I have seen Doordash statements where commission + fees added up to 60% of the price. I asked the person who mostly worked with restaurant owners why they do it. He said:
1. A lot of restaurants are passion businesses and they don't realize how much money they are losing.
2. Morale in the kitchen is important, orders coming in keeps morale up.
From myself I would also add that they get a FOMO, cause it's hard to sit and watch others get business, however unprofitable. The most stable and profitable businesses in towns where we operated only worked with us, cause we offered cooperative ownership and small commission. It made no financial sense for them to work with anybody else.
To be really honest, neither of these reasons add up. Are you really suggesting that restaurants are losing large chunks of dollars yearly in every order to keep their staff and themselves "passionate"?
Doordashes filings as a public company have stated that the average revenue share with restaurants is 18% and maximum is 30%
That number includes chains. Those restaurants (McD's for example) get preferential treatment - they are on the front-page and they pay no or little commission. That would skew the average. And maximum probably does not include all the potential add-on fees.
I don't buy it for a second that restaurants don't know they are losing money. Just sounds like some made up bullshit because you have an axe to grind with Doordash.
You just claimed that hundreds of thousands of business owners don't know how to run their businesses, but that you know better. In general the idea that there is a one sided transaction being freely entered into is almost always a conspiracy theory riven by dislike of one side in the transaction.
1. A lot of restaurants are passion businesses and they don't realize how much money they are losing.
2. Morale in the kitchen is important, orders coming in keeps morale up.
From myself I would also add that they get a FOMO, cause it's hard to sit and watch others get business, however unprofitable. The most stable and profitable businesses in towns where we operated only worked with us, cause we offered cooperative ownership and small commission. It made no financial sense for them to work with anybody else.