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Third-party delivery apps like Skip the Dishes, DoorDash and Uber Eats have clearly shaken up the food service industry. But are they also shaking down restaurants?
According to many restaurateurs interviewed for this article, the 25 to 30 per cent commission paid to food delivery apps often exceeds their thin profit margins. And there are other issues, including food that arrives late, cold, or not at all. Complaints from customers about an incorrect order—sometimes a missing soft drink—can result in the restaurant being penalized for the entire cost of the meal.
Skip the Dishes (which recently shortened its name to Skip), DoorDash and Uber Eats were launched respectively in 2012, 2013 and 2014. Skip came out of western Canada, though it has since been purchased by a U.K. company; the others are American.
Five years ago, Mithun Mathew launched SpiceX, an Indian food takeout restaurant on Malta Street in St. John’s, N.L. Last year, he purchased Blackmarsh Superette, a convenience store and takeout restaurant in St. John’s. He added Indian food to the menu, while maintaining the Canadian food already on offer, creating fusions of both. It’s probably the only authentic Indian restaurant in the city that also serves up a popular Jiggs dinner.
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