Los Angeles restaurant Ronan shared on Instagram that they spent a whopping $35,000 on app delivery fees last year The post said that Postmates, Caviar, and DoorDash charge them 20% of each order made through their apps The loss was on top of pandemic income losses Only the ordering platform ChowNow was affordable to Ronan with […]
Tag Archives: Commission Rates
Oregon caps delivery app fees charged to restaurants
MILWAUKIE, Ore. — Gov. Kate Brown signed a bill on Wednesday that limits fees charged to Oregon restaurants by third-party apps like Uber Eats, GrubHub, PostMates and DoorDash. Senate Bill 1801 passed the state legislature on Monday, a win for restaurant owners across the state. Sean Sexton, co-owner of Ovation Bistro in Milwaukie, said fees […]
Local food delivery app helping your favorite restaurant stay afloat during pandemic
ALBUQUERQUE, N.M. — As the indoor dining ban in New Mexico continues, a New Mexico tech company is helping numerous restaurants expand their reach by offering delivery services. The Shop Breakfast and Lunch is located at 2933 Monte Vista Blvd. NE in Albuquerque. Rivera said each year business kept growing, and 2020 was supposed to be their […]
DoorDash takes a hefty cut from restaurants, and risks losing them to cheaper options
DoorDash’s commissions, which can reach 30% of an order, are too high for many restaurants to bear. The company’s revenue growth reached 268% in the third quarter as more restaurants turned to delivery to stay in business. “I’d rather spend those marketing dollars to get people directly,” said Salvatore Reina, owner of three Francesca pizzerias […]
DOORDASH TESTS NEW WAYS TO OFFSET COMMISSION CAPS
As governments across the country clamp down on third-party delivery services by limiting what they can charge restaurants, the largest of those companies is testing ways to offset the impact of the caps. In the past month, DoorDash introduced extra fees for consumers in Denver and Chicago. It also announced—and quickly abandoned—a plan to raise fees […]
Greg Bensinger column: Apps are killing the restaurant industry
The sudden onset of the pandemic in March sent the restaurant industry into a death spiral. Working in a notoriously low-margin business, many couldn’t withstand weeks of limited or no indoor dining. As a result, about 1 in 6 restaurants nationwide has closed permanently, and as of September nearly 3 million restaurant workers had lost […]
Grubhub offers restaurants new ways to receive orders—without paying commission fees
Grubhub unveiled new tools that allow customers to order food straight from restaurants without requiring the eateries to pay commission fees. Third-party delivery companies make the bulk of their revenue charging restaurants anywhere from 15% to 30% on every order. The National Restaurant Association estimates that 110,000 establishments have shut down, either permanently or long […]
Two Queen City Entrepreneurs Create Food Delivery Service
Apps like Grubhub and Doordash can help support local restaurants that don’t deliver, and can take a big bite out of a restaurant’s profits. Bob Heil and Steve Ambrose are no strangers to the city of good neighbors. They say after seeing countless numbers of their fellow businesses close up for good due to COVID-19 […]
Colorado county governments will soon be able to limit 3rd-party delivery fees to restaurants
Counties and cities throughout Colorado soon can limit fees charged by third-party delivery companies to restaurants, following passage of a bill Wednesday that drew far more opposition than arose when Denver became the first city in the state to pass such a restriction in October. House Bill 1005 gives authority to local governments to limit the companies’ […]
Colorado lawmakers pass bill to let counties cap food delivery fees
DENVER — A bill that allows local governments to place caps on food delivery services like DoorDash and GrubHub passed in a special session of the Colorado state legislature. The bill comes as restaurants in areas across the state have had to close down their indoor dining as case numbers from the novel coronavirus continue […]