Skip third-party delivery services to better support restaurants, says industry rep

VANCOUVER (NEWS 1130) — Food delivery apps like Uber Eats, Skip the Dishes or foodora are getting a lot of usage during the COVID-19 pandemic, but an industry representative points out those third-party services take a significant bite out of local restaurants’ profit margins.

BC Restaurant and Food Services Association CEO Ian Tostenson says those middlemen can end up taking commissions in the range of 20 to 30 per cent of an order’s value.

“That’s a lot of costs for restaurants, so their margins which are already low are even lower,” Tostenson says.

He’s advising anyone who orders delivery to order from the restaurant directly.

“When you had it before, you had a blended cost. You had your in-store customers and guests. Now you’ve got nothing but outside guests. And that’s where the concern on the cost has come, and it’s just blatant,” he says.

Tostenson also says he wants to thank everyone who’s been trying to support their favourite restaurants during this crisis.