Leadership TV

Are Third-Party Delivery Services Costing More for Restauranteurs?

As third-party delivery services are picking up pace in America, restaurant businesses are slowing down. As per this Wall Street Journal video, restaurants get a profit of 69% for in-store services. Because of third-party apps restaurant profit margin has dropped to 39%. Moreover, restauranteurs would pay 10% to 25% of their profits to these apps like Uber Eats and McDelivery. They also cannot monitor customer data. Restaurants that want to deliver on their own encounter other charges. To compete with the existing third-party deliveries, they are compelled to lower their delivery charges. Small businesses cannot afford it. Unfortunately, 85% of customers are not ready to pay more than $5 for restaurant deliveries.

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