SAN ANTONIO – Companies like Grubhub, DoorDash and Uber Eats charge restaurants huge fees for home delivery.
That could be changing soon in San Antonio.
“I think the fees are incredibly high,” says Bill Deiri, director of operations at Pasha. “I felt it was exorbitant even without the pandemic.”
He is pushing for a cap.
Bill Deiri is Pasha’s director of operations. (SBG photo)
And Deiri has the ear of councilman Manny Palaez, who broached the topic with Council during Thursday’s weekly session.
“It turns out that these fees can be as high as 30 percent sometimes,” Palaez says, “making it very difficult for restaurants during this difficult time to make a single buck.”
Restaurant owners don’t feel they can opt out of the delivery services.
The apps are particularly appealing to younger customers.
During the pandemic, a new wave of customers has started using the apps.
“If you’re not on those applications, you are going to miss out on people’s business,” Deiri says. “If you don’t jump on there, you get somewhat left behind.”
Deiri wants to see the fees capped at a much lower rate.
“I think somewhere in the neighborhood of 10 (percent),” he says. “I think that would be fair.”
Councilman Manny Palaez. (SBG photo)
Other cities have already taken action to curb the fees delivery companies charge. San Francisco has a cap at 15 percent. Chicago is shooting for 5.
“And they’re not only charging us,” Deiri says, “they’re charging the people who are receiving the food as well.”
During the pandemic, the fees for residents have been waived by some delivery companies. But when Deiri tried to get a break on the fee he has to pay, he was turned down.
“I’d love to see something done, especially now,” says Deiri, whose restaurant in the Vineyard reopened for in-store dining today. There was one customer taking advantage of that service at lunch time.
“All restaurants are depending on that type of business right now,” Deiri says of delivery service. “People are scared . They don’t want to go out to eat right now. But we could use some help. It (a 30-percent fee) doesn’t leave very much profit-wise for any restaurateur.”
Palaez is expected to push for council action as soon as next week.