[Nats121]

I got 21 years night delivery. I just stopped doing. After 6 plus years away. I can only speak for mom and pop food places.
Their rake thur G.H. is 30 % it will bankrupt the small business.
But if the small business is 30 years plus old like ours. 90% slice and g.h. with very small carry out DD. AND EATS.
People use g.h direct to our store I deliver..
So your post is very good.
But an example only.
$10 pizza they get $3 we go bankrupt.
But if you are big like we are. G.H GIVES us those $100 orders so $70 we can swallow. New places cannot.
Our app only store did not last 1 year. As drivers were late and surges caused customers to order somewhere else.
I avg..40 deliverys in 6 hours money was decent. Up to $300 a night. Very high pressure..as many as 10 orders per hour in a small area.
I did it so many years . I grew tired of it. I did as good with my private wheelchair customers at my own pace.
But you post here is a very good intelligent one.
I just got the non app experience..
I will say think a great mom and pop store drivers can earn $1300 a week plus 5 days @Only $4 hr .50 cents delivery as covid tips are super sick..some 3 block $40 orders got $10 tips plus the other 4 in your car 70% are paid for..just some info for food guys. These #s are for busy city places in small delivery zones..

UberEats charges much lower fees from restaurants that have their own drivers. I'm guessing Doordash and Grubhub do the same thing.

In addition, unlike their "take it or leave it" approach to the drivers, in some cases Uber is willing to negotiate service fees with restaurants.

 

[Ms. Mercenary]

Well that just hurt my feelings. I’m gonna go sulk now.

 

[bobby747]

Well for about 30 years our place and many about 4 big time local best joints charge $1 delivery...no one can match that. And if we forgot you xtra milkshake. Or soda. Like g.h and all app drivers not reading the orders..bad drivers. We bring it back. G.H and apps give you credit. Many customers dont want credit they want thier meals.
I did this 20 years at night. Buying selling homes and rehabbing on my own. Reason no pizza hut shirts. And the pay was killer. At 59. I came back like 9 months. Just got tired of it. Many professionals who have familys try to grab 1 to 2 nights a week. Everyone thought I was nuts giving in up a few weeks ago. I dont need the running around so bad. I dont miss it. Now I dont miss the big cash ..I used to years ago. Its SOS to me

 

[Ms. Mercenary]

@Ms. Mercenary
Which he is clearly not doing spending 20+ minutes on the phone with support. Right?
So spend 20 minutes with support and get a fraction, or 20 minutes to drop off and get the full amount. Hmmm.
He will not get a fraction. He will get full payment for loads not picked up.
And how does he know that load will never get picked up in the first 20 minutes?

But lets face it - those offers are not getting delivered for a very specific reason. So someone needs to address that specific reason.
Its not his job to address that issue. The restaurant has a contract with the delivery services.
HE/SHE makes the food, the services pick up and deliver.

My point was that everyone needs to change with the times. Not signing up with generators in this market is acostly mistake. And no system is perfect.

I’ve never been a “it’s not my job” kinda person - it’s one of my severe disabilities, really. I’m very goal-oriented. My mind snaps to the end result, frequently at my expense. It has always been a struggle for me.

 

[jaxbeachrides]

If you're selling a $12 cost "quality" prime steak for $20 you're a complete idiot.

Take a look at the price of a "quality" prime steak at a nice restaurant or steakhouse, the price is no where near $20.

If you are selling a steak for $20 than you are selling a "lower quality" piece of meat and paying a lot less for it.

You can get steaks $20 or less at some chains IHOP, Chili's, Applebees, etc.etc. but they are not even close to selling "prime" cuts of meat. For FS a quality Burger with higher grade beef (such as Angus) is hard to find for less than $16 let alone a quality steak!

Completely normal for competitive businesses. Restaurants earn about 10% as their net income.

Let's say you get the 2 for $20 at applebees or chili's, they give you 2 5 oz strips and a couple sides. They probably make a couple dollars off this.

But why? In house sales add huge margins on drink sales.

It's well known that restaurants subsidize the food to some extent, so they can mark up the drinks huge.

Starbucks can afford 30% commission because they're selling you a cup of water for $5.

The only food places that can really afford 30% are foods that are mostly fillers, flour based or cheap starches. Pizza, rice, Asian, Mexican. They can lose 30% and still make a profit on food alone.

This is why restaurants hate DD and uber because they give up their in house drink sales and pay too much commission, but the restaurant is making all the capital investment, doing all the work, and taking all the risk to lose money. There's no incentive.

 

[bobby747]

I can ad this. If you order ..poppers. ravs.. wings.. steak fries. Loaded fries . About 30 sides dishes . We knock you head off.

 

[Ms. Mercenary]

I’m curious: do vendors see if an order is a non- or low-tip?

 

[Seamus]

I’m curious: do vendors see if an order is a non- or low-tip?

