Updated: Dec 27, 2020
First Things First,
This is not at all an article about not supporting restaurants listed on Grubhub or Uber Eats. Rather, I am writing this to inform you guys about how much $ these delivery apps are robbing from the restaurants they've signed on, leaving little to no money left for restaurants. That way you can make an even more informed decision before deciding on pickup or delivery.
Speaking to 100's of restaurant owners and chefs, they all agree. To make up for the high commissions that Grubhub and Uber Eats takes, restaurant owners will actually bump up the price on these platforms (which also means you'd be saving money if you can order directly from them for pickup).
For a while now I've been preaching about how people should be ordering directly from the restaurants for pick up if they are able to to ensure that all their money goes directly to the restaurant they want to support, not a 3rd party middleman like Grubhub, Uber Eats, or honestly any other delivery platform.
When I bring up the numbers on how much $$$ delivery apps like Grubhub and Uber Eats remove from restaurant sales, I rarely see a face that comes away unshocked by the numbers. It's pretty crazy actually and I'm about to show you guys a shocking example that surfaced online.
This screenshot of a statement from the Chicago Pizza Boss food truck is wild.
Here's the Breakdown
+$1000 in sales
-$100 delivery fees
-$230 (this is for "promotions", but only 46 orders?)
-$130 order adjustments
= $376 EARNED
Not profit, earned. That's barely anything... We didn’t even account for the food costs and labor costs to operate... if we really break it down, he would end up with close to $0. No profit at all.
Rates for All Delivery Platforms
Now I know you guys are probably thinking, "Okay if Grubhub is robbing restaurants right now, how much are other delivery apps charging?"
Here's how much commission some of the bigger delivery apps take from restaurant orders:
Uber Eats - 30%
Grubhub - 30%
Postmates - 20-25%
DoorDash - 30%
Caviar - 23-30%
*numbers from a restaurant owner I interviewed, who prefers to remain anonymous
Judging by the numbers you might be thinking that the best way to order from restaurants would be through Postmates because they take the least amount of fees off the restaurant sale but hooooold up. There's more to it.
Postmates might be taking only 20-25% commission compared to the 30% from Uber Eats, but their drivers are reportedly terrible compared to Uber Eats.
Uber Eats runs a thorough background check and rates their drivers all the time, whereas a delivery app like Postmates might not care as much about the driver quality. This is very important because a bad driver can turn an amazing, fresh, and tasty meal into a cold, unpleasant meal - due to some circumstances like bad routes, bad handling, misordering, etc.
If you ask any restaurant owner how you can BEST support their restaurant, they almost always will ask you to order directly from them through phone, on social media, or even email. NOT through Uber Eats or Grubhub.
Yes, it is extremely convenient for us to have food delivered right onto the footsteps of our door, but you will most definitely want to consider the amount of money delivery apps are taking away from the restaurants. So when you think you're truly supporting your favorite restaurant, think twice. And know where a lot of your money is going because now you know.
Some restaurants are doing their own delivery. A lot of times, the restaurant owners themselves will drive around to drop off meals for their loyal customers because he or she doesn't have the capacity to be able to pay for staff. It's definitely a unique time, but the verdict here is to make sure to order for pickup directly with the restaurant if you really want to help.
Next article, I'll be talking about one of my favorite groups who have actually taken to delivering food on their own hands. You don't want to miss out so stay tuned to the blog.
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