The wrong choice: How NYC is going backwards in helping independent pizza shops
A federal judge recently ruled that New York City’s law requiring food delivery apps to share customer data with restaurants is unconstitutional, and will be struck down. This decision allows delivery platforms like DoorDash, Uber Eats, and Grubhub to keep and control all the customer data it receives, without sharing any of it with the local pizza shops.
Bad for Local, Great for Big Business
You work your butt off to make great food and delight your customers in the hope that they become regulars. That shop-consumer relationship is critical to your long-term success. This ruling creates a significant disadvantage for those of you in New York while creating an unfair advantage for the delivery apps. The impact of not owning or having access to customer information are numerous:
Direct Customer Relationships Suffer: One of the primary downsides of this ruling is that small shops lose the opportunity to build direct relationships with customers. When someone orders through a third-party delivery app, the pizzeria doesn’t receive the customer’s name, phone number, or email address. This lack of access makes it nearly impossible to follow up with customers, offer promotions, or encourage loyalty. Without data, you are left in the dark, unable to create a personalized experience for your diners.
Delivery Apps Gain More Control: The apps already take a substantial cut of profits, often charging fees as high as 30% per order. By keeping control of customer data, these apps gain even more leverage over local pizza shops. If you want to stop using one of these apps, you risk losing access to a significant customer base because the apps will take their loyal customers and use marketing to send them to other shops.
Need proof? This is the testimony of Amy Healy, Grubhub’s Vice President of Government Affairs when asked about what would happen if restaurants were given customer data freely, “[they] could go directly to the customer and cut us out.”
Customer Loyalty is Eroded: When people order through delivery platforms like DoorDash, their loyalty often shifts away from the restaurant to the app. Your work to keep customers through consistent service, personal touches, and great food is now in competition with a platform designed for quick, impersonal transactions. Without access to customer data, it's incredibly challenging for you to encourage repeat orders.
Marketing and Promotions are Severely Limited: When you can’t access your own data, you are unable to directly engage with your customers. Having your customer’s contact information lets you keep them in-the-know on promotions, special offers, and events. Without this direct contact with your customers, you are forced to rely on more expensive, less effective marketing strategies.
Customer Experience Gets Worse: Delivery apps control the entire transaction process, from ordering to delivery. If a delivery is late, cold, or incorrect, the customer often blames you, not the delivery service. Without the ability to communicate directly with the customer, you have little control over your customer’s overall experience, yet they still bear the consequences in the form of bad reviews and lost business.
Compete with Big Chains: Domino’s and Pizza Hut have their own apps and platforms where they collect extensive data, making it easier for them to build customer loyalty, offer targeted promotions, and streamline delivery. Local shops that rely solely on third-party platforms are at a significant disadvantage. The inability to collect customer data widens the gap between independent shops and corporate giants, as the latter can afford to invest in their own technology and customer relationship management.
This ruling tips the scale of success towards big business and those who can afford lobbyists. Our goal at Slice is to even the playing field for you. Our system helps shops like yours take orders, manage operations, and engage customers while ensuring that any customer data is owned and available to you 24/7. You deserve to create the best experience for YOUR customers. By focusing on direct ordering, building strong community ties, and adapting marketing strategies, shops like yours can thrive despite the big business, delivery apps, and now the government being against them.