On which app? I know on GH they can see the driver tip, I've had a restaurant owner show me my tip once.

On DD or UE I don't think so but don't know for sure.

Some places (mainly chains) have a deal with DD that they just request the delivery. On those specific orders where the customer calls or places an Online order direct with the restaurant I believe they would know because they get the order direct from the customer.

On those orders once you accept the offer you will see a message that says "this delivery was requested by the restaurant so we don't know the order content" in the "items" field. That's how you would know it's that type of order.

 

[25rides7daysaweek]

I hesitate to even post this as I know many will criticize me as a shill or worse! But I see a lot of misinformation when lambasting UE/DD/GH fees of up to 30%. People use words such as "greedy" etc.etc. and think they take all the profits from the restaurants. This is just a realistic perspective to keep in mind.

Keep in mind that is not as simple as it sounds. I'm NOT defending UE/DD/GH fees and I realize that small businesses especially, get their profit eaten into but in reality for medium to large businesses the deal might not be as bad as you think.

Many drivers tend to think of the fees as only representing "Delivery". In reality the fees make up:

• Credit Card payment processing. These fees paid by a restaurant without delivery are going to be approx 3.5% and there is usually a "swipe fee" on top of that of up to 30 cents per swipe.
• Marketing Think of the cost to a restaurant to advertise in print, radio, or TV. Many have pulled back on marketing expenses as UE/DD/GH are in effect marketing for them. Industry standard is 6% of sales for restaurants. Again, small mom and pops don't spend much on marketing so they get bit into the worse.
• Delivery Well this speaks for itself. Many restaurants don't offer delivery so this is a cost of doing business for top line growth. While mom and pops that offer delivery are paying drivers in tips and cash most must pay on on the books wage. In states like NY that means about $15/hr plus payroll taxes. Add that, WC, UI, etc. and your talking more like a real cost to the business of $17/hr and consider on average that person makes 3 deliveries per hour. More during peak but less during dead times.

Add it all together and it's not quite as bad as you think, except to small mom and pop businesses.

Also keep in mind the GROSS MARGIN on food is 200-300% although the NET MARGIN is 5-7%. UE/DD/GH are biting into the GROSS MARGIN which most restaurants will easily make adjustments for.

setting all things equal, Example:
Order for restaurant with own delivery person
+$20 food order
-$6.50 food cost
-$1.00 Credit card fee
-$1.20 marketing
-$5.70 delivery driver cost
-----------
$5.60

Order for restaurant with NO delivery offered
$5.60
+$5.70 add back delivery driver cost
--------
$11.30

Order for restaurant with using UE/DD/GH at 30% fee
+$20 food order
-$6.50 food cost
-$6.00 UE/DD/GH fee of 30%
---------
$7.50

So the real questions are:

• Is a 30% hit to the GROSS MARGIN of 200-300% worth it for top line revenue growth? (maybe)
• If restaurants add more GROSS MARGIN to cover fees who pays? (consumers)
• How can mom and pop small restaurants use UE/DD/GH? (only by raising prices)
• Will restaurants that DON"T participate lose business to participating competitors? Yes

It's become just another cost of doing business for many restaurants.

In the end it's the consumers who pay the price in higher prices!!!

Q Why do UE/DD/GH charge up to 30% fees?
A Because they can.

You sir are a certified shill or worse
A very informed one but one nonetheless
Say hello to Dara for us....

 

[Alltel77]

Restaurants aren't hurting at all from these apps, only the stupid ones. The service fee is usually 5%-8% when I order off UE , the delivery fee is almost always $0-.49. Nearly every restaurant has the online app menu marked up varying percentages and many use limited menus for on-line. Some restaurants also experiment with smaller portion sizes. I'm pretty sure the apps have different agreements with restaurants especially major chains like McDonald's etc. I just don't know who takes the hit for the promos I constantly receive for $20 off $30. I did order from a Peruvian restaurant recently with that promo and the restaurant had a bogo so I received two half chicken meals and two steak meals for $16 (including all fees) if I had gone to the restaurant and ordered it would have been nearly triple that amount. It was a ton of food actually stretched 6 meals and good. Even after tipping it was $26 which is still a good deal for 4-6 meals IMO.

 

[Gone_in_60_seconds]

I hesitate to even post this as I know many will criticize me as a shill or worse! But I see a lot of misinformation when lambasting UE/DD/GH fees of up to 30%. People use words such as "greedy" etc.etc. and think they take all the profits from the restaurants. This is just a realistic perspective to keep in mind.

Keep in mind that is not as simple as it sounds. I'm NOT defending UE/DD/GH fees and I realize that small businesses especially, get their profit eaten into but in reality for medium to large businesses the deal might not be as bad as you think.

