Reduce Delivery Apps Fee for Restaurants during Coronavirus Crisis

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Summary:

  • the current situation is forcing all of us to stay home in order to preserve our safety as well as everybody else's
  • this translates in a total drop in restaurants walk-ins, causing major losses and risks to small business 
  • delivery, on the other hand, is growing everyday and it's the safest way to get food while also supporting small businesses
  • third party delivery platforms charge up to 30% of the ticket value for their services to restaurant. This is not sustainable, especially in this time of crisis
  • we're asking third party delivery platforms to cap their fees at 10%, allowing restauranteurs to use those additional funds to provide financial safety to their employees (more hours + paid sick days)

We are living in unprecedented and challenging times.


The current situation caused by the uncontrolled spread of the coronavirus is forcing all of us to be responsible and spend more time at home in order to avoid putting our health and the health of others at risk. 


Unfortunately, this change in consumer behavior has had an enormous economic impact on restaurants and small businesses. In the last few days, the number of people dining in at restaurants has dropped 75% and this number is only expected to decline further. 


As restaurant revenues drop, so will the income of their employees. Most restaurant workers are paid by the hour and their scheduled hours are directly proportional to expected sales volumes. 


On the other hand, people are adapting to this new situation and delivery orders have been surging. This is fantastic news for restaurants, except for the fact that each time an order is placed on Grubhub, Seamless, Caviar, UberEats, Postmates and other third party platforms, restaurants have to pay these companies a really high fee that usually is around 30% of the order value.


When delivery companies take 30% of each sale, it eats into the low margins already present in the restaurant industry. With such a decrease in profit margins, it becomes harder and harder to support employees, maintain their working hours, or provide paid sick leave. 

For this reason, I'm asking all of you to sign this petition and ask delivery companies to reduce their fee to 10% during this tough  time. With more income going straight to restaurants, restaurant owners will be able to better sustain their businesses and support their employees and families during this challenging time. 


Thanks for taking the time to read this and helping to support local businesses like ours.

Be safe,

Alessandro & Francesco (Avocaderia)


p.s. Don't get us wrong, at Avocaderia we also leverage a lot on delivery apps to increase revenues but things are changing and we need to adapt in order to do what's best for the community. Also, we're not the first ones asking for this:

- https://www.nytimes.com/2020/02/26/nyregion/grubhub-doordash-fees-nyc.html

- https://table.skift.com/2019/02/28/smaller-restaurants-grapple-with-the-burden-of-delivery-service-fees/

- https://www.wsj.com/articles/restaurants-are-arm-twisting-delivery-companies-to-lower-fees-11561282202