Direct Ordering vs Third-Party Platforms: Strategies to Boost Margins for Hawker Stalls and Cafes

Singapore's hawker stalls and cafes can significantly boost margins by adopting direct ordering strategies rather than relying solely on third-party delivery platforms, which typically charge 20-30% commissions.

Direct Ordering Advantages

Commission-free models eliminate the largest cost burden. Platforms like Marketplace @ WhyQ and BySGForSG charge hawkers zero commission and no setup fees, instead passing a modest 6% surcharge to customers. This contrasts sharply with traditional delivery apps (Deliveroo, GrabFood, Foodpanda) that take substantial cuts from each order.

Self-delivery and pickup options preserve more revenue. The #savefnbsg coalition encourages customers to order directly from restaurants, with delivery handled through private hire, courier, and taxi drivers—ensuring delivery fees go directly to drivers rather than platform operators. This approach allows hawkers to retain the full menu price.

Technology-Enabled Direct Ordering

QR code payment systems enable rapid digital adoption without complex infrastructure. Platforms like HitPay offer transparent, pay-per-use pricing with no setup or monthly fees, allowing hawkers to print unified PayNow-GrabPay QR codes within minutes. This removes technical barriers for less tech-savvy operators.

Online ordering systems with minimal overhead support direct sales. Self-ordering kiosks and QR ordering allow simultaneous order receipt without intermediary platforms.

Hybrid Approaches

Singapore's emerging common acquirer model offers a middle ground. Under this scheme, WhyQ aggregates orders across multiple delivery platforms (Deliveroo, FoodPanda, Grab) while charging hawkers zero commissions and no onboarding fees. Hawkers receive same-day payments and manage all orders through a single interface or on-site hawker captains.

Community-based initiatives reduce costs further. Bulk meal orders, Facebook community group buys, and volunteer-managed listings (as offered by BySGForSG) lower operational complexity for hawkers unfamiliar with technology.

The most margin-friendly strategy combines direct ordering infrastructure with selective participation in commission-free aggregator platforms, allowing hawkers to reach customers across multiple channels without sacrificing profitability.