“When restaurants operate off of 6[%], 8% profit margins, when you’re paying 18% of your total revenue to the delivery companies, you’re just not viable,” Schall said.
Companies like Grubhub, Postmates, DoorDash and UberEATS charge substantial commission fees on deliveries.
“Restaurant owners have informed me that the delivery companies charge upwards of 25[%], 35% commission fees on deliveries,” said Councilor Ed Flynn.
“Restaurants are now paying a significantly larger portion of their revenues for commissions to the delivery companies, which is a huge burden, especially when their sales are already down.”
Councilor Matt O’Malley noted that the four main delivery vendors — Grubhub, Postmates, UberEATS and DoorDash — make up more than 90% of the industry.
