Delivery Service Fees... Can restaurants survive?
As you heard on episode 1 of my podcast and have likely seen yourself; companies such as GrubHub, DoorDash, and UberEATS have become a necessity during this pandemic. They have given the consumer something that they wanted, an easy way to have food delivered from their favorite restaurants. While most would see this as only an upside to restaurants receiving the business that just does not tell the whole story.
This image shows an actual deposit for a food truck in Chicago called Chicago Pizza Boss. As you can see they were left with only 36% of the actual sales dollars for the month. That is of course before any cost of goods, labor, and so on. Anyone who creates and runs a business has the right to make as much money as the market can bear. In this case, the restaurants that these apps are built to partner with cannot survive with what is left over. It is time for these apps to reevaluate how they can deliver what the consumer wants while helping prop up the restaurants that give them what they need. At the end of the day restaurants existed long before these apps did and they may not realize it now but they have the power. Without them, the apps don't have anything to deliver.