordering the most convenient choice by placing a clear “Order Online” button on your homepage and promoting it through email, social media, and in-store signage.

2. Branded mobile app

A custom-branded mobile app makes ordering even easier for repeat customers, keeping your restaurant top-of-mind and just a tap away. Instead of searching for you in a third-party app, customers can open your dedicated app and place an order in seconds.

Why It Matters:

• Faster, more convenient ordering: Customers can reorder favorites with just a few taps.
• Stronger brand connection: Your logo, colors, and menu are front and center.
• Boost repeat business: Use push notifications for promotions, rewards, and special deals.

A mobile app makes it effortless for customers to choose you over competitors, increasing direct orders and long-term loyalty. 

3. A commission-free structure

Unlike third-party platforms that take a 20-30% cut per order, most direct online ordering systems operate on a flat fee or subscription model, allowing you to keep more revenue.

Why It Matters:

• Higher profit margins: No commission fees eating into your sales.
• Predictable costs: A fixed monthly fee instead of unpredictable per-order charges.
• Lower menu prices: No need to inflate prices to cover third-party fees.

By switching to a commission-free model, restaurants increase their bottom line while offering customers better value.

4. Operator owned customer data

When customers order through third-party apps, the platform owns the customer relationship, not your restaurant. A direct online ordering system gives you full access to customer data, allowing you to market directly, significantly increasing the odds of driving repeat business.

Why It Matters: 

• Better marketing opportunities: Collect customer emails and phone numbers for promotions, and personalized offers.
• Personalized promotions: Offer tailored discounts based on order history.
• Encourage repeat business: Use customer insights to offer targeted discounts and incentives that keep them coming back.

Owning your customer data means you control the conversation, making it easier to encourage direct orders and long-term loyalty.

5. Full control menu and pricing management 

A direct online ordering system lets you update your menu, pricing, and availability in real-time without waiting on a third-party platform’s approval or dealing with restrictions. 

This flexibility ensures that customers always see the most accurate information when placing an order.

Why It Matters:

• Instant updates: Make changes to menu items, descriptions, and prices anytime to reflect seasonal specials or cost adjustments.
• Full control over pricing: Set your own prices without having to factor in third-party commissions or markups.
• Manage item availability: Easily mark items as out of stock or add limited-time offerings to keep customers informed.

You need your menu and pricing to reflect what’s actually happening in the restaurant so customers don’t get frustrated with menu items and prices that don’t match. 

A strong online ordering system will always allow you to keep your menu current. 

6. Fully integrates with in-house operations

A direct online ordering system should always work seamlessly with your existing restaurant operations so orders move smoothly from customers to the kitchen to pickup or delivery. 

The best systems integrate with POS systems, kitchen display systems (KDS), and payment processors to reduce manual work and errors.

Why it matters:

• Sync with POS systems: Orders flow directly into the restaurant’s point-of-sale system, reducing manual entry and mistakes.
• Improve kitchen workflows: Digital orders are sent straight to the kitchen, keeping operations smooth and organized.
• Optimize order fulfillment: Integrated systems help manage in-house, takeout, and delivery orders all in one place.

Your online ordering system needs to cooperate with the rest of the restaurant technology keeping your operations smooth—the best systems are built with this in mind, making it easy to connect with your POS, kitchen display, and other essential tools. 

How a Direct Ordering System Helps Restaurants Grow

At this point, it’s pretty easy to see how beneficial online ordering systems are—but when it comes to long-term growth, the impact of a direct ordering system can be boiled down to three key factors: 

1. Higher profits
2. Stronger customer relationships 
3. More control over your operations

Let’s break down how each of these plays a role in helping your restaurant grow year after year.

1. Higher profits and long-term stability.

One of the biggest advantages of a direct online ordering system is that it eliminates the high commission fees that come with third-party platforms. 

Apps like Uber Eats, DoorDash, and Grubhub charge 15-30% per order, which quickly eats into already tight profit margins. 

