Cloud Ordering Platform Fee Extraction
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Solution Overview
Problem
Restaurants face high fees from food delivery applications that are passed on to customers, leading to increased menu prices, which is not advantageous for either party.
Innovation Solution
A cloud-based web application that allows restaurants to input their menu and process orders through a smartphone application, where restaurants pay a monthly subscription fee and agree not to increase prices, enabling customers to order directly and pay a flat subscription fee for unlimited orders without additional service fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If restaurants use existing food delivery applications, then customers can order food conveniently, but restaurants must pay high fees (30-40% or more) which are passed on to customers increasing menu prices
Solution Approach 1:
The patent extracts the harmful fee structure from the food delivery system by creating a new platform where restaurants pay only a small technology fee (around 2.99% per order) instead of the traditional high service fees (30-40% or more). This extraction eliminates the harmful factor while preserving the convenient ordering function.
Solution Approach 2:
The patent inverts the traditional fee structure by making restaurants pay a small technology fee rather than customers bearing the high service fees. This inversion reverses the harmful economic dynamic where restaurants were forced to pass on high fees to customers, thereby increasing menu prices.
2Reliability
If restaurants increase menu prices to compensate for delivery fees, then restaurants can cover their costs, but customers face higher prices reducing value
Solution Approach 1:
The patent extracts the harmful fee component from the customer experience by separating the technology cost from the menu price. Restaurants pay a small fixed technology fee (2.99% per order) which covers platform costs, eliminating the need to embed high fees into menu prices that customers would perceive as reduced value.
3Adaptability or versatility
If customers use existing food delivery applications, then they can access multiple restaurants, but they are charged additional service fees, taxes, delivery fees and gratuity
Solution Approach 1:
The patent extracts and eliminates the multiple additional fees (service fees, taxes, delivery fees, gratuity) that customers were charged when using existing food delivery applications. The new system maintains the ability to access multiple restaurants while removing these harmful additional charges.
Data Source
AI summary
Disclosed is a wireless system and method that enables restaurants to input their menu and other information and enables customers to order food on the computerized application and process these orders on a restaurant personnel smartphone application. In certain embodiments of the disclosed system and method, restaurants pay a monthly subscription fee and agree not to increase their menu prices for orders placed through this application.