Small eateries concerned over high fees charged by food delivery services

Restaurant owner say use of delivery apps has cut into his income

FOX 10's Linda Williams caught up with one diner owner, and broke down on just how much money is given to the delivery service in the form of fees.

PHOENIX - Since dining in has become less appetizing for so many due to the ongoing COVID-19 pandemic, restaurant owners like Joe Seriale, who owns Joe's Diner, have had to make a new game plan by switching to 3rd party delivery apps, Apps like Postmates, Doordash and Uber Eats.

"We tried it at one point. We tried Doordash," said Seriale.

Seriale's diner sells breakfast and lunch, and he says he quickly realized it didn’t make dollars, or sense, for him.

"They take too much of the profit," said Seriale. "I'm not sure the public realizes they charge 25%-35 % of the sale."

Seriale gave an example. The French Dip on his diner's lunch menu costs $14. He says that $3.5 will come to him.

"My food cost is probably $4, and they get $4," said Seriale. "I get about $3.5 of that $14 meal, and there's not enough for me to pay the employees, the rent, and the various utilities."

Other restaurant owners have complained about the 35% to 40% fees the delivery services charge restaurants. Seriale worries many won’t be able to survive, and says for now, he’s hoping that dine-in and takeout orders will keep his diner afloat.