Some NYC Restaurants Tire of Forking Over Delivery-App Fees

In recent years, New York City restaurants have complained about the fees that third-party ordering and delivery platforms, such as Grubhub and DoorDash , charge them. Those concerns have only escalated during the pandemic, when dining spots have become more dependent on meals to go for their financial survival.

Now, restaurants are increasingly finding a way around the issue by avoiding the platforms and assuming ownership of the process themselves. And they say the benefits go beyond the potential savings on third-party fees.

“It’s having a direct line of communication with our customers,” said Jon Sherman, chief executive officer of Sticky’s Finger Joint, a chicken-centric chain with several locations in the city.

Indeed, a burgeoning industry has emerged of technology-focused companies that assist restaurants with creating, managing and marketing their own online ordering platforms and connecting them with delivery people. A few of the firms are based in the city, including Lunchbox, which says it has seen 700% growth in its business over the past year, and Traiilo, a company that focuses on Latinx-owned restaurants and other food and drink-related retailers.

Another major New York firm in the mix is BentoBox, which is perhaps best known for helping restaurants develop their websites, but can also assist with ordering platforms.

Source: WSJ – US News

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