Statement Regarding 3rd Party Platform Prices
Hello Valued Customers,
I am writing this post today in an effort to be transparent with you all regarding changes to our 3rd party platform pricing. After much deliberation, we have decided to increase our prices across all of these platforms which include UberEats, GrubHub, DoorDash and Postmates.
Not many users know that these services charge the restaurant between 25% - 30% per delivery order and 15% - 20% per pick-up orders. They also charge a credit card processing fee which is greater than the standard 2.9% for any credit card transaction. A $30 pickup order will result in a restaurant payout of $22.80 due to fees and commissions of approximately $7.20. An order placed directly through the restaurant's website will only have the 2.9% credit card fee.
Their business model revolves around them being a marketplace for customers that offers many different restaurants choices. They view themselves as advertisers of restaurants which provide said restaurants with 'new' customers.
During our first few years in business we maintained our prices on these platforms at the same level as our in-store prices for the benefit of all of our current and future patrons. Many other restaurants, including our competitors, increased their prices to account for this commission these services charge.
Initially these sales accounted for approximately 20-25% of our total sales and we were accepting of the losses. Unfortunately in today's post-COVID world, these platforms now account for around 50% of our already diminished sales and we are no longer able to proceed as we did before. For this reason we are increasing our prices across the board in an effort to recover some of these losses. Our competitors have already done so and it is time that we follow that path as well and press forward.
I would like to clarify that NONE of these price increases will be applied to our website orders, phone orders or in-person orders.
I know many of customers that utilize these platforms will be upset by these changes but unfortunately these must be implemented for our survival. I hope that you will all be able to understand things from our point of view and I sincerely thank you for being such loyal Barbonzians (I might use this in the future).
All the best,