![]() The food delivery apps have different ways of devising fees, but they tend to be in the range of 20% to 40% of how much a restaurant makes in app-generated revenue. ![]() In a bid to help struggling restaurants, cities from Seattle to Washington, D.C., are passing caps restricting how much food apps can charge to deliver meals. He expects food delivery apps to represent a sizable portion of his sales when he can restart his business, but he is not yet sure whether he will be able to make the numbers work out. He temporarily shuttered all of his restaurants with hopes of reopening, when he can, on a pared-down menu emphasizing items that are the most affordable to make. With already thin profit margins further diluted by the app fees, Bathwal could not justify keeping his six locations open. "If it starts becoming 30%, 40%, 50% of your business, it is not incremental business - it is your business." There's no other way for people to get business because of the lockdown," Bathwal says. ![]() In the end, Bathwal said, that kati roll purchased on the delivery app would net his restaurant about $7.Īpp commissions were more manageable when it represented a smaller segment of overall revenue. If someone ordered two kati rolls for about $12, the apps took a hefty chunk of that sale: roughly a 17% commission on top of a fee for delivering the food to someone's door. Mark Lennihan | APįor an idea of why independent restaurants have long complained about food delivery apps, just ask Anil Bathwal, who owns The Kati Roll Company, a group of New York City restaurants serving Indian street food.īathwal relied on a handful of food apps to supplement his dining-in purchases, despite hefty commissions the apps tack on to every sale he used Grubhub-owned Seamless, Uber Eats, Postmates and other food-ferrying services. Listen On Wednesday, New York City became the latest city to pass a cap on how much food delivery apps like Grubhub can charge restaurants for deliveries.
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