With a direct system, you keep your revenue, making online orders as equally profitable as in-house sales.

Beyond immediate cost savings, a direct ordering system also gives your restaurant long-term financial stability. 

When you rely too heavily on third-party platforms, you’re at the mercy of their policies, algorithm changes, and fee increases. 

A direct system ensures that you’re in control of your online sales, pricing, and customer interactions, creating a sustainable revenue stream that won’t suddenly shrink due to platform rule changes.

Instead of paying out a percentage of every sale, that money stays in your business—allowing you to reinvest in better ingredients, marketing, or whatever you feel is best for your restaurant to expand its operations.

Direct ordering isn’t just about making more money today; it’s about securing your restaurant’s financial future.

2. Stronger customer relationships and marketing opportunities.

Direct online ordering systems are the best way to build strong customer relationships because of built-in tools like rewards programs and automated marketing. 

When customers order through third-party platforms, the platform owns the relationship, not you. You don’t get access to their contact information, or preferences, making it nearly impossible to reach out and bring them back for another visit.

A direct ordering system changes that. You own your customer data, meaning you can collect emails, phone numbers, and order insights that help you stay connected. This allows you to:

• Send targeted promotions based on what customers love to order
• Launch loyalty programs that reward repeat business
• Use email and push notification marketing to encourage guests to order directly again. For example, this is a Bringback email from ChowNow’s Automated Email Marketing to remind customers to order again. 

Instead of relying on a third-party app to control the customer experience, you create a direct connection with your guests. Resulting in more repeat orders and a loyal base of diners who return because they feel valued by your restaurant and not like just another name in a delivery app.

3. More control and better operations.

Outside of giving customers a convenient and easy ordering experience, certain online ordering systems also help you run your restaurant more efficiently.

When using third-party apps, you’re likely managing individual tablets for each delivery app. This can quickly get chaotic as orders are coming in, not to mention having to update item availability on each separate tablet.

Instead of juggling tablets from multiple platforms, a well-integrated direct ordering system will provide order aggregation to consolidate your third-party and direct orders into one tablet. 

Below is an example of ChowNow’s order aggregation feature. 

How to Set Up a Direct Online Ordering System

Setting up a direct online ordering system might seem overwhelming at first, but with the right approach, it can be simple, efficient, and highly effective. 

Here’s a step-by-step guide to get you started:

1. Choose the Right Online Ordering Platform

Not all direct ordering systems are built the same. Look for a solution that:

• Has unlimited commission-free ordering (so you keep more of your profits)
• Integrates with your existing POS to ensure smooth operations
• Offers a user-friendly experience for both customers and staff
• Provides marketing tools like customer data collection, rewards programs, and automated emails
• Has order aggregation features so you can control your direct and third party menus from one tablet

2. Set Up Your Online Menu

Your menu is the most important part of your ordering system. To optimize it:

• Use clear descriptions and high-quality photos to encourage larger orders
• Include options for add-ons, sides, and combos
• Ensure prices and availability are accurate and up to date
• Highlight popular items or bestsellers to drive sales

3. Integrate Payment Processing

A seamless checkout process is key to reducing abandoned orders. Choose a system that:

• Accepts credit/debit cards, mobile wallets, and other digital payment options
• Ensures secure and fast transactions for a smooth customer experience
• Offers automated receipts and order confirmations via email

4. Promote Direct Ordering to Your Customers

Once your system is live, the next step is to educate customers to use it instead of third-party apps. Some effective strategies include:

• Offering first-order discounts to encourage customers to switch
• Adding “Order Online” buttons to your website, social media, and Google Business Profile
• Using email campaigns and push notifications to remind past customers about direct ordering
• Training staff to promote direct orders at checkout and during customer interactions

5. Streamline Order Fulfillment & Operations

Make sure your team is ready to efficiently handle direct orders by:

• Syncing your online system with your kitchen display or POS to reduce manual input
• Establishing clear workflows for takeout, curbside pickup, and delivery
• Setting up order notifications or auto accept so staff never miss an incoming order

6. Monitor Performance & Optimize

Once your direct ordering system is running, track its performance and customer behavior to improve sales. Look at:

• Order volume and ticket size—are direct orders increasing?
• Customer retention—are repeat customers coming back?
• Feedback and trends—are there menu items that customers love (or avoid)?

