Pizzeria Reveals Shocking Bill for 46 Orders

Jacquie Cadorette
May 01, 2020 - 5:00 am

The owner of Chicago Pizza Boss shared a troubling photo on social media that has consumers wondering where their money is really going when they order delivery from some of their favorite local businesses.

Third-party delivery companies like Grubhub are taking out extraordinary fees and commissions as outlined by a photo posted to Facebook by Giuseppe Badalamenti.

The photo illustrates almost $1,100 in revenue for the restaurant, but more than half of that went back into Grubhub. The restaurant itself made a mere $376.54 profit off of the sales.

Delivery aficionados will have noticed over the past several weeks that many of their favorite delivery service apps have given them prompts to support local businesses by ordering from local restaurants. What consumers may not know is that many of the profits gained from a third party don't actually go to the restaurant.

With restaurant closures in place save for take out and delivery options, many establishments are forced to rely on these third-party apps, despite gaining just a fraction of the total sale of the orders.

This leads experts to wonder if the apps are simply profiting from the restaurant industry's collapse, as outlined by The Guardian.

While the apps used to act as a marketing tool for local businesses with full dining rooms, now, the apps are the crutches of the industry, perhaps taking advantage of each establishment's struggle to maintain regular business.

Commission from third-party delivery service apps can range from 15% to as high as 35% of order totals.

Still, some apps have opted to try to alleviate the strain on restaurants with UberEats waiving activation fees for new restaurants and Grubhub deferring (but not waiving) commissions for some independent locations.

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