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  • JulesAZ

Support Restaurants With Direct Delivery

COVID-19 has propelled the food delivery industry few years into the future with millions of people ordering food online for the first time during lockdown, according to a February Business of Apps post. In 2015, U.S. food delivery revenue was at $8.7 million. In 2020, it was $26.5 billion, a 204 percent increase over the past five years. Business of Apps predicts a projected revenue of $28 billion this year and $30 billion in 2022. There’s also a potential for more revenue as more platform-to-consumer apps are introduced to more cities across the U.S. As far as the numbers go for U.S. food delivery users, there were 66 million in 2015 and 111 million in 2020. While the surge in demand may cool off once we return to normalcy, Business of Apps believes some workers may leave the restaurant industry at that point.

So the next time you want to get takeout, consider ordering it straight from the restaurant. While delivery apps like Uber Eats, Doordash, Grubhub and Postmates can be convenient, oftentimes they are charging restaurants big bucks for their services. A recent Los Angeles Time story features Caitlin and Daniel Cutler, a couple behind Ronan restaurant on Melrose Avenue. They have always budgeted for rent but did not anticipate the devastating effects of the coronavirus pandemic that included a major drop in sales and skyrocketing expenses associated with getting their food to takeout customers. The Cutlers also shared on Instagram that they spent $35,000 on delivery service fees in 2020. That includes an 18 percent fee per order to Caviar, 20 percent to Postmates, 18 percent to Doordash and 20 percent to Uber Eats, according to the LA Times. A January Eater article lays it out like this — apps limit a consumer’s contact with a restaurant. You tap a button when you’re craving lunch, and your order arrives. After receiving their food, many consumers simply don’t think about the care the restaurant took into making the food. The pandemic has encouraged contact-less situations like these and while they are good for our health, it’s certainly not how it used to be for restaurant owners.

When you order directly from your favorite eateries, they can avoid paying commissions to third-party services. Many restaurants are struggling just to keep their doors open, so getting hit with a commission fee or a flat fee is not very sustainable, says the LA Times. The percentage does vary by city and by app, and several places like Chicago, New York and San Francisco have implemented fee caps in the last year. It remains to be seen if this will be done in Phoenix, where the most popular app is DoorDash with 49 percent of meal delivery sales in January 2021, according to SecondMeasure. It’s not entirely all bad for restaurants though — many are thriving with assistance from these apps including ghost kitchens that rely entirely on them for delivery orders.

There are several restaurants in Arizona that provide their own delivery services, so we’ll spotlight some here. Place your orders directly with these eateries by calling or ordering on their websites if applicable.


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