Many drivers tend to think of the fees as only representing "Delivery". In reality the fees make up:

• Credit Card payment processing. These fees paid by a restaurant without delivery are going to be approx 3.5% and there is usually a "swipe fee" on top of that of up to 30 cents per swipe.
• Marketing Think of the cost to a restaurant to advertise in print, radio, or TV. Many have pulled back on marketing expenses as UE/DD/GH are in effect marketing for them. Industry standard is 6% of sales for restaurants. Again, small mom and pops don't spend much on marketing so they get bit into the worse.
• Delivery Well this speaks for itself. Many restaurants don't offer delivery so this is a cost of doing business for top line growth. While mom and pops that offer delivery are paying drivers in tips and cash most must pay on on the books wage. In states like NY that means about $15/hr plus payroll taxes. Add that, WC, UI, etc. and your talking more like a real cost to the business of $17/hr and consider on average that person makes 3 deliveries per hour. More during peak but less during dead times.

Add it all together and it's not quite as bad as you think, except to small mom and pop businesses.

Also keep in mind the GROSS MARGIN on food is 200-300% although the NET MARGIN is 5-7%. UE/DD/GH are biting into the GROSS MARGIN which most restaurants will easily make adjustments for.

setting all things equal, Example:
Order for restaurant with own delivery person
+$20 food order
-$6.50 food cost
-$1.00 Credit card fee
-$1.20 marketing
-$5.70 delivery driver cost
-----------
$5.60

Order for restaurant with NO delivery offered
$5.60
+$5.70 add back delivery driver cost
--------
$11.30

Order for restaurant with using UE/DD/GH at 30% fee
+$20 food order
-$6.50 food cost
-$6.00 UE/DD/GH fee of 30%
---------
$7.50

So the real questions are:

• Is a 30% hit to the GROSS MARGIN of 200-300% worth it for top line revenue growth? (maybe)
• If restaurants add more GROSS MARGIN to cover fees who pays? (consumers)
• How can mom and pop small restaurants use UE/DD/GH? (only by raising prices)
• Will restaurants that DON"T participate lose business to participating competitors? Yes

It's become just another cost of doing business for many restaurants.

In the end it's the consumers who pay the price in higher prices!!!

Q Why do UE/DD/GH charge up to 30% fees?
A Because they can.

You also didn't mention the delivery fees that Uber, DD and Grub Hub charges the customers. DD its a flat $4 - $5, Uber can vary, but averages about $8-$11 and not sure about Grub Hub.

So, Greed is very appropriate to describe these companies.

Of course for costs especially for DD, you also have to factor in the refunds that they must process for the cheap customers that don't tip and the order are not picked up by the driver. As well, there is also compensation for the restos when the order is not picked up? Not sure how much that costs. When you analyze, its extremely wasteful for DD to process the refunds and wasteful for the environment, as the food goes into the dumpster.

 

[sykeskimberlyd]

Well for about 30 years our place and many about 4 big time local best joints charge $1 delivery...no one can match that. And if we forgot you xtra milkshake. Or soda. Like g.h and all app drivers not reading the orders..bad drivers. We bring it back. G.H and apps give you credit. Many customers dont want credit they want thier meals. I did this 20 years at night. Buying selling homes and rehabbing on my own. Reason no pizza hut shirts. And the pay was killer. At 59. I came back like 9 months. Just got tired of it. Many professionals who have familys try to grab 1 to 2 nights a week. Everyone thought I was nuts giving in up a few weeks ago. I dont need the running around so bad. I dont miss it. Now I dont miss the big cash ..I used to years ago. Its SOS to me

“Like GH drivers not reading the orders?” Ummm the driver doesn’t prepare the order, the restaurant does, and it should be ready ahead of time, so the driver only grabs it and goes. Order accuracy is the responsibility of the restaurant, NOT the driver. In fact, the restaurant staff should be visually confirming every item with the driver….which would ensure nothing is missing, and no need to “forget” or “bring back” a milkshake or anything else.

 

[ANT 7]

Many restaurants in my market have HIGHER PRICES on the delivery apps than in room dining or pickup pricing, as well as, they often use SMALLER portion sizes (pizza excepted) for app orders to offset the fees being charged.

How do I know this ? I simply asked them outright when picking up food I had ordered.

 

[joebo1963]

On which app? I know on GH they can see the driver tip, I've had a restaurant owner show me my tip once.

On DD or UE I don't think so but don't know for sure.

Some places (mainly chains) have a deal with DD that they just request the delivery. On those specific orders where the customer calls or places an Online order direct with the restaurant I believe they would know because they get the order direct from the customer.

On those orders once you accept the offer you will see a message that says "this delivery was requested by the restaurant so we don't know the order content" in the "items" field. That's how you would know it's that type of order.

t

 

[joebo1963]

On which app? I know on GH they can see the driver tip, I've had a restaurant owner show me my tip once.

On DD or UE I don't think so but don't know for it

I took a photo of this owners copy of Receipt to make I didn’t get cheated.DD showed $15 but it paid the 6.99 plus 22.28.

 

[ANT 7]

They sure eat healthy !!!!!