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In today’s world Uber eats, Grubhub, etc take 30% of the gross on an order. No way it’s more profitable than having people in house buying alcohol.

by enjo 7y ago

karatestomp 7y ago
The one time I bought on Grubhub I had trouble getting the price to something reasonable even with the coupon I had (only reason I was trying it) because all the menu prices were way higher than at the actual restaurants. Even with (IIRC) the delivery fee waived and a significant % off (I wanna say 20 or 30?) it was about the same as going in. Does Grubhub do the menu-price adjusting part, or do the restaurants? Unlike your average delivery joint the numbers kept getting worse the more you added, too—no "two large two-topping pizzas and breadsticks at 70% menu price" deals or anything like that.
- manigandham 7y ago
  All of the delivery apps have much higher prices than what you can get at the place yourself. I suggest take-out or drive-thru if you're able.
  - karatestomp 7y ago
    The pricing was a big turn-off for me. The way it added more to the delivery cost per-item rather than being some kind of flat delivery fee, which didn't make much sense, and how it seemed like they were trying to hide the cost of delivery.
- frgotmylogin 7y ago
  I noticed the same thing a while back with DoorDash when trying to order some Cracker Barrel breakfast. It was something like a 30-40% hike across the board. I emailed DoorDash to ask what was going on with the prices and got a super misleading response along the lines of "our partner restaurants set their own prices" [1]- basically deflecting the blame back at the restaurant. So I emailed Cracker Barrel, and they are not (or were not at the time) partnered with any delivery service. [1] actual text from email: "As stated in our Terms and Conditions, the prices for menu items on DoorDash may differ from the prices on the restaurant's own menu. For example, our restaurant partners are responsible for setting the price of their menu items on DoorDash, and some restaurant partners choose to set different prices than they offer for in-store diners."
  - karatestomp 7y ago
    Actually, it may have been DoorDash I used, now that you mention it. Seemed like a really gross way to price delivery, giving fake, higher prices on every single menu item. And then still a delivery fee on top of that! I seriously had to shop around several of their restaurants and several menu combos to find one where I wasn't still paying above-menu even with the fairly "generous" coupon.
    - chillwaves 7y ago
      They charge a flat delivery fee, tip and an 11% "service fee". Not surprised they also have deceptive pricing. I used the app once because I had a free delivery (that's the 1.99 waived), ending up costing a lot more than just picking it up myself.
  - inferiorhuman 7y ago
    I noticed the same thing a while back with DoorDash when trying to order some Cracker Barrel breakfast. It was something like a 30-40% hike across the board. If DoorDash or Uber Eats charges 30% (which is fucking insane if they do), where do you think that comes from? Restaurants aren't making 30% profit. Compounding the problem GrubHub, and presumably other "gig economy" delivery services, preemptively adds non-partner restaurants against their will: https://www.sfgate.com/food/article/Grubhub-Michelin-star-SF-restaurants-delivery-15006168.php https://www.sfgate.com/food/article/Grubhub-Michelin-star-SF...
- joshvm 7y ago
  This is US-specific. Some companies like Just Eat (UK, Canada, Mexico and others) specifically say that the price has to be the same. To avoid the situation where you use their service as a convenient menu/opening time check, and then call the restaurant directly. Restaurants lose margin on those orders with the expectation that it's made up by more people ordering. https://www.just-eat.co.uk/pricepromise https://www.just-eat.co.uk/pricepromise
losteric 7y ago
Previous poster said take out, not delivery. Some restaurants bump up take-out item price or add a surcharge, factor in no need for waiting/cleaning staff and the profit is substantial. Protip: call in your orders, those take-out apps often take a cut that's just added to the restaurant's list price (last night I saw a $12 half-duck = $16 phone-in takeout or $25 Caviar take-out)
_jal 7y ago
I know the owner of a restaurant who stopped delivery after the apps took over. It literally wasn't worth it, and his drivers all switched over. He tried to find other folks to deliver, but, well, delivery folks aren't exactly known for being long-term employees and most of them deliver for the apps. I still don't understand what a multinational adds to local pizza delivery. Prices went up, pizza doesn't taste any better or get here faster, and my local restaurant makes less. Do not want.
- pc86 7y ago
  Your local restaurant might make less (I'm not sure I buy that), but the delivery driver likely makes more per hour. If it was a net loss for everyone except GrubHub or Uber, it wouldn't exist.
  - _jal 7y ago
    > Your local restaurant might make less (I'm not sure I buy that), but the delivery driver likely makes more per hour. I don't know what Uber pays their drivers, but I happen to know the place in question pays a good wage, comparably. I seriously doubt it driving Uber beats it. >If it was a net loss for everyone except GrubHub or Uber, it wouldn't exist. And yet, here we are. Econ 101 only takes you so far; why do you choose to ignore the other pressures? Once the econ brain worms take hold, people stop thinking.
    - pc86 7y ago
      You say "and yet, here we are" as if you've proven something, when you have no evidence to back up your statement and rely on passive aggressive pseudo-insults to imply that I don't know what I'm talking about.
      - inferiorhuman 7y ago
        I don't know what I'm talking about. And where's your evidence that restaurants are profiting off of Uber Eats / GrubHub / Door Dash / whatever? Restaurants are suing to be removed from these services. Presumably it's not profitable for the restaurant. Let's not forget that in most states these "gig" jobs hire people as contractors who are then ineligible for unemployment and social security and are not guaranteed a minimum wage. Restaurants typically hire folks as employees.

