Background

California Pizza Kitchen is a well-established brand in the restaurant industry, known for its innovative pizzas and diverse menu. With over 60% of their business occurring on-premise and 40% off-premise, digital ordering and third-party delivery have become a critical part of their revenue stream. However, as the business adapted to post-COVID shifts, CPK faced challenges in managing the profitability of their off-premise sales, particularly with third-party platforms like DoorDash and Uber Eats.

To address these challenges and improve profitability from digital sales, CPK partnered with Linked Eats to implement the Revenue Recapture product. This solution was designed to help recover revenue lost due to order errors, missing items, and refund disputes on third-party platforms.

Challenges

1. Resource Prioritization: With a lean operational team and legacy tech systems, CPK’s biggest challenge was determining how to allocate resources effectively to maximize profitability from both in-store and off-premise sales. Managing multiple third-party platforms with varying levels of sophistication and support created an additional layer of complexity.
2. Perception of Third-Party Platforms: Internally, CPK, like many restaurant brands, dealt with preconceived notions that third-party delivery platforms were detrimental to profitability, as some believed the brand was “giving food away” due to high fees and refunds.
3. Revenue Loss from Third-Party Orders: CPK found that managing refunds and chargebacks from third-party platforms was a significant drain on profitability. They needed a solution that could streamline this process and recapture lost revenue.

Solution: Linked Eats Revenue Recapture

CPK integrated Linked Eats’ Revenue Recapture solution to help recover lost profits due to third-party delivery refunds and chargebacks. After an internal recommendation and a comparison against an existing partner, Linked Eats quickly became a valuable solution for the brand.

Why CPK Chose Linked Eats

• Profit Recovery & Flexible Billing: The Revenue Recapture product allowed CPK to recover revenue lost due to errors in third-party orders. Unlike other solutions, Linked Eats offered a more flexible commission structure, which translated into better financial results for CPK.
• Data-Driven Decision Making: Linked Eats provided detailed reporting on recaptured revenue, allowing CPK’s management team to dispel misconceptions about third-party platforms and demonstrate profitability on them when managed correctly.
• Collaborative Partnership: CPK valued the responsiveness and collaborative nature of the Linked Eats team. David Harris, CPK’s VP of Marketing, noted that Linked Eats demonstrated a strong willingness to work with CPK, offering timely support and making sure all questions were addressed quickly. 

Results: $160K Recaptured in first 6 months

• Revenue Recapture Rate: Linked Eats successfully recovered a significant portion of lost profits from third-party order disputes. According to David Harris, “every dollar counts,” and the recaptured revenue directly contributed to the bottom line.
• Operational Efficiency: The implementation of Linked Eats allowed CPK’s lean team to focus on core operations without having to dedicate significant resources to dispute management. The “set it and forget it” nature of the product meant that Linked Eats handled the heavy lifting, and CPK benefited from monthly reports and regular check-ins.
• Profitability Impact: Since recaptured revenue was pure profit—rather than additional revenue—this helped boost CPK’s overall profitability. The impact extended to team bonuses and bottom-line improvements across the brand.

Client Feedback

“Every dollar counts, and it’s profit we’re recovering with Linked Eats. It helps my restaurants, their bottom line, and helps my team members in the restaurants get their bonuses. Linked Eats is like the employee who just sits in the corner and just cranks stuff out quietly, so it’s an easy decision to make.”

David Harris, Director of Ecommerce and Digital Marketing

Key Takeaways for Other Restaurants

1. Ease of Implementation: CPK found the onboarding process with Linked Eats to be smooth, with minimal downtime between switching from their previous provider. The implementation process was well-supported, and the team was readily available to answer questions and provide guidance.
2. Effective Profit Recovery: Linked Eats’ ability to recapture lost profits from third-party refunds was a critical factor in CPK’s decision to partner with them. For any restaurant brand struggling with third-party delivery profitability, this solution can provide a significant financial boost.
3. Scalable for Growth: As CPK continues to grow, including its plans to expand into franchise locations, Linked Eats remains a trusted partner that will be able to scale with the business and provide ongoing support.

Conclusion

California Pizza Kitchen has successfully integrated Linked Eats’ Revenue Recapture solution into its operational toolkit, allowing the brand to recover lost profits from third-party delivery platforms while maintaining operational efficiency. The partnership has proven to be valuable, particularly for a lean team looking to maximize profitability with minimal resources. For other restaurant brands considering similar solutions, Linked Eats offers a flexible, data-driven approach that can deliver tangible results.