Short Version:

We are calling on Ubereats/DoorDash/MenuLog/Deliveroo to support Aussie food businesses by temporarily reducing your commission rates to 15% for an 8 week period.

The good karma you’ll get from small business owners, staff, customers and the Australian public will be uber worth it (pun)!

Pass on the #goodfaithrates

Sincerely,

Aussie Hospitality

Longer Version:

We are a plant-based burger joint, and like every other hospitality business, we expect very rough months ahead during the COVID-19 Crisis.

As social distancing becomes the calling cry to #flattenthecurve and avoid overwhelming our hospitals, food delivery is becoming incredibly important for restaurants to stay in business and Aussies to (stay sane in doors &) enjoy eating.

Currently commission rates are between 30%-40% (As in if you buy a burger for $12, the restaurant gets as little as $7.2). With average restaurant profit margins between 3-5% in general, this fast becomes unsustainable in this climate.

There are mortgages, livelihoods and jobs on the line.  

The recent COVID-19 crisis means delivery is crucial to reducing viral spread, and this isn’t the time to be taking advantage while small businesses are forced to move to delivery only models.

We’re calling on the food delivery services to be good corporate citizens in this time and reduce their rates to 15% temporarily whilst social isolation measures are in place. It will keep restaurants in business (and delivery providers’ commission rates coming), staff employed, riders employed, customers eating and reduce the spread of Corona Virus (COVID 19).

Sincerely, 

Soul Burger (on behalf of every other food premise)

Quick math for a regular restaurant below: 

$20 Meal
$6.4 Staff/Labour
$2-3 Rent
$6 Cost of Food
$2 Utilities/Gas
$1 Loans/Repairs/Maintenace
$0.6 Subscriptions/Services (Bookkeeping/Accounting/Software)

Profit: $1-3 per meal (5-10% profit)

Quick math for a regular restaurant selling the same meal with delivery below: 

$23 Meal (higher price for delivery)
$8.05 (Delivery commission fee)
$6.4 Staff/Labour
$2-3 Rent
$6 Cost of Food
$2 Utilities/Gas
$1 Loans/Repairs/Maintenace
$0.6 Subscriptions/Services (Bookkeeping/Accounting/Software)

Loss: $4.05 per meal (17% loss)

Quick math for a regular restaurant selling the same meal with #goodfaithrates delivery below: 

$23 Meal (higher price for delivery)
$3.45 (Delivery commission fee)
$6.4 Staff/Labour
$2-3 Rent
$6 Cost of Food
$2 Utilities/Gas
$1 Loans/Repairs/Maintenace
$0.6 Subscriptions/Services (Bookkeeping/Accounting/Software)

Profit: $0.5 (2% profit - success!)