"Worse, his delivery partners typically took a cut of 20 percent or more. When Roland decided to do the logical thing—raise prices on orders placed through third-party services—two of the companies he was considering, Postmates and DoorDash, insisted that delivery prices match his in-house prices.
We are going to start the revolution against these huge companies, located thousands of miles away, who rob small businesses and customers of their hard earned dollars,” the note reads. "
It’s sort of a similar notion of the use of credit cards- convenience for the consumer and cost is put back onto the merchant. The merchant needs to decide whether or not a reduced sale outweighs the risk of no sale at all, which is a really variable thing in the restaurant industry.
I think the biggest problem is that too many people start businesses and jump into ideas that sound good in theory without doing the research behind it.
Does the advertisement from the delivery company and volume of sales generated from make up for the loss in revenue?
Is it cheaper to hire own delivery staff?
Some restaurants offer a reduced rate (ie 10% off ) to people who pick up orders or pay cash to combat their administration costs.
