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Thread: Alberta restaurant group wants fee cap for delivery services

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    Default Alberta restaurant group wants fee cap for delivery services

    Link to story here.

    Yeah, I understand it's a double edge sword. Restaurants want to use delivery services and the two heavy hitters meantime in the story, Door Dash and Skip the Dishes, give them that service albeit at a cost. At the same time, many restaurants get a sort of web presence they might never achieve otherwise through these two delivery services.

    One thing that is interesting is the one restaurant owner, Modern Steak, complaining he's sepent $72,000 on fees since March - I have to wonder if he could've hired his own delivery drivers for that amount. Dominos still has it's own delivery drivers - so are they doing it wrong or are they doing it right?

    Btw, my wife and I have never used one of these delivery services - we'll order take out and pick it up. Our kids, though, all use both these services.
    Last edited by speedog; 05-20-2020 at 07:02 AM.

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    I think a lot of customers scroll through Door Dash or Skip to figure out what to get for dinner. Conversely, we spoiled ourselves and ordered Zipang last night. You could call or text your order, pickup or use their delivery driver or use DoorDash if you wanted. Hell they even were ok to accept e transfer! Huge sashimi pieces last night, damn I love that place.

    Anyways without the web presence on these delivery sites, I truly feel like they'd be much slower. Gotta pay to play right now.

    Modern Steak has a good following built on Instagram, posts a lot of funny shit. Their burgers were good but not amazing to me but onion rings were legit. A&W still has best onion rings!
    Last edited by msommers; 05-20-2020 at 08:25 AM.
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    Its kind of the same as the Amazon effect. So many people use these services that if you aren't on them then you aren't getting the sales. As a result your own site + delivery option will get a fraction of the traffic as being on Skip. So Skip can charge a premium because they bring in sales as well.

    Amazon basically does this as well, so much of ecommerce now happens on Amazon that merchants have to decide between either giving Amazon a huge cut or missing out on traffic. Last time I looked it cost nearly 27% cut to have our products fufilled by Amazon.
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    I have no issues with these delivery services making a bit of money. If restaurants don’t like it they are free to invest in their own web presence / app and delivery service. I bet you 99 times out of a hundred it’s cheaper to use DoorDash or Skip, which is why they don’t do it.

    The restaurants are just being sour that their antiquated model is being disrupted.
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    Door dash is a fucking joke, they put up any menu from any restaurant they can find online and just offer the service without contract or consent.

    We were sitting at my friends' one night ordering some desserts and his GF was scrolling though the different apps to find something and she came across HIS restaurant on DD. We're thinking WTF assuming someone in the BOH was running a scam or something so we ordered, the menu was wrong and the prices were wrong (outdated) but they actually phoned us and said "this item isn't on the menu today, can we offer this instead". Bottom line we got an order, paid LESS than current menu price and when he called to find out WTF was going on later it turns out DD had just phoned in a pickup order and then called us back to correct the menu discrepancies. They charged us their website prices for the available menu items though. Then DD goes to the the restaurant saying they have "demand for your services" and try to get you to sign up.

    Skip the Dishes just sucks for service in general here, I won't use them anymore. Tons of delay issues, drivers stealing food, etc. Although now most restaurants heavily staple up their bags to avoid the "sampling" by the scumbag driver.
    Originally posted by SJW
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    Doordash subsidizes those orders heavily, and is losing money massively. Suspect all those services lose money, but because they are"tech companies " nobody cares.
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    Quote Originally Posted by JRSC00LUDE View Post
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    Door dash is a fucking joke, they put up any menu from any restaurant they can find online and just offer the service without contract or consent.

    We were sitting at my friends' one night ordering some desserts and his GF was scrolling though the different apps to find something and she came across HIS restaurant on DD. We're thinking WTF assuming someone in the BOH was running a scam or something so we ordered, the menu was wrong and the prices were wrong (outdated) but they actually phoned us and said "this item isn't on the menu today, can we offer this instead". Bottom line we got an order, paid LESS than current menu price and when he called to find out WTF was going on later it turns out DD had just phoned in a pickup order and then called us back to correct the menu discrepancies. They charged us their website prices for the available menu items though. Then DD goes to the the restaurant saying they have "demand for your services" and try to get you to sign up.

    Skip the Dishes just sucks for service in general here, I won't use them anymore. Tons of delay issues, drivers stealing food, etc. Although now most restaurants heavily staple up their bags to avoid the "sampling" by the scumbag driver.
    I fail to see how that scenario is bad for the restaurant.
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    Quote Originally Posted by JRSC00LUDE View Post
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    Then DD goes to the the restaurant saying they have "demand for your services" and try to get you to sign up.
    Just read this article in the morning BBC News

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    When I saw this on the news yesterday, my question was: did Modern not understand the rate they were being charged or something? They act like it is a surprise to them or as if they increased commissions. I know everyone is hurting and some more than others but no one was pointing a gun to their head to use them. I may be missing a few details but regardless, I know many restaurant owners aren't going to be using the excuse that they were "surprised" by the fees.

