Delivery apps takes big bite out of restaurant profits
Finally, meal delivery services offered by DoorDash, Grubhub and Uber Eats may be convenient.
But they also take a significant bite out earnings from local restaurants.
Just how much varies widely. And trying to decipher how much by looking at your receipt isn't easy because the app companies aren’t exactly transparent about who receives what share of the bill.
But the Washington Post (free link) has just published a good explainer. They asked a team of reporters to order the same meal from the three apps companies and also directly from the restaurant.
When ordered directly from the restaurant for pickup, the restauranter received nearly the full $22.22 paid by the customer (minus credit card fees)
But even though the restaurant charged $28.38 for the same meal on Uber Eats, the business only received $14.48 back.
That was, at least in the Post’s example, better than how much they received from GrubHub (cost: $31.23, payout to restaurant: $12.47) or DoorDash ($24.63 and $10.59).
“If the delivery companies didn’t exist, customers would go back to ordering straight from me over the phone or from my website, and I would actually be able to make money on the orders again,” the restaurant operator told the Post.
“[But] If I decide to not use them anymore,” he said, “it would be shooting myself in the foot.”
The Post article also breaks down how difficult it can be for drivers to make money, given the wear and tear on their cars and gas prices.
Bottom line? If your schedule and circumstances allow, order your take out directly from the restaurant or its website and pick it up yourself.
Looking for some great local restaurant suggestions? We can help.
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