Financial Analysis

SaaS vs Licensed
Ordering Software TCO

Total cost of ownership is the only fair comparison. The monthly SaaS fee looks manageable — until you model it over 5 years, factor in price increases, and compare it against a one-off licence that you pay for once and own forever.

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The two models: how costs accrue differently

SaaS subscription model

Monthly fee forever

£99–299/mo
example Flipdish / Slerp / Orderbee
  • £1,188–£3,588 per year in fees
  • Prices can and do increase annually
  • Pay whether you're busy or quiet
  • Stop paying = lose access + lose data
  • You never own anything

5-year TCO at common SaaS price points

SaaS monthly priceYear 1 cost5-year cost (no price increases)5-year cost (+15% pa increase)
£49/month (entry)£588£2,940£3,948
£99/month (mid)£1,188£5,940£7,983
£149/month (standard)£1,788£8,940£12,005
£299/month (premium)£3,588£17,940£24,088
Food-Ordering.com licence — all volumes
£3,500 + £10/mo hosting£3,620£4,099 total£4,099 (fixed — cannot increase)
The price increase risk is real: Most SaaS vendors build annual price escalation into their terms. A product priced at £99/month in 2024 is very likely to be £130–150/month by 2026–2028. Over a 5-year contract, the "mid" tier SaaS product easily exceeds £8,000. The Food-Ordering.com licence is £3,500 — permanently.

Hidden SaaS costs to watch for

Per-location fees

Many SaaS ordering platforms charge per-location. A restaurant with 3 locations may be paying 3× the published price — or more if there is a base fee plus per-location addition. Always ask: does the published price cover all my locations?

Payment processing markups

Some SaaS platforms route all payments through their own payment processor and charge above-market rates. A 0.5% markup on payment processing sounds small but at £200,000 annual GMV adds £1,000/year in hidden cost.

API access and integration fees

Need to connect your ordering system to your EPOS, loyalty programme, or accounting software? Many SaaS platforms charge extra for API access or premium integrations. These fees are typically not shown in the headline price.

Data export and portability fees

If you cancel a SaaS subscription and want a full export of your customer data and order history, some vendors charge for this — or simply do not provide it at all. With a licensed system, your data is always yours and always accessible.

The compounding advantage of a licence at scale

For a single restaurant, the maths strongly favour a licence. For a multi-site operator, the advantage is even greater: a SaaS platform charging per location scales its fees with your growth. Food-Ordering.com's licence covers all ordering channels — online, kiosk, CallerID, phone — at all your locations under a single licence with no per-location fee.

A 5-location restaurant group on a SaaS platform at £149/month per location is paying £745/month — £8,940/year — compared to a single Food-Ordering.com licence at £3,500 one-off. The payback period is less than 6 months.

Frequently asked questions

Does the Food-Ordering.com licence price ever increase?

No. A licence is a one-time purchase. Once you have purchased the licence, you own that version of the software permanently. There is no ongoing fee that can be increased. Future versions of the software are available for upgrade at separately published prices, but upgrades are optional.

What happens to the SaaS system data if I cancel?

This varies by provider. Some provide a data export; others do not. Some charge for data export; others make it difficult. This is a critical question to ask any SaaS vendor before signing. With Food-Ordering.com, all order data is stored in your own database on your hosting environment — you always have full access.

Does Food-Ordering.com charge per order?

No. There is zero per-order fee. You take as many orders as your business generates, and the cost to you is the same whether you take 10 orders per week or 1,000.

Run the numbers for your restaurant

Tell us your current monthly software spend or your expected order volume. We will model the 5-year TCO comparison and show you the exact breakeven point.

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