Just Eat shares have suffered a 16% fall in the last 20 days. The share price has fallen from 494.50 to 415.20, a fall of 79.30 since December 30, 2015 to January 18, 2016. One of the reasons for the 16% fall could be what we believe to be the adverse ruling that Menulog received in the Victorian Civil and Administrative Tribunal brought against it by a disgruntled Restaurant. The case, which we understand revolved around some of the tactics used by Menulog, comes after the damaging Australian Financial Review article, which highlighted concerns that many restaurants have over brandjacking and the market power that Menulog now has, since it’s acquisition of Eat Now. It’s failure to seek ACCC permission for the merger leaves Menulog in a precarious position, with the ACCC having 5 years to review the merger and to potentially order it’s unwinding.
Just Eat Shares after the Menulog acquisition
Just Eat shares have been on a roller-coaster ride since the acquisition of Menulog, with many thinking that Just Eat overpaid significantly for Menulog, and with the recent issues that Zomato has seen, maybe the bubble is about to burst on the online ordering market.
Free Menulog alternative continues to grow.
Added to the legislative pressure that Menulog is facing is the increasing number of Restaurants who are signing up for the Free Restaurant OnLine Ordering system, FROLO. Combing rapid payments for the Restaurants to ease cash flow with a 0% Commission and the ability for the Restaurant to collect email addresses of their customers, the Free Restaurant OnLine Ordering system brings an alternative to Restaurant owners looking to cut the costs of taking orders online without needing to give away customer email addresses.
One customer using FROLO nearly sold out of food one Saturday night following a small marketing campaign driving customers to order take out. Listen to Secret Sauce, the Restaurant Marketing Podcast, which details exactly how he did it.
Is Poor SEO Killing Your Restaurant?
Too many times we see customers with websites that are costing restaurants thousands of dollars every month through poor design, poor messaging and poor SEO. If your website could be improved to bring in 200 extra visits per month and just 10% of those made a booking, and each booking was for 2.5 seats on average at $50 a seat, you would have an extra $2,500 in revenue a month. A 30% food cost, that is $1,750 in profit extra a month. This ignores those customers coming back as regulars – which is more profit.
Remember, if these customers aren’t finding your Restaurant, they are finding your competitors.
Get one of our obligation free 7 point website SEO audits to see what you can get your web developer to fix to increase your revenue today.