You Shouldn’t Use Delivery Apps – Here’s Why
As a customer you might assume that since restaurants often partner with apps like Postmates, Grubhub and Uber Eats that restaurants are benefiting from them. This couldn’t be further from the truth. In a pre-pandemic world these delivery apps were considered a “necessary evil” for restaurants who did a fair amount of takeout, but didn’t have the infrastructure to support their own delivery. They take a huge chunk of each order and in the post pandemic world it’s not sustainable. As a culture and a community where takeout might be the main or ONLY source of income, you must start ordering direct. Over the last year we’ve learned that often times customers don’t know they are ordering through a 3rd party platform. When you want to order from your favorite place, do you know how to order direct? Do you check to see when you click on a link where it redirects you to before placing your order?
We have broken down 5 things you might not know about 3rd party apps and why you should avoid them AT ALL COSTS. Your favorite restaurants are living in a new normal and that new normal can not rely on delivery apps.
THEY TAKE 30%
When we talk to our customers this fact is the one they are most shocked by. Postmates, Grubhub and Uber Eats take apx. 30% of EVERY SINGLE ORDER. When you add that up on a weekly, monthly or yearly basis that could be 30,000-100,000 a year just in fees per app!
During this crisis some of these delivery corporations have marketed themselves as saviors to the restaurant industry. But, when you read the fine print on their so called ‘supper for support’ promos you see they are giving customers 10% off then charging the restaurants commission on the full order before the discount. It’s unethical tactics like this that you as a customer should understand so that you can make informed decisions.
THEY CHARGE HIGH SERVICE AND DELIVERY FEES
Not only does the restaurant get charged a percentage, so do you. Customers pay a delivery fee and a service fee. Delivery fees depend on the distance and range somewhere between $3.99 -$9.99. Service fees depend on the order amount and are somewhere around 15%. Often times restaurants have to raise prices on these platforms in an effort cover costs. So, you could be paying almost DOUBLE than what you would if you just ordered direct. Do you want to pay $40 for a $20 order? NO, who would knowingly do that?
THEY SPEND MONEY ON ADS OUTRANK US AND TAKE ORDERS
Corporations like Grubhub have endless amounts of money to spend on advertising. So if you try searching for “tacotarian online ordering” in an effort to find our direct website ordering, you’ll likely be served an ad that shows TACOTARIAN online ordering with a link to Grubhub. Most people quickly click and overlook the fact that it’s not our website, which is what Grubhub is banking on. Lucky for us a very smart loyal customer told us about this happening to us. Not lucky for us, there’s nothing we can do about it.
THEY CHARGE FOR PHONE AND ONLINE ORDERS PLACED VIA YELP
Do you use yelp as a yellow pages for local business? If so, STOP. Yelp works with Grubhub to reroute phone and pickup/delivery ordering away from restaurants. Most customers and restaurants don’t even know it’s happening. Regardless, restaurants are getting charged for each call to their restaurant placed on yelp even if it doesn’t result in the customer placing an order. That probably doesn’t sound like a company you want to work with right?
STAFF DOES NOT GET ANY TIPS
When you order from a delivery or 3rd party app the staff who made your order doesn’t get any of the tips even though you may have left a hefty tip at checkout. Now more than ever restaurant workers are the most effected by the pandemic and have been laid off for weeks or months. That’s not to say that drivers don’t need or deserve tips but the platforms don’t allow someone to tip the driver and the restaurant workers.
So, you’re probably wondering WHY restaurants use these apps if it’s not worth it? Well, we’re a restaurant and we want people to order our food! When there’s a demand we want to fill it with every option available. However, this pandemic has made us, along with thousands of other restaurants, realize how much we are losing by relying on these large corporations for delivery/takeout. And we can’t idly sit by and accept it any longer. We would rather give you discounts and offers by supporting us directly than give 30% to a company who doesn’t care if we succeed or fail. We will continue to slowly phase out these apps. But YOU as a customer have to take action. We’ve done our part by offering simple, accessible pickup and delivery options direct from our FB messenger and our website. SO USE THEM. Please order direct from us and from every other restaurant you love. Support local and give your money directly to local businesses.
