Why your favorite restaurant may shut down

Every time you launch a food delivery app like uber, do you know it may potentially shut down the restaurant you are ordering from? Don’t panic – you are getting misled by the doomsday tone.

By shut down, we don’t exactly mean shut down. You will still be able to order food from the restaurant, just not visit it physically. That’s because we think your restaurant will shift inside your phone; more precisely, in a restaurant delivery app. Similarly, your favorite pizza parlor will be accessible through a pizza delivery app, and so on.

Food delivery services are giving many restaurants a run for their money. These food delivery apps provide people food right at their doorstep with minimum hassle and interaction. All you have to do is just open the app, search your favorite restaurant, and in no time the food will be on its way to you.

Yet, a food delivery service app cannot possibly compete with the physical dining experience a restaurant’s dine-in can provide. The ambiance of an outdoor location cannot be competed with; this is especially true for high-end restaurants that serve you food at exotic spots.

The competition between the two options is fierce. Both have their merits that cannot be ignored.

For instance, a liquor delivery app will bring you your favorite drink, but savoring that same drink at a fancy place has its own charm.

But delivery apps are not necessarily the bad guys. Many offer multiple delivery services. For example, you can order personal items and Italian at the same time with an on-demand delivery app.

Still, your favorite diner or pizzeria might not agree with this. Many food joints agree that as free food delivery apps increase orders, profitability decreases. This is because third-party apps usually charge a hefty commission off each order. This paired with the courier charges shrink the overall profit margin. Thus, most restaurants believe they either have decreased profits or break even.

Some resentful restaurateurs feel tied to this food delivery model. Ben Chateau, head chef at a Toronto based eatery says the only reason he doesn’t quit such apps is due to the massive customers they bring in.

However, not everyone feels this resentment. Some welcome this new option with open arms and have had great experiences. They love the constant influx of new customers and believe it is a better option for gaining visibility amongst the audience.

This positive attitude could be because of the delivery app platform they use. For example, some 24-hour food delivery services are more flexible and small business friendly. Many provide delivery driver jobs app benefit too, with their businesses successfully eliminating courier costs. Similarly, the commission model is also different – that is they do not take a percentage of the sales.

What are your views?

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