Canadian Startup Set To Take Big Bite Out of Excessive Food App Fees

Canada’s main street food and convenience retailers can now use ChangeJar’s easy-to use Order Ahead, Scan & Go, and Team Perks services to avoid the complexity and high commissions of UberEats, Ritual, and Skip The Dishes.

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OTTAWA & TORONTO, Canada —– June 6, 2018 – ChangeJar, the mobile commerce company, today announced the launch of new mobile services designed specifically for Canada’s independent food and beverage retailers who want to add popular mobile services like Order Ahead without the prohibitive commissions and transactions fees of competing solutions.

 

The new services are now available to restaurants, coffee shops, and food trucks at up to 20 times less than major take-out and delivery apps, which typically charge sales commissions between 10% and 30%.

 

Those commissions stand in stark contrast to the food service sector’s average profit margins of just 2.7% as identified in an April 2018 Conference Board of Canada report.

 

The ChangeJar platform bases it services on mobile cash, not credit or debit cards, and this has enabled it to eliminate the high processing fees associated with traditional electronic payment methods. 

 

Designed from the ground up for mobile commerce — not as a stripped-down version of desktop services — ChangeJar delivers the easy-to-use experience that customers demand while boosting business for food service retailers. 

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New Mobile Services Launched

ChangeJar’s new mobile commerce services include:
 
  • Order Ahead – lets customers skip the line with pre-ordering and payment from a mobile menu for take-out or dine-in service.
  • Team Perks – lets coffee shops and restaurants partner with local businesses for employee discounts on coffee and food. 
  • Scan & Go – lets customers save time with mobile self-checkouts on low-cost, high-frequency items such as soft drinks. 
 All ChangeJar services are supported by the company’s automated Smart Rewards engine that enable instant and ‘next purchase’ incentives that increase purchase sizes, loyalty, and off-peak sales

Alternative To Credit Cards

Consumers top up their ChangeJar via secure Interac e-transfer or by exchanging physical cash at any of over 6,000 Canada Post locations, so no credit card is needed to add funds and make purchases, making ChangeJar the most inclusive form of mobile commerce yet.

 

Consumers access ChangeJar-powered services via the company’s mobile app for iPhone or Android. They can also make purchases via the company’s chat-based interface on Facebook Messenger which lets them skip the app download.

 

Canadian Food Retailers Falling Behind

ChangeJar Co-founder and CEO Tom Camps

On top of rising rents, labour costs, and food prices, Canada’s food service retailers have also been under pressure from global restaurant chains who are placing increasing emphasis on their mobile services.

 

However, according to Restaurants Canada’s most recent Outlook Survey, just 24% of Canada’s full-service restaurants, and only 20% of quick-service restaurants, are currently using mobile take out and delivery apps.

 

Tom Camps, ChangeJar founder and CEO stated; 

 

“Mobile services like Order Ahead are no longer nice-to-haves for Canada’s services sector. They are absolutely essential in order to compete and should increase sales, not be a loss leader. In our opinion, Canada’s retailers want and deserve better than the ten, twenty, or even thirty percent sales commissions charged by most food take-out and delivery apps.”

 

Camps continued;

 

“By basing ChangeJar on mobile cash rather than costly credit cards and Visa Debit, we’re able to offer mobile services up to twenty times less than our competitors. For the first time, Canada’s independent food service retailers can afford to compete on a daily basis with Starbucks, Tim Hortons, and other global retail giants.”

Available Now With Offer

The new ChangeJar mobile services are available now to Canadian restaurants, coffee shops, bakeries, and food trucks.

 

For a limited time, the company is also offering new retailers signing up to the Order Ahead service a free $125 advertising campaign on Facebook or Instagram.

 

Canadian retailers can register now by visiting changejar.com

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About ChangeJar

ChangeJar is the easiest and most profitable way to build mobile commerce applications. ChangeJar is built on mobile cash, not credit or debit cards, so it has unique unit economics and never needs to charge payment processing fees. 

 

Our mobile commerce applications include Order Ahead, Scan & Go, Team Perks, and Park & Go. All in-store and online ChangeJar transactions are supported with a set of Smart Rewards features that enable retailers to offer instant and same day discounts that drive loyalty, multi-item purchases, and repeat visits. 

 

For consumers, ChangeJar supports native Android and iPhone apps and is built into Facebook Messenger, so 1.3 billion consumers are automatically ChangeJar-ready. 

 

ChangeJar is a Canadian company with offices at Invest Ottawa / Bayview Yards and the IBM Innovation Hub in Toronto. Read our story here

 

For press enquiries please email Chris McLellan at media@changejar.com or visit changejar.com/media

Related Stats & Stories

“Canadian full-service restaurants average only 2 percent profit — less than the 2.3 percent average for food businesses like cafés, cafeterias, concessions, food trucks and fast food restaurants.” Source: Conference Board of Canada, “High Debt Levels To Dampen Canadian’s Appetite For Eating Out” (April 24, 2018). 

 

“When asked the likelihood of dining out if menu prices during at off-peak times a 30% discount appealed to 65% of 18 to 34 year olds, compared to 58% of Canadians 50 years of age or older.”  Source: Restaurants Canada Blog, “Can Discounts Help Boost Traffic?

 

“Most of the 2017 growth in Canadian restaurant revenue was due to inflated menu prices.  Menu prices are expected to climb another 3.8 percent in 2018 due to increases in minimum wage and other employment costs.” Source: Chris Elliott, Senior Economist, Restaurants Canada blog, “Higher menu prices take a bit out of real food service sales growth” (April 15, 2018).

 

“In the US, advanced mobile ordering at QSRs (Quick Service Restaurants) could be a $38 billion segment by 2020. 63% of American smartphone owners — and 94% of millennials — have used their phones to place fast-food orders.” Source: PYMNTS.com, “What Innovative QSR restaurants are doing right now” (April 25, 2018)

 

“In 2015, California chain In-N-Out Burger went so far as to sue Doordash in order to have their restaurants removed.” Source: Corey Mintz, TV Ontario Blog post: “How meal-delivery apps are hurting your favourite restaurants” (February 12, 2018)

 

“Starbucks has 14.9 million US Rewards members, and the mobile order-ahead service, which helps drive app usage, comprises 12% of its US transactions, making it extremely valuable.” Source: Jaime Toplin & Rachel Green in Business Insider Intelligence Payments Briefing (May 21, 2018)