SASKATOON -- While delivery services may be convenient for customers, they are costly for restaurants.
“The third-party apps, they charge a large commission towards the restaurant,” said owner and operator of Hudsons, Greg Clark. “They charge anywhere from a 15 to 30 percent commission that they are charging on each order.”
For a business trying to survive the pandemic, those costs are becoming more noticeable. Due to COVID-19 restrictions around seating capacity for restaurants their delivery sales have spiked.
“When we’re highly reduced right now and a lot of our revenues are coming off takeout and delivery it impacts us a lot more to be losing off that bottom line,” said Clark.
Hudsons offers curbside pickup which is its preferred method for customers. They are doing twice as many deliveries as they were this time last year,
“Skip the Dishes, Door Dash, they are great in busy times. They do affect us a lot in these times,” said Clark.
Bill Barlas, who is set to open Filosophi Wise Cuisine in the coming weeks, said he is just starting a new restaurant and is not going to use any third-party delivery companies.
Barlas has worked in the restaurant and hospitality industry for three decades. His new business is looking to avoid any unnecessary costs.
“The margin, especially now, COVID times, is very, very small. Like a lot of business can hardly make it, never mind making any profit,” said Clark.
Filosophi Wise Cuisine will offer its own delivery service when it opens.
DoorDash spokesperson Cat McCormack said in an email the company offers multiple ways to support restaurants and pricing to suit each restaurant’s needs.
“The business agreements we have with each restaurant are based on those needs and the costs associated with providing these services, which are more vital than ever. Merchant fees help pay for a variety of business costs to support all three sides of our marketplace. These fees help provide the level of quality customers expect from a delivery provider, pay Dashers meaningful earnings and drive volume and sales that are so important to restaurants right now,” McCormack said.
