A Canadian Restaurant Revealed Why It's Better For Them If You Don't Use Uber Eats
With local health restrictions limiting how eateries can keep doing business, this has been a year of takeout and delivery. One Canadian restaurant is revealing the cost of doing business with delivery services like Uber Eats.
Feast Cafe Bistro pointed out in an Instagram post, ordering through third parties, like Skip the Dishes and DoorDash, costs the restaurant money.
"We drew up a chart to explain how helpful it is to order directly from your favourite local restaurants as opposed to third party apps and delivery services," the caption reads.
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The chart breaks down the pre-COVID cost of what goes into an example menu item, priced at $1.
It shows that without using a third-party delivery app, the restaurant is able to make a five-percent profit on its item after deducting the price of labour, goods, and other expenses.
However, if the venue currently wants to offer delivery through something like Uber Eats, it has to pay a service charge, which when applied to the same example item, results in a loss.
That's even with the inclusion of lowered labour costs due to staff shortages caused by the pandemic.
Ontario Premier Doug Ford previously slammed delivery apps for charging restaurants high service fees to struggling restaurants.