On June 27th, The New York City Council hosted an oversight hearing to understand the impact of food delivery apps on the restaurant industry. The central question for discussion was: Do delivery apps make financial sense for restaurants?
Lately, many New York restaurateurs have complained about the high fees from food delivery services and how they’re being squeezed. Third party platforms have countered, extolling the brand recognition and marketing the eateries receive by being listed on their services.
Representatives from GrubHub and Uber Eats spoke at the hearing as well as restaurateurs and industry groups that represent small businesses and restaurants. Operators got to air some of their concerns and grievances regarding pricing. The owner of one eatery suggested that small places band together to negotiate better fees like some of the bigger chains. While the reps from digital delivery services didn’t make any promises, they said they were open to further listening.
Some restaurants have larger issues with delivery apps. In mid May, a class-action lawsuit was filed against GrubHub by a restaurant operator who claimed the delivery service charged restaurants for calls made through the app, even when they didn’t result in orders. Also, GrubHub has been accused of purchasing restaurant domains, in order to direct them to GrubHub’s website. Although the New York Council oversight hearing wasn’t directly related to these issues, it was certainly on the minds of the participants.
While this meeting didn’t result in any changes, it set a precedent. In the future, other city councils and restaurant associations will mostly likely have hearings of their own and over time regulations are sure to be put in place.
Sintel Systems is a global leader in omni channel solutions for the food industry. Our Direct-to-POS ordering platform was specifically designed for restaurants. This system allows eateries to have a custom, secure website and mobile app to support customer ability for placing orders on the go. All transactions from devices are seamlessly sent to the kitchen display system (KDS) so that kitchen staff is always in the loop.
Sintel Systems has a deep commitment to providing the restaurant industry with user friendly, effective POS solutions that promote order accuracy and customer engagement. Learn more about True Omni Channel POS here.