A new route from restaurant software to diners
Olo is taking its restaurant ordering technology directly to consumers, entering a delivery market where menu markups can raise the cost of a meal. Its new namesake app lets customers order takeout and delivery from national chains and local restaurants. The move changes who Olo is trying to reach: the company has built its business around serving restaurants, and now it’s asking diners to use its own ordering destination.
That shift extends Olo beyond its established role as a business-to-business provider of ordering software. The company already works with restaurants including Waffle House and Frank Pepe’s, a New Haven, Connecticut, pizzeria. Those relationships give the app a starting point, but a restaurant’s existing connection to Olo doesn’t by itself guarantee that customers will download another app or change their habits. In delivery, convenience matters as much as the price shown on a menu, and a new platform has to earn a place in a routine that may already involve familiar services.
Price transparency is the pitch
Olo says its app doesn’t mark up menu items and estimates customers could pay 15% to 30% less per item than on comparable platforms such as Uber Eats and DoorDash. That claim puts price visibility at the center of its bid to attract diners, alongside its existing restaurant relationships. It’s a useful point of comparison, though the estimate applies to menu items; customers still need to consider the full order cost, including any fees shown before checkout.
Here’s the thing: a lower listed item price can make a service look compelling, but diners usually judge an order by what they’re asked to pay in total. Delivery charges and other costs can affect that final amount, and the source doesn’t provide a like-for-like comparison of complete orders. Olo’s estimate is therefore a pitch about one part of the bill, not a guarantee that every customer or every order will cost less.
Olo commissioned research that points to a gap in consumer awareness: while people generally expect delivery fees, just 27% of American adults know that platforms may also mark up menu prices. The distinction could matter to customers comparing the total cost of an order. If people don’t realize menu prices can differ between ordering channels, they may compare fees while overlooking a separate part of the bill.
That awareness gap gives Olo a clear message to take to consumers. It also leaves a practical question: will explaining menu markups change where people order, or will convenience and familiarity continue to carry more weight? Research commissioned by a company with a product to promote can help describe the case it’s making, but the app’s performance will depend on what diners actually do.
“Ordering food should be simple for guests and fair for the restaurants that serve them,” said Corey Kline, executive vice president of technology at Noodles & Company, in Olo’s press release. The statement captures the fairness argument behind the launch: restaurants and diners may both welcome clearer pricing. It’s an endorsement of the idea, though it doesn’t establish how broadly restaurants will participate or whether customers will adopt the app.
What the shift means for Olo
Olo’s move from restaurant technology provider to consumer platform gives it a new way to connect its restaurant network with diners. Its appeal will depend on whether customers value item prices without markups enough to make the app part of their ordering routine. This is more significant than it looks: Olo is trying to turn its existing business relationships into a direct consumer channel, which asks the company to compete on the experience customers see, not just on the software restaurants use.
That creates a different test for the company. A business-to-business provider can be valuable to restaurants without becoming a household name; a consumer app needs regular use. The gap between those goals is real. The app must make it easy for diners to find participating restaurants, understand the price, and complete an order, while giving those restaurants a reason to support the channel.
If you’re working in this space, the question is whether price transparency can stand out once customers compare the complete ordering experience. Lower item prices may help get attention, and an existing restaurant network may give Olo a head start. Neither point alone shows that the app will become a habit. Familiarity, selection, and the final checkout total will all shape whether diners return.
The test ahead
Olo has put a specific consumer concern at the center of its launch: menu prices can differ across platforms, and many people may not know that. That’s a straightforward proposition. The harder part is converting awareness into repeated use, especially when shoppers already have ways to order from restaurants they know.
For now, the case for the app rests on Olo’s stated pricing approach, its restaurant relationships, and the possibility that diners will respond to clearer item prices. The company’s own estimate suggests a meaningful potential difference on menu items, but it doesn’t answer how the service will perform across full orders or how customers will respond over time. And yet, the pitch has a sound consumer logic: people can’t compare a cost they don’t know exists. The proof will be whether that insight changes where they place the next order. A promising premise. A market share to earn.
