How GrubHub, Yelp, and Groupon Attracted Restaurant Owners in Their Early Days

GrubHub, Yelp, and Groupon were each in a unique position to attract and onboard restaurant owners as they launched their respective platforms. Each company utilized a combination of direct outreach, value propositions, and tactical marketing strategies to achieve this. This article will delve into the methods employed by each company.

GrubHub: Direct Outreach and User-Friendly Technology

Direct Outreach: GrubHub took a hands-on approach by personally reaching out to local restaurants, often visiting them in person to demonstrate the potential benefits of being listed on their platform.

Value Proposition: GrubHub highlighted how being listed on their platform could lead to increased orders and revenue, particularly in urban areas where demand for delivery services was on the rise.

User-Friendly Technology: They provided an intuitive interface that was easy for restaurant owners to manage their menus and orders, making it appealing to tech-savvy and non-tech-savvy establishments alike.

Promotional Offers: GrubHub also ran promotional campaigns such as waiving fees for the first month, providing marketing support, or offering additional perks to attract more businesses to join.

Yelp: Free Listings and Community Building

Free Listings: Yelp began by offering free business listings, which was a significant draw for restaurant owners who were initially hesitant to invest in an online presence.

Building Community: The platform encouraged users to write reviews, fostering a sense of community between restaurants and their customers. This engagement was key in convincing owners to maintain and improve their profiles.

Local Marketing: Yelp emphasized the importance of an online presence to local businesses, showing that positive reviews could attract more foot traffic to their establishments.

Advertising Options: Once businesses were onboarded, Yelp provided paid advertising options that helped restaurants promote themselves further, creating a revenue stream for the platform while also benefiting the businesses.

Groupon: Attractive Deals and Local Partnerships

Attractive Deals: Groupon focused on offering significant discounts to customers, which helped restaurants fill seats during slow periods. This proved to be extremely appealing to restaurant owners looking to increase visibility and sales.

Risk-Free Marketing: The platform presented its service as a low-risk marketing strategy, where restaurants only paid a percentage of the revenue generated from the deals. This was attractive to owners who were hesitant about upfront costs.

Local Partnerships: Groupon formed partnerships with local businesses and community organizations to build credibility and attract more restaurants to the platform.

Success Stories: To further incentivize restaurants, Groupon showcased success stories from other businesses that benefited from their deals, providing social proof and encouraging new establishments to join.

Summary: Common Threads

While each company used different tactics, the common thread among GrubHub, Yelp, and Groupon was the emphasis on providing immediate value to restaurant owners. Their strategies focused on building relationships, demonstrating tangible benefits, and reducing the perceived risks associated with joining their platforms.

Frequently Asked Questions (FAQs)

1. What were the main value propositions of GrubHub?

GrubHub's value propositions included increased orders and revenue, a user-friendly interface, and promotional offers like waived fees for the first month.

2. Why did Yelp start with free listings?

Yelp started with free listings to lower the barrier to entry for restaurant owners, making it easier for them to create a profile without any upfront costs.

3. What made Groupon’s deals attractive to restaurant owners?

Groupon's deals were attractive because they offered significant discounts to customers, and the strategy was presented as low-risk marketing, reducing upfront costs for the owners.

Conclusion

GrubHub, Yelp, and Groupon each had unique approaches to attract and onboard restaurant owners, focusing on providing immediate value, building relationships, and reducing risks. By understanding these strategies, current and potential business owners can build more effective online presence strategies for their restaurants.