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Need lunch at the office? Don’t have time to stop at the grocery store? Feeling too tired to cook? Food delivery apps make it easy to order from nearby restaurants. However, the cost can be higher than you think — especially for small local restaurants and their delivery drivers.
Tips from the Better Business Bureau can help you understand how delivery apps work and how you can support your favorite local restaurants when you deliver.
- Learn how food delivery apps are impacting restaurants. A third-party food delivery app might seem simple—you order, the restaurant makes it, the third-party app delivers it, and you pay for the extra service. But the process is not that simple. You don’t see the high commissions restaurants pay for using these services. Some delivery apps charge restaurants 20% to 30% or more. While local restaurants may increase revenue through these apps, their profit margins may decrease. This is not a sustainable business model for most mom-and-pop businesses. Additionally, some of the companies behind these services have been blamed for deceptive registration tactics and questionable marketing practices that further cut into restaurants’ profits.
- Think about delivery drivers. Delivery drivers also need to be treated fairly under this arrangement. These gig economy apps typically offer drivers a minimum payment per delivery. Plus, they get your tip, right? Maybe, but maybe not. In the early days, many delivery apps used tips to make up workers’ base wages — meaning it went into the company’s pocket rather than the driver’s pocket. Public outcry on social media led most companies to change their approach, but not all caved in. To make sure your drivers get their tips, research how your app handles tips or set aside some cash.
- Watch your budget. If you plan your expenses with a budget, you allocate specific amounts for food and eating out. Just keep in mind that using a delivery app can significantly cut into that budget. The New York Times reported that buying food through a food delivery app is 91% more expensive than going to a restaurant or picking it up.
- Find a better delivery method. Food delivery apps are one of the many ways to get food from your favorite restaurants delivered to your door. Many restaurants still employ delivery drivers. In this case, ordering direct from the restaurant will save you money and provide much-needed support to local businesses. You can also search for delivery apps with more sustainable systems. Some newer apps require you (and the restaurant) to pay a flat fee, enabling the restaurant to keep 100% of the profits from each order. Always check the BBB.org ratings before ordering from any new business.
- Support local restaurants where possible. Often, local restaurants feel pressured to use third-party delivery apps and raise prices to cover the extra. Supporting local restaurants by ordering and picking up directly from their website can make a huge difference for small businesses. It helps them keep their prices down, which saves you money in the long run.
Next time you’re ordering, keep in mind the true cost of using a third-party delivery app.if you don’t need Deliveries, visit restaurants in person to support local businesses.
to know more information
Read BBB Tips: Supporting Small Businesses for more ways to help local business owners. You can also find great advice on delivery apps in BBB Tips for Choosing a Food Delivery Service.
If possible, do business with a BBB-approved business. Read more about the BBB Accreditation Standard and the BBB Trust Standard. Learn how to become a BBB Certified Business.
