[QSR] Why Restaurants Need to Diversify Away from Delivery Marketplaces

Delivery marketplaces, like Uber Eats and Grubhub, have made life so much easier for people during the pandemic, when dining out has not exactly been an option for communities under quarantine, and cooking has become tedious for many.

However, as necessary as restaurant delivery marketplaces have become for consumers, it is not always in a restaurant’s best interest to rely on them.

Pre-COVID-19, restaurants mainly saw incremental revenue from their food deliveries—it might have been just 10 percent of their business. Paying a delivery company 30 percent of the total basket was not a big deal in that scenario. Now, amid the pandemic situation and seemingly overnight, deliveries now make up upwards of 70 percent of a restaurant’s revenue—the 30 percent delivery fee suddenly becomes a burden, eating into much-needed profits, no pun intended.

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Adriana Kosiba