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Though they also get a 30% cut of the food price, so that considerably changes the economics.
by sveme 4y ago
Though they also get a 30% cut of the food price, so that considerably changes the economics.
- nobody9999 4y ago>Though they also get a 30% cut of the food price, so that considerably changes the economics. IIUC, 30% is the top end, with rates ranging from 10-30%. That said, many (most?) restaurants that aren't high-end (which won't be preparing orders for delivery anyway) have gross margins of at most 10-15%. The cut that DoorDash, GrubHub, etc. take has driven many lower cost restaurants (a number of which had provided their own delivery and been in business for decades) where I live (NYC) out of business over the past 10 years. The only choice for these folks is to raise prices enough to cover the extra costs, often killing their business (note that GrubHub requires restaurants to charge the same on their site as on their in-house menu, not sure about other services). The result is fewer independent low-mid priced restaurants. And that's a loss to any community.