Hard to swallow: the 30% price hike that gets delivered with your meal
Restaurants say they have no choice but to pass on fees charged by the big food courier apps.
The pandemic was a boom time for food delivery as Britons relied on apps like Deliveroo to bring dishes to their door. But that convenience comes at a price, as consumers are often charged higher prices – in some cases almost a third more – on takeaway menus and service and delivery fees.
Using apps such as Deliveroo, Uber Eats, and Just Eat will often cost more than if you were ordering the same food in a restaurant or cafe because restaurateurs say they need to make up for the fees levied by the apps, which are frequently around 30% of the price of the order.
Deepak Shukla, who owns three cafes in south London, charges £3.90 for a cappuccino on Deliveroo and Uber Eats but £3.10 if a customer enters the door. A toasted sandwich is £6.50 on the apps and £4.90 in-store. That means lunch is 30% more to order from home.
“We inflate prices to support the fact that Deliveroo takes a commission,” he says. “Otherwise, you’d make a loss after paying staff and bagging and tagging.”
The use of delivery apps rose sharply during the lockdown as restaurants, pubs, and cafes were restricted from serving diners in person on their premises. In the first half of last year, Deliveroo doubled its customer orders compared with 2020. Just Eat saw similar rises across Europe.
Customers typically pay a delivery fee and a service fee, a percentage of the order, before discounts are applied.
The full article is “Hard to swallow: the 30% price hike that gets delivered with your meal.” by Shane Hickey.