In today’s world Uber eats, Grubhub, etc take 30% of the gross on an order. No way it’s more profitable than having people in house buying alcohol.

by enjo 7y ago

In today’s world Uber eats, Grubhub, etc take 30% of the gross on an order. No way it’s more profitable than having people in house buying alcohol.

karatestomp 7y ago

The one time I bought on Grubhub I had trouble getting the price to something reasonable even with the coupon I had (only reason I was trying it) because all the menu prices were way higher than at the actual restaurants. Even with (IIRC) the delivery fee waived and a significant % off (I wanna say 20 or 30?) it was about the same as going in. Does Grubhub do the menu-price adjusting part, or do the restaurants? Unlike your average delivery joint the numbers kept getting worse the more you added, too—no "two large two-topping pizzas and breadsticks at 70% menu price" deals or anything like that.

manigandham 7y ago
All of the delivery apps have much higher prices than what you can get at the place yourself. I suggest take-out or drive-thru if you're able.
- karatestomp 7y ago
  The pricing was a big turn-off for me. The way it added more to the delivery cost per-item rather than being some kind of flat delivery fee, which didn't make much sense, and how it seemed like they were trying to hide the cost of delivery.
frgotmylogin 7y ago
I noticed the same thing a while back with DoorDash when trying to order some Cracker Barrel breakfast. It was something like a 30-40% hike across the board. I emailed DoorDash to ask what was going on with the prices and got a super misleading response along the lines of "our partner restaurants set their own prices" [1]- basically deflecting the blame back at the restaurant. So I emailed Cracker Barrel, and they are not (or were not at the time) partnered with any delivery service. [1] actual text from email: "As stated in our Terms and Conditions, the prices for menu items on DoorDash may differ from the prices on the restaurant's own menu. For example, our restaurant partners are responsible for setting the price of their menu items on DoorDash, and some restaurant partners choose to set different prices than they offer for in-store diners."
- karatestomp 7y ago
  Actually, it may have been DoorDash I used, now that you mention it. Seemed like a really gross way to price delivery, giving fake, higher prices on every single menu item. And then still a delivery fee on top of that! I seriously had to shop around several of their restaurants and several menu combos to find one where I wasn't still paying above-menu even with the fairly "generous" coupon.
  - chillwaves 7y ago
    They charge a flat delivery fee, tip and an 11% "service fee". Not surprised they also have deceptive pricing. I used the app once because I had a free delivery (that's the 1.99 waived), ending up costing a lot more than just picking it up myself.
- inferiorhuman 7y ago
  I noticed the same thing a while back with DoorDash when trying to order some Cracker Barrel breakfast. It was something like a 30-40% hike across the board. If DoorDash or Uber Eats charges 30% (which is fucking insane if they do), where do you think that comes from? Restaurants aren't making 30% profit. Compounding the problem GrubHub, and presumably other "gig economy" delivery services, preemptively adds non-partner restaurants against their will: https://www.sfgate.com/food/article/Grubhub-Michelin-star-SF-restaurants-delivery-15006168.php https://www.sfgate.com/food/article/Grubhub-Michelin-star-SF...
joshvm 7y ago
This is US-specific. Some companies like Just Eat (UK, Canada, Mexico and others) specifically say that the price has to be the same. To avoid the situation where you use their service as a convenient menu/opening time check, and then call the restaurant directly. Restaurants lose margin on those orders with the expectation that it's made up by more people ordering. https://www.just-eat.co.uk/pricepromise https://www.just-eat.co.uk/pricepromise

losteric 7y ago

Previous poster said take out, not delivery. Some restaurants bump up take-out item price or add a surcharge, factor in no need for waiting/cleaning staff and the profit is substantial. Protip: call in your orders, those take-out apps often take a cut that's just added to the restaurant's list price (last night I saw a $12 half-duck = $16 phone-in takeout or $25 Caviar take-out)

_jal 7y ago

I know the owner of a restaurant who stopped delivery after the apps took over. It literally wasn't worth it, and his drivers all switched over. He tried to find other folks to deliver, but, well, delivery folks aren't exactly known for being long-term employees and most of them deliver for the apps. I still don't understand what a multinational adds to local pizza delivery. Prices went up, pizza doesn't taste any better or get here faster, and my local restaurant makes less. Do not want.

pc86 7y ago
Your local restaurant might make less (I'm not sure I buy that), but the delivery driver likely makes more per hour. If it was a net loss for everyone except GrubHub or Uber, it wouldn't exist.
- _jal 7y ago
  > Your local restaurant might make less (I'm not sure I buy that), but the delivery driver likely makes more per hour. I don't know what Uber pays their drivers, but I happen to know the place in question pays a good wage, comparably. I seriously doubt it driving Uber beats it. >If it was a net loss for everyone except GrubHub or Uber, it wouldn't exist. And yet, here we are. Econ 101 only takes you so far; why do you choose to ignore the other pressures? Once the econ brain worms take hold, people stop thinking.
  - pc86 7y ago
    You say "and yet, here we are" as if you've proven something, when you have no evidence to back up your statement and rely on passive aggressive pseudo-insults to imply that I don't know what I'm talking about.
    - inferiorhuman 7y ago
      I don't know what I'm talking about. And where's your evidence that restaurants are profiting off of Uber Eats / GrubHub / Door Dash / whatever? Restaurants are suing to be removed from these services. Presumably it's not profitable for the restaurant. Let's not forget that in most states these "gig" jobs hire people as contractors who are then ineligible for unemployment and social security and are not guaranteed a minimum wage. Restaurants typically hire folks as employees.