4/2/2023 0 Comments Which restaurants deliver![]() ![]() And in some regions, smaller apps have emerged as alternatives to the big names.Ĭhomp, an Iowa City-based delivery platform that serves restaurants in the local market and charges about 20% per order, has seen “tremendous growth” during the pandemic, according to co-founder Adam Weeks. Shutterstockīut for some restaurant operators, the concessions are far from sufficient. Some restaurants feel they have no choice but to work with major delivery platforms. And even before the pandemic, some restaurants were able to negotiate lower rates. DoorDash rolled out a new product, DoorDash Storefront, that helps restaurants set up their own online stores and charges a flat fee instead of a per-order commission. Grubhub, which merged with Seamless, lets restaurants decide whether or not to use their own drivers. They also have a variety of options for restaurant operators to give them more control.Īn Uber Eats spokesperson pointed out that though the service charges 30% per order for delivery, in areas where the company can legally do so, that fee falls to 15% if restaurants use their own drivers and disappears for pickup orders. In New York City, third-party apps can charge an additional 5% for other fees, for 20% in total.Īnd delivery services themselves have not been deaf to the plight of restaurants, which are a key part of their own businesses.ĭuring the crisis, some delivery operators temporarily reduced charges to help ease the burden on restaurants. In Denver, New York City, Los Angeles and elsewhere, officials voted to enact a pandemic-related emergency 15% cap on third-party delivery fees. To help restaurants with the pain that some apps might cause, cities across the country have started limiting the fees that delivery apps can charge restaurants. A report released by market research firm Technomic and Uber Eats in July found a 27% jump in restaurant operators using third-party delivery services since mid-March, when some municipalities went into lockdown. And like them or not, restaurants joined delivery platforms in droves: During a May conference call with analysts, Grubhub CEO Matt Maloney mentioned that many new restaurants have signed up for its services since the pandemic reached the United States. Since the pandemic hit, forcing Americans to stay home and restaurants across the country to limit capacity or close their doors entirely, delivery has become a lifeline. Many restaurants are finding themselves tied to delivery services they hate, without a clear path out.ĭelivery has never mattered to restaurants as much as it does now. Those efforts are helping, but they’re not enough to tip the scale. So restaurants are coming up with alternatives to help complement the big players, like perks for customers who order directly and DIY delivery services. And if they choose to outsource delivery to these platforms, restaurants also hand off valuable customer data and control over how delivery orders show up at their customers doors.ĭelivery has become a lifeline for restaurants during the pandemic Alexi Rosenfeld/Getty Images But profit margins in the restaurant industry are often razor-thin, so these fees can wipe out the restaurant’s profits or put them in the red. For these services, they often charge restaurants around 30% per order. ![]() These platforms offer a way for customers to order from local restaurants, process restaurant payments and provide contract drivers to pick meals up from restaurants and deliver them to customers. Restaurant operators complain that third-party delivery providers like Seamless, DoorDash and Uber Eats are prohibitively expensive. You’re not there.” Because so many people order through the app, turning it off would mean losing about 80% of his business overnight, he said. If you’re not on Seamless, “you no longer exist online. But now, he feels that opting out of Seamless is not an option. Palombino used to do just fine with his own delivery fleet, he said. “The worst thing that has ever happened to us is them,” said Mathieu Palombino, owner of the small New York City-based pizza chain. If you visit Motorino Pizza’s website, you’ll be greeted with a plea: Don’t order through Seamless. ![]()
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