Fine-tune your customer’s online ordering experience by analyzing data and making adjustments when the information tells you to, helping you increase repeat business and make your direct ordering system the preferred choice for your customers.

10 FAQs on Online Ordering Systems

Still have questions about online ordering systems? Here are the 10 most common FAQs to help you navigate the best solution for your restaurant.

1. Why does my restaurant need an online ordering system?

An online ordering system helps increase revenue, improve order accuracy, and streamline operations. It also meets customer expectations, as most diners now prefer the convenience of ordering online rather than calling in their orders.

2. What’s the difference between third-party ordering platforms and direct online ordering?

Third-party platforms (Uber Eats, DoorDash, Grubhub) charge commission fees (15-30%) and own the customer relationship, limiting your ability to market to repeat customers. A direct online ordering system allows customers to place orders through your website without commission fees, giving you full control over pricing, promotions, and customer data.

3. How much does an online ordering system cost?

Costs vary based on the provider. Third-party platforms charge commission fees per order, while direct ordering systems typically have a flat monthly fee or a lower per-transaction cost. A commission-free model helps restaurants keep more of their profits.

4. How do I encourage customers to use my direct ordering system instead of third-party apps?

You can incentivize customers by:

• Offering exclusive discounts for direct orders.
• Promoting direct ordering on your website, social media, and email campaigns.
• Training staff to encourage direct orders when speaking with guests.
• Making direct ordering as simple as possible with a user-friendly website or app.

5. Can a direct online ordering system integrate with my POS?

Yes, many direct ordering systems integrate seamlessly with POS systems, kitchen display systems (KDS), and payment processors to reduce manual work and improve efficiency. Be sure to choose a provider that supports your existing technology.

6. Do I need an additional app for online ordering?

An additional mobile app isn’t required, but it can be a powerful tool for driving repeat business and customer loyalty. While website ordering is a great way to accept online orders, a mobile app makes it even easier for customers to reorder with just a few taps—keeping your restaurant top of mind and on their home screen.

7. How do I handle delivery with a direct ordering system?

To handle your delivery with a direct ordering system, you have a few options. With in-house delivery you’ll have to hire your own drivers, this allows you to maintain full control over the experience. Third party integrations allow you to tap into delivery apps and use their drivers for delivery. Services like ChowNow’s Flex Delivery allow restaurants to offer delivery on demand without hiring drivers or paying high commissions, giving customers more options while keeping direct orders profitable.

8. Can I collect customer data with an online ordering system?

When you use a direct ordering system, you can collect emails, phone numbers, and order history to run targeted promotions, loyalty programs, and email/SMS marketing campaigns. Third-party apps do not share this data with you.

9. How long does it take to set up an online ordering system?

Setup time depends on the provider. Some third-party platforms can be activated in a day but require high commissions. Direct ordering systems may take a few days to set up properly, but once running, they provide more long-term benefits.

10. What should I look for in an online ordering system?

A strong system should:

• Charge low or no commission fees
• Offer easy menu management and POS integration
• Provide customer data access for marketing
• Be mobile-friendly and user-friendly
• Offer flexible pricing, promotions, and loyalty features

Start Growing your Restaurant with a Commission-Free Direct Online Ordering System

A direct online ordering system places you firmly in the driver’s seat of your restaurant’s revenue, customer relationships, and brand—without losing a percentage of every sale to third-party platforms.

Contact ChowNow to set up commission-free online ordering for your restaurant and start driving more direct sales today.