Mark Bouris chats to local business owners about the hidden impact delivery companies have on small businesses.
Many don’t realise that delivery services and apps charge a restaurant roughly 30% of the listed price of a product to deliver food. For example, if you sell a Wrap for $10, the delivery company would take $3 as a fee for delivering your food. However, the delivery companies prevent you from increasing your price of the Wrap to “cover” the cost of the delivery service.
The real difficulty for local restaurants is their profit margin is often well below 30%.
We went and spoke to local business owners who have been turned off using delivery companies and have even implemented some counter strategies to bring back the social aspect of ordering food from a restaurant.
Over 3,000 people have already signed Ben Fordham’s petition for food delivery services to halve the commissions they charge restaurants and cafes during the coronavirus crisis.
Executive chairman of Yellow Brick Road Mark Bouris says it’s ridiculous for delivery services to gouge the businesses they rely on.
“It doesn’t make sense to me. What’s the point of putting all your resources, in other words, all the places that provide your product, into liquidation or into administration by gouging them.”
Mr Bouris encourages people not in isolation to pick up their orders directly from their local restaurants and cafes.
Uber Eats, Deliveroo and Menulog currently charge up to 35 per cent commission on every order.
Ben points out that during a time where more Australians are choosing to stay home instead of eating out, commissions on deliveries should be lowered.