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    Quote Originally Posted by Disoblige View Post
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    When I saw this on the news yesterday, my question was: did Modern not understand the rate they were being charged or something? They act like it is a surprise to them or as if they increased commissions. I know everyone is hurting and some more than others but no one was pointing a gun to their head to use them. I may be missing a few details but regardless, I know many restaurant owners aren't going to be using the excuse that they were "surprised" by the fees.
    Agree it's not a good look for the restaurant owner. Makes them look pretty inept.
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    I personally don't see any issues with those companies charging 30% service fee. I would imagine for a restaurant to setup a delivery system (hire and manage delivery staff and e-commerce setup, along with all the overheads like insurance, payroll, etc..) it would probably cost close to, if not over, the 30% fee. I think best of all it's a pay as you go system. If you don't get any deliveries that day, you don't pay any commission. You are not stuck with paying a delivery staff and all the associated overhead cost and paper work and headache.

    Plus it looks like the good restaurants are able to stay busy right now without relying on Door Dash or Skip. Look at how often places like Shiki Menya, BVF, or Bridget Bar sell out without putting themselves in those delivery apps. The realty is there is probably no way for any restaurants to survive or make money on take out orders alone if they weren't setup to do so in the first place, as they are still dealing with the cost and overhead of running a full restaurant that's designed to serve hundreds, if not thousands of dine in guests per week.

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    One thing to keep in mind is most restaurants already run pretty lean margins and then use societies tipping culture expectation to bring in additional revenue to pay their staff. The cooks still get a tipout each night. When you order on skip or doordash they don't receive any tips, anything you tip goes to skip / the delivery driver and not the restaurant.
    Nolan

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    Quote Originally Posted by killramos View Post
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    I fail to see how that scenario is bad for the restaurant.
    Out of date menu items and invalid pricing between takeout and dine in can make for unhappy customers. They're misrepresenting the business and it's unethical to peddle the restaurants services for their (DD) own gain when the business explicitly does not want to have anything to do with DD (or Skip for that matter).

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    Quote Originally Posted by tha_bandit View Post
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    Just read this article in the morning BBC News
    Exactly hahaha
    Originally posted by SJW
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    lmao I found DoorDash to be useless. Skip has a great app.

    Back on the topic: No one is forcing them to use the app; they can utilize and develop their own services if they want to.

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    Steve at Modern is a good dude and super hardworking. This is an extremely touchy subject for him. Everyone can form their own opinions and I don’t always agree with him getting into it with others but I see both sides.

    I had a free trial run with Door Dash for a couple months. They will add any restaurant to their site. They charge the customer initially so the restaurant pays nothing. Customer orders online, door dash will call into the restaurant on behalf of the customer and it’ll be placed as a pickup order. The call Center is India as I’ve never had someone with fluent call into place the order. Door dash picks up the order and pays with a door dash MasterCard. The restaurant gets the full money up front, customer paid a 15% surcharge on their order and presumably door dash covers a portion of it too. It’s a no brainer to try their trial run.

    After the trial run it’s back to the 25-30% fee again. Being Asian, of course I stopped using Door Dash. I ain’t paying that 25% but I have simplified my operations to 2 FT and 3 PT and that’s how I’m gonna roll now. My bills are paid and I’m no longer a money centric person. Well I am but overall health is more important lol

    That’s what Modern is fighting to get capped from 25-30% to a flat 10-15%. Now tbh, simplest way to put it, in this pandemic, having the govt step into cap the fees is the last thing anyone is thinking about with businesses failing all over the place. These apps are the middleman. Someone’s gotta pay.

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    Delivery fees + tips do add up.
    Ive started to order direct from the restaurant and tip there to help them out.
    But its a supply and demand issue. People are willing to pay for the delivery.
    I find the restaurants are placed in a impossible position. The min wage does not help at all.

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    Quote Originally Posted by Disoblige View Post
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    When I saw this on the news yesterday, my question was: did Modern not understand the rate they were being charged or something? They act like it is a surprise to them or as if they increased commissions. I know everyone is hurting and some more than others but no one was pointing a gun to their head to use them. I may be missing a few details but regardless, I know many restaurant owners aren't going to be using the excuse that they were "surprised" by the fees.
    Quote Originally Posted by ExtraSlow View Post
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    Agree it's not a good look for the restaurant owner. Makes them look pretty inept.
    I was thinking the same thing. Saw the Modern Steak guy on the news this morning, and I can only hope he's smarter than he comes across. When he said he was surprised by the price, it made him sound like a real dummy. If he's actually that stupid, no idea how he runs a successful business.

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    I hate door dash. A week ago the driver couldn't find my house so he left the food "under street sign", never found it. On Saturday the Door Dash driver just decided to not show up and keep our food, Door Dash refused to refund me.Untitled.jpg

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    Quote Originally Posted by tha_bandit View Post
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    Just read this article in the morning BBC News
    DoorDash is backed by investment giant Softbank, which this week posted a record-breaking loss of nearly $13bn.

    Defending the loss, chief executive Masayoshi Son reportedly compared himself to Jesus.

    The billionaire is said to have stated during a call with investors that Jesus was "also misunderstood".
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    What a dumb idea.

    Price controls never work.

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