What You Need to Know About DoorDash's New Algorithm

Say goodbye to the headache of juggling prices between your in-store menu and delivery apps because DoorDash is here to revolutionize the food delivery pricing game. In a recent update, DoorDash is urging restaurants to maintain consistent prices across all channels, bringing harmony and increased business opportunities. Let's dive into the details of this change and how it will empower your restaurant to thrive in the delivery world.

Bid Farewell to Price Discrepancies

We've all faced the dilemma of customers questioning the discrepancy between in-store prices and those displayed on delivery apps. It's time to put an end to those frustrations, DoorDash is introducing a game-changing algorithm that rewards restaurants with price parity. By aligning your prices across all platforms, you'll enjoy enhanced visibility and prominence on the DoorDash app. 

Significant pricing discrepancies can result in up to 37% fewer sales, a 78% reduction in reorder rates, according to DoorDash. It's clear that maintaining fair and consistent pricing is the key to winning over customers and maximizing your restaurant's success.

The Power of Price Parity

Embrace the power of price parity, and you'll reap the benefits, restaurants that choose to keep their prices in check can expect an exciting boost in sales. In fact, according to DoorDash's findings, an operator found that reducing inflation from 35% to 20% can lead to a remarkable 9% increase in sales within just two weeks. By aligning your prices with in-store menus, you could witness a fantastic 19% surge in order volume, attracting a loyal customer base that appreciates your fair and transparent approach.

Additionally, restaurants engaging in price gouging may experience a significant drop in visibility on the DoorDash app. Yes, you heard that right! Instead of being front and center, they'll be lurking in the shadows. Prioritization updates on the homepage can cause a staggering 40% decrease in sales for restaurants that inflate their prices. 

Transparency and Trust

DoorDash is currently testing in-app labels to notify customers when a restaurant's prices are consistent across all channels. This added transparency will help you build stronger customer relationships and attract a loyal following. 

DoorDash's algorithm update is a game-changer. By embracing price parity and delivering consistent pricing, you can bid farewell to the headache of managing different prices across platforms. Get ready to boost your visibility, attract more customers, and enhance your reputation as a fair and customer-centric establishment. Get ready to embark on an exciting journey toward increased sales and customer satisfaction.

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