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Business Operations Business Models

How Does ChowNow Make Money (Business and Revenue Model)

The ChowNow business model

ChowNow logo
Here’s what you should know:
  • What is ChowNow, and how does ChowNow work?
  • How does ChowNow make money?
  • Subscription Fees (ChowNow Direct)
  • Order Fees (Order Better Network)
  • Flex Delivery and Pickup (Partnered with DoorDash)
  • Add-On Services
  • ChowNow profit and revenue
  • What is the ChowNow business and revenue model?
  • ChowNow funding, net worth, and valuation
  • ChowNow subsidiaries, acquisitions, and exits

How does ChowNow make money? Well, here is a full, in depth, breakdown of their four (4) revenue streams and the different products and services they offer, as well as the ChowNow business and revenue model, how much ChowNow makes per year, and how ChowNow works.

What is ChowNow, and how does ChowNow work?

ChowNow is a company that offers products and services to local restaurants to help them grow.

Founded in 2011 by Christopher Webb and Eric Jaffe, ChowNow now has more than 20,000 restaurants using its online food ordering platform.

So, how does ChowNow work? To use ChowNow if you’re a restaurant, simply visit their website and look through the various products and services they offer.

If you’re interested in one of the services, follow the on-page instructions on how to join. It’s usually a call-to-action button like “Sign Up” or “Get Started”. Once you fill out all the necessary info ChowNow asks for, wait for someone from their team to get in touch with you.

Some of ChowNow’s competitors include DoorDash, Grubhub, PostmatesUber Eats, Square, and other platforms that offer services to local restaurants.

ChowNow App in Apple App Store | ChowNow Business Model | How Does ChowNow Make Money? | How Does ChowNow Work?
Source: Apple App Store | ChowNow

How does ChowNow make money?

According to ChowNow, ChowNow has more than 20,000 restaurants using its online food ordering platform. So how does ChowNow make money off of all these restaurants?

Below is a breakdown of how much money ChowNow makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 4 ways of how ChowNow makes money in 2022

ChowNow has a revenue model that makes money in four (4) ways; from subscription fees (monthly or yearly), order fees, Flex Delivery and Pickup, and other add-on services.

#1. Subscription Fees (ChowNow Direct)

One of the ways ChowNow makes money is through its service offering, ChowNow Direct.

ChowNow Direct is a service provided to 20,000+ restaurants that offers them a full suite of tools to boost their online presence such as website ordering, automated email marketing, POS integrations, branded apps, membership programs for customers, and more – all for the price of a monthly subscription plus a one-time setup fee. Which you can see below.

How much does ChowNow cost? (ChowNow fees)

  • Subscription fee: $199 per month, or $1,548 to $3,096 for a 1 or 2 year prepaid subscription
  • Setup fee: $399 per location (one-time fee)
ChowNow Direct | ChowNow Business Model | How Does ChowNow Make Money? | How Does ChowNow Work?
Source: ChowNow

#2. Order Fees (Order Better Network)

ChowNow also makes money through another service that they offer to local restaurants, which is their Order Better Network.

The Order Better Network is a service that will take and integrate a restaurant’s menu and place it on all of the world’s most popular and high traffic ordering sites that diner customers are on so it will increase a restaurant’s orders and profits.

Some of the platforms on the Order Better Network include OpenTable, Yelp, Tripadvisor, Google, Apple Maps, Nextdoor, Snapchat, and more.

A service like this of course comes at a price. That price is a 12% order fee added to every order placed through the Order Better Network. Which the restaurants can choose to either pass those costs onto the customer by raising their menu prices by 12% or the restaurant can just pay the costs themselves. Which you can see below.

What percentage does ChowNow take? (ChowNow pricing)

  • Order fee: 12% of every order placed through the Order Better Network
  • Setup fee: $199 (one-time fee)

Note: All services offered by ChowNow have expensive one-time setup fees.

#3. Flex Delivery and Pickup (Partnered with DoorDash)

ChowNow partners with DoorDash to bring delivery service to restaurants that do not have (enough of) their own delivery drivers.

The way it works is: when a restaurant decides to use ChowNow’s Flex Delivery service, ChowNow connects the restaurant with a team of drivers DoorDash Drive as well as provides them with ChowNow’s full-service, 24/7 delivery support. Although this service can get pricy – which you can see below.

How much is the ChowNow Flex delivery fee?

  • $7.98 delivery fee, per delivery ($3.99 is paid by both the restaurant and customer)

Note: From the $7.98 delivery fee, it’s unclear how much money ChowNow makes; as the percentage split between ChowNow and DoorDash is unclear.

#4. Add-On Services

Lastly, ChowNow also offers restaurants more services that they can add on to their current services with ChowNow.

Some of these add-ons include things like product photoshoots, POS integration solutions for the restaurant, ChowNow tablet rentals that will cost restaurants an additional $20 per month per tablet, and more.

Note: Most of the costs for these add-ons are unclear as their website only mentions the add-on services available without pricing.

ChowNow profit and revenue

ChowNow has not released any official reports in regards to company earnings.

Note: Because ChowNow is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the ChowNow business and revenue model?

ChowNow makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Fee for service (FFS) business model
  • À la carte business model
  • Cross selling business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

ChowNow funding, net worth, and valuation

According to ChowNow’s Crunchbase profile, ChowNow has raised $64 million over 9 rounds and has a post-money valuation of $100 million to $500 million as of May 8, 2019.

ChowNow subsidiaries, acquisitions, and exits

To date, ChowNow has not made any acquisitions, investments, or exits.