Grubhub Waiving $100 Million in Commissions
If you're the owner of a small, independent, casual-dining restaurant, the looming possibility of diners quarantined in their homes due to COVID-19 is a frightening proposition. But on March 13, third-party delivery service Grubhub (NYSE: GRUB) provided a glimmer of hope. It announced that it's waiving up to $100 million in commission fees for independent restaurants around the country.
Image source: Grubhub.
Third-party delivery services provided a welcomed comparable-sales boost for many restaurant chains in 2019. However, delivery sales come at a cost. High estimates place delivery commissions at 30% of a meal's ticket price, which can be prohibitive for some restaurants. To counteract this, some large chains like El Pollo Loco created special delivery menu pricing to offset fees. Others have created delivery-only menus -- offering just its higher-ticket items.
Source Fool.com
