Is DoorDash Bad For Restaurants

Is DoorDash Bad For Restaurants

No one can deny the convenience brought to us by delivery apps like DoorDash, Uber Eats, and Grubhub. With this level of accessibility, it’s easy to think everyone involved is winning.

However, these delivery services and apps may be worse for restaurants than they appear.

Is DoorDash Ruining Restaurants?

DoorDash and other delivery services give restaurants another means of income but at a hefty cost. DoorDash takes a cut from the restaurant’s profit, which hurts their bottom line. On top of that, some restaurants can’t keep up with the orders or afford the profit cut.

How Much Does DoorDash Take From Restaurants?

DoorDash can take as much as 15% to 20% per order from partnered restaurants. For big corporations like Mcdonald’s and Burger King, this may not be that impactful. But, for mom and pop shops or local establishments, this can be a significant cut.

For example, a restaurant may only receive $36 for a $45 order delivered with DoorDash. Losing $9 per delivery is a considerable amount and isn’t taking lightly.

Is It Better to Order From the Restaurant Directly?

It may benefit the restaurant more to order directly from them when possible. Ordering for pickup ensures all the profits go directly to the restaurant and its team.

Many restaurants provide curbside delivery and pickup services. These services are something to look into if you want to support your local restaurants.

Also read: Can You Be a DoorDash Driver at 16?

Do My Tips Go to the Restaurant?

No, your tips will not go to the restaurant. Although your tips help out the driver, you will not be supporting the restaurant by throwing in a few extra dollars. This is why it may be better to order from the restaurant directly than from the app.

What Happens When a Driver Messes up an Order?

A lot of the responsibility and errors from the app fall back onto the restaurants themselves. Cold food, late deliveries, and wrong items all affect how the restaurant is seen from the customer’s eyes.

This negative perception can affect their business, even if the problem wasn’t exactly their fault. On top of that, receiving negative phone calls from customers is never enjoyable, especially when the issue falls on the driver.

What Other Issues do Restaurants Run Into?

Restaurants using DoorDash and other delivery apps run into a wide array of problems. Some restaurants have received orders when they aren’t using the service. Other local restaurants haven’t been able to update their online presence, causing confusion amongst customers.

Some restaurants have claimed their business is on the app without their approval. This causes random deliveries and other issues, all affecting their business.

On top of that, restaurants can’t update their menus on the app when they run out. For example, if a restaurant ran out of particular meat for the day, they wouldn’t be able to update the app. Lack of information causes confusion and poor deliveries, which affects the restaurant and not DoorDash.

How Do the Restaurants Feel?

Some restaurants love the added business supplied from DoorDash. One owner claimed having DoorDash capabilities is like being open eight days a week. However, mom-and-pop shops may have a love-hate relationship with the service.

Some owners with this love-hate relationship say they would rather have the services than be without. The added delivery fleet of DoorDash provides shops with more business than they would receive otherwise, making it a hard service to deny.

How are Restaurants Fighting This?

Restaurants across the nation are looking for alternatives to third-party services. Some restaurants give out perks and benefits to customers who order directly. Owners are saying these efforts are beneficial but can only do so much.

Other restaurants provide curbside delivery and pickup options to help prevent the loss from DoorDash fees. Many restaurants are seeing success with these options, but they state it’s still not enough to lower the costs.

Which Delivery App Is the Best for Local Restaurants?

Each delivery app is going to take a cut out of the restaurant’s profits. However, some apps are better than others.

It seems the best app for restaurants is Uber Eats. Uber Eats offers a 15% to 30% fee for restaurants. This fee is similar to DoorDash’s program. However, DoorDash provides a 30 day free trial for restaurants.

The worst app for restaurants seems to be Grubhub. Grubhub charges multiple fees that vary per order and type. However, they provide restaurants with a tablet to manage the app and its capabilities.

Do Restaurants Dislike DoorDash?

Restaurants have a love-hate relationship with DoorDash and other delivery services. These services take a cut from the restaurant’s profit, which hurts their bottom line. On top of that, some restaurants can’t keep up with the orders or afford the profit cut.

 

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