Joe’s Pizzaria had a 5-star rating on GrubHub, but they were averaging less than $25 per order and paying out ~25% in fees. Mo figured promo codes would bring in new customers and increase sales. Unfortunately, the new customers weren’t coming back, and he was the one funding the discounts.
As a numbers guy, Mo knew that something wasn’t adding up. On a slow Tuesday, Mo reached out to his GrubHub rep for advice. On Friday, the rep called him back to suggest a promo code, funded by Joe’s Pizzaria. Meanwhile, site issues and chargebacks took days, and sometimes weeks, to resolve.
GrubHub was eating into the bottom line and sending would-be regulars to cheap fast food. Mo was losing money with every promo, and that cash ultimately went to GrubHub and KFC.