Third-party delivery vs self delivery, increasing labor prices means higher menu prices plus more.
5 Reasons Restaurant Should Self-Deliver
Grubhub, DoorDash, Uber Eats we all know them and use them but should restaurants be using these third-party vendors or opt for their own delivery? Restaurants report delivery as 40% of their total sales, while some of the third-party vendors take up to 30% of each order. This adds up quickly so it might be in the best interest of the restaurant to reconsider if they want to continue to use these platforms.
High Labor Prices Means Higher Menu Prices
Since August 2015, restaurant menu prices are up 11%. Labor costs as a percentage have continued to rise due to competition for labor and higher minimum wages in others. This leave restaurant operators with their hands tied because they need to keep prices higher to maintain profitability, but will this keep customers away or limit how much they dine out?
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