A Case Against the Large Delivery Platforms

Why You Should Consider Ditching the Large Delivery Platforms

The three largest delivery platforms (GrubHub, UberEats, Doordash) dominate almost the entire market. Their popularity has soared over the past 5 years, but most consumers don’t know how these platforms really work.

If you’ve ever used one of the delivery platforms you’ll already be familiar with the fees associated with the consumer. They charge a delivery fee, ranging from $1.99 – $7.99. They also charge a service fee, ranging from 5% – 35% of the entire order.

What you don’t see are the fees associated with the restaurant. They charge the restaurant a fee from 20-35%, depending on the size of the restaurant and how popular it is. For example, when you purchase a $10 brisket sandwich from Saddleback, the restaurant only revieves $6.50 – $7.00. When you consider most restaurants operate with around a 30% margin on food, and rapidly rising food costs, this essentially wipes out the entire profit, and in some cases the restaurant will lose money with every delivery order.

We appreciate everyone doing their best to support local restaurants, but suggest, if possible, to order directly from the restaurant. This small change will have a large impact on all of your favorite restaurants.

See full video of Saddleback Co-Owner, Travis Stoliker, speak on this issue: https://www.facebook.com/Saddlebackbbq/videos/553485268645703/