LA restaurant owner reveals the crippling effect of using delivery services like Postmates
One LA restaurant asks customers not to order from Postmates, Caviar, or DoorDash, saying that these delivery apps are charging restaurants 20 percent of each order, crippling them financially during an already difficult time.
Ronan, a restaurant on Melrose Avenue in Los Angeles, shared on Instagram Tuesday that they spent a whopping $ 35,000 on app delivery fees last year.
This hit them particularly hard in 2020, when the pandemic was already devastating restaurant revenue in the US.
Motorway robbery: LA Restaurant Ronan slams delivery service apps Postmates, Caviar and DoorDash for their sky-high commissions
Expensive: Ronan spent a whopping $ 35,000 on app delivery fees in 2020 despite the pandemic weighing on their business
“We just got our year-end financials back … Not only did we lose money (a given, a pandemic, and everything), we also spent $ 35,000 on delivery service fees to insult the violation,” Ronan’s Instagram read -Post Office .
“Yes, we get 20% of your order when you order from us through @postmates @caviar or @doordash,” he continued.
However, there is one delivery app that Ronan applauded: ChowNow.
They said ChowNow Restaurants charges a flat fee of $ 1,500 for two years of service with no hidden charges.
“Please order via @chownow … whenever possible for collection or delivery and help us to determine this number in 2021,” concluded the post.
Feud: Restaurants have been complaining about delivery services for years, accusing apps like Postmates and Seamless of overcharging orders
For what? According to Eater, most restaurants charge 15 to 30 percent of each order, which means they earn significantly less than customers pay
Restaurants have been complaining about delivery services for years and accusing apps like Postmates and Seamless of overcharging orders.
According to Eater, most restaurants charge 15 to 30 percent of each order, which means they earn significantly less than customers pay.
Food & Wine reported in March 2020 that the Samesa restaurant in Brooklyn, New York had signed a contract with Seamless that gave the app a 25 percent commission.
Reem’s in Oakland, Calif., Pays over 20 percent after the owner worked exclusively with Seamless and negotiated a slightly lower rate.
Bhuna, an Indian restaurant in Portland, Oregon, pays 27 percent commission on caviar, 30 percent on Grubhub, and 30 percent on postmates.
In February 2019, when a San Francisco restaurant called Gaslamp Cafe was closed, they hung a sign in their window that read, “Online ordering hurts businesses more than it helps. Any profit from the sale is offset against the fees they charge the restaurant, leaving only enough to cover the cost of groceries. ‘
Read it and cry: In April 2020, Giuseppe Badalamenti, owner of the Chicago Pizza Boss, demonstrated on Facebook how much business is being lost with apps like Grubhub
And in April 2020, Giuseppe Badalamenti, owner of the Chicago Pizza Boss, demonstrated on Facebook how much business is being lost with apps like Grubhub.
“Stop believing that by ordering from a third party you are helping your community,” he wrote. ‘From nearly $ 1,100 orders, [the] The restaurant you want to sponsor isn’t even getting $ 400. It’s almost enough to pay for the food. ‘
He added a picture of his restaurant’s March statement from Grubhub, which included orders through the app for $ 1,042.63.
Then there were the fees: commission, delivery commission, processing fee, and promotions that made Chicago Pizza Boss just $ 375.54.