LOS ANGELES (CBSLA) – Many restaurants are depending on takeout and deliveries to survive during this pandemic.
But for some owners — giving up a good portion of their hard fought sales to third-party delivery apps like Grubhub, Uber Eats and DoorDash just isn’t worth it and they’re backing out.
The kitchen is still hot at All’Acqua in Atwater village as employees have been making the food deliveries during this pandemic.
Owner Claudio Blotta decided that using delivery apps like Grubhub or Postmates to get his Italian dishes out to his customers was not worth it financially.
“The apps are just too expensive for us at this time what going on to use them they charge 20 to 30% and it’s not feasible for the amount of business we are doing now!,” he said.
But Oscar Palomo, GM at Sharkeys Mexican grill in Burbank, says despite paying about 20 to 25% on every order -he needs those delivery apps – especially on Cinco de Mayo.
“We have to decided it is worth the cost,” Palomo said.
On GrubHub‘s website, for example, the fees for delivery, marketing and processing can add up to 30 percent on every order.
Emily and Steve Nalbantian run the Ugly Mug coffee shop in Burbank and even went as far as posting a message on their website letting customers know they don’t have any relationship with delivery apps.
Blotta says even after the pandemic is over, he won’t go back to using these apps.
Postmates said every one of their negotiated deals is different depending on what the restaurant owner needs.
Grubhub says restaurant owners join for free and only pay when they use a service which can help businesses grow.