…The copycat website controversy brings to light a major issue among restaurant owners as delivery becomes more popular among consumers. Many chains are complaining that they are losing control of their online presence as they become more reliant on third-party companies to do everything from delivery to developing loyalty programs. The solutions come at hefty prices, cutting into already thin profit margins. And, in some cases the third-party aggregators own valuable consumer data.
The impact delivery is having on restaurant operators was the subject of a New York City oversight hearing last week. In that hearing, delivery operators and restaurants debated the incrementality of delivery and the hefty commission fees associated with the service.
“The hearing confirmed our belief that restaurant operators desperately need aggregators, but that the relationship is past the honeymoon period,” BTIG analyst Peter Saleh said in a post-hearing report.