+
Food Media

Restaurants struggle with delivery fees during lockdown

tre2012 | Jun 10, 202008:35 AM     5

As Diners Flock to Delivery Apps, Restaurants Fear for Their Future
While the apps say they are saving them in the pandemic, many restaurateurs say the opposite.
NY Times June 9, 2020

(excerpt) Before the coronavirus lockdowns, Matt Majesky didn’t take much notice of the fees that Grubhub and Uber Eats charged him every time they processed an order for his restaurant, Pierogi Mountain.

But once the lockdowns began, the apps became essentially the only source of business for the barroom restaurant he ran with a partner, Charlie Greene, in Columbus, Ohio. That was when the fees to the delivery companies turned into the restaurant’s single largest cost — more than what it paid for food or labor.

Pierogi Mountain’s primary delivery company, Grubhub, took more than 40 percent from the average order, Mr. Majesky’s Grubhub statements show. That flipped his restaurant from almost breaking even to plunging deeply into the red. In late April, Pierogi Mountain shut down.

“You have no choice but to sign up, but there is no negotiating,” Mr. Majesky, who has applied for unemployment, said of the delivery apps. “It almost turns into a hostage situation.”

As Diners Flock to Delivery Apps, Restaurants Fear for Their Future

While the apps say they are saving them in the pandemic, many restaurateurs say the opposite.

www.nytimes.com
Want to stay up to date with this post? Sign Up Now ›

More from Chowhound

How to Stick to Healthy Eating Resolutions for the New Year
Guides

How to Stick to Healthy Eating Resolutions for the New Year

by Brianne Garrett | New year, new me. It’s a popular mantra that we all tell ourselves going into a new year—vowing that...

5 Plant-Based Swaps for the Carbs You Crave
Guides

5 Plant-Based Swaps for the Carbs You Crave

by Gretchen Lidicker | Trying to cut carbohydrates? There are plenty of great plant-based substitutes for your favorite carbs...

13 Easy Ingredient Swaps for Healthier Cooking
Guides

13 Easy Ingredient Swaps for Healthier Cooking

by Dan McKay and Jen Wheeler | These easy, healthy ingredient swaps are proof that eating healthy doesn't have to be a chore. Even...

9 Easy Low Sugar Breakfast Recipes to Start Your Day Off Right
Recipe Round-Ups

9 Easy Low Sugar Breakfast Recipes to Start Your Day Off Right

by Gretchen Lidicker | If you want to eat less sugar, finding no-sugar and low sugar breakfast recipes that are both easy...

Get fresh food news delivered to your inbox

Sign up for our newsletter to receive the latest tips, tricks, recipes and more, sent twice a week.