Are Food Delivery Apps Helping or Hurting Local Restaurants?

CHATTANOOGA, Tenn. (WDEF) – In a pandemic year, thousands of restaurants across the country have been struggling to get by.

Many have been relying on food delivery services such as Uber Eats and Door Dash.

But some restaurant owners have started to question whether these delivery services have been doing more to hurt their businesses rather than help them.

Jake Raulston, owner of Naked River Brewing in Chattanooga, says that going with local delivery services such as Dinner Delivered, might be a better option for local restaurants looking to save.

“You know, every time that we have a problem or an order comes in and you’re talking to a real person versus some of these other competitors that are literally just a software that’s connecting you to customers and then they kind of price jack or have some specific you know legal wording on how you can do your pricing and whatnot that they really just hurt businesses the more and more you look into how they’re setup.”

Many local restaurants have been relying on delivery services as a source of revenue in a year that has been defined by lockdowns and stay at home orders.

But restaurants such as The Local say that big chain delivery services might be doing more harm than good.

“It does hurt small businesses because they do take like a portion of that, and it’s a pretty large portion. Most of the time it’s like 25 to 30 percent that they keep. It is on the business to make the decision on if they want to charge the customer that percentage extra or if they kind of want it taken out of their sales. We choose to take it out ourselves, we don’t want to charge our customers that extra percent.”

Coppock said that going with local delivery services instead would likely result in a better deal for other local restaurants.

Categories: Chattanooga, Featured, Hamilton County, Local News

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