02 Sep

Did you know that UberEats, MenuLog, and most other online delivery platforms charge restaurants 30-35% commission for every order?

Did you know that on top of this, they also charge the drivers a commission on the delivery fees (which are already very low)?

People have embraced these platforms with gusto, especially during COVID, but the truth is - restaurants simply cannot survive if they are forced to pay such high commissions.

The average profit margin of a restaurant is around 10-15% at best, so if you take a 35% commission then restaurants are actually LOSING MONEY for every order that they take!

Of course, you might argue that they don't have to pay floor staff or rent because these orders are not being served in-house, and this might be true under normal circumstances, but during the COVID lockdown then restaurants have had to continue paying a lot of their overheads despite not being able to accept customers.

Even during the good times, paying such a high commission is crushing for a small business who is doing its best to serve good quality food at a reasonable price. The only types of businesses who can afford to pay commissions like the ones charged by delivery platforms are businesses that themselves are exploiting their workers, OR businesses who rely on mass production and cheap ingredients to take a profit.

This is not your average local cafe or restaurant, though. Local businesses usually pride themselves on looking after their staff and on the quality of their ingredients, as well as on making as much of their food as possible in-house.

"Please spare a thought for the people who are losing money for your comfort factor and the delivery people are earning next to nothing for their work, while the people in their ivory towers are earning big time for doing nothing," says Marios co-founder, Mario Maccarone (of famous Brunswick St. café, Mario's)

If you enjoy dining out at your local cafés and restaurants, as most Australian's do, then please don't support these platforms and instead, order directly from the venue or though a platform like Loop that does not charge restaurants (or delivery drivers) commissions on orders!

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