UPDATE: How GrubHub is Robbing Restaurants (& Breaking Laws)


*** You'll wanna read till the end because Grubhub reps are literally trying to break laws right now ***


So a couple days ago I wrote about how Grubhub robbed over 60% of gross revenue away from a restaurant. You can see the proof of statement below (from a pizza restaurant in Chicago)


Now, I've got even juicier news, and it takes a couple of twists and turns.


In response to the high commission fees that delivery apps like Grubhub are charging - all at about 30% from gross sales - Washington, DC finally joined Seattle and San Francisco in being the 3rd area to cap commission fees at 15%.


This means that for every sale, delivery apps like Grubhub or Uber Eats can only take away 15% in commission fees max, which would give restaurants more breathing room to operate. So rather than taking away $1400 from $2000 in sales, they'll now be able to take away $1700 in gross so that they can split amongst fixed costs like rent, food, and labor costs.


BUT HOLD UP...

Check out this text exchange between a restaurant owner (whose name I will not disclose for obvious reasons) and a Grubhub rep in Washington, DC.


Although the laws are capping commission fees to be at 15%, it looks like Grubhub hasn't caught on yet as they are insisting on keeping their fees at 22.5%...


Once I get word back on this, I will keep you guys posted. Meanwhile, stay tuned to our website as well as Instagram, where we are most active:


Instagram.com/eatthecapital

Instagram.com/dannygrubs

tiktok.com/@danny.kim


The bottom line of all of this is if you guys are able to, PLEASE order directly from restaurants so they don't have to give a large percentage of the money you're paying them to these third-party delivery apps like Grubhub, Uber Eats, etc.


Order directly from your favorite restaurants for pickup and even ask if they do delivery to where you are.


You'd be surprised at how many restaurant owners are delivering the food themselves.



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