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Dear friend,
$376. That’s how much a Chicago-area food truck was left with after Grubhub deducted administrative and promotional fees from over $1000 worth of orders.1 And the food truck isn’t alone, restaurants across the country are reporting exorbitant commissions that eat away at their profits and barely cover the price of the food; much less payroll or operating expenses. It’s ridiculous--while small restaurants are trying to feed their communities and survive this devastating public health and economic crisis, they’re being slammed with Grubhub’s exploitative commissions and delivery fees. That’s why we’re demanding that Grubhub #DropTheFees and cap commissions at 10%. Small restaurants are the lifeblood of our communities, and during the coronavirus pandemic, Grubhub must reduce the barriers to their sustainability, not cause increased hardship.
The slim profits that restaurants are earning are even more shocking when you consider that Grubhub is making more money than ever, while the restaurant industry is nearing a collapse.2 While Grubhub reports record revenues with a 20% daily increase in orders, the restaurant industry has lost $25 billion and restaurant owners have had to lay off more than 3 million employees.3,4 Food delivery services wouldn’t exist without restaurants and Grubhub’s excessive fees not only harm their profitability but make them unsustainable. The challenge is compounded for Black-owned restaurants who are already at an economic disadvantage during the Coronavirus pandemic--especially considering that up to 90% of Black businesses are locked out of federal relief programs.
Prior to the pandemic, restaurant customers were already paying more for food because of the contracts amongst third party services like GrubHub, UberEats, Postmates and DoorDash. But now, as people around the country are mandated to stay-at-home, many restaurants are forced to rely on these services for delivery. And Grubhub is taking full advantage of that. Last month, Grubhub released a sentimental commercial claiming that “Restaurants are our family”, while simultaneously charging their “family” standard commissions of 30%.5 It’s time Grubhub drops the double talk and upholds the values it claims. Stand with our local restaurants and demand that GrubHub stop exploiting small businesses.
Until justice is real,
Jade, Rashad, Arisha, Brandi, Johnny, Evan, Amanda, Eesha, Samantha, Marcus, FolaSade, Jennette, Ciera and the rest of the Color Of Change team.
References :
- "Viral Facebook post shows just how little restaurants make from Grubhub orders," Eater.Com, 1 May 2020, https://act.colorofchange.org/go/245956?t=10&akid=42345%2E1942551%2ES_8fnJ
- "Grubhub collected record fees from restaurants struggling to stay alive during the pandemic", Buzzfeed News, 7 May 2020, https://act.colorofchange.org/go/245957?t=12&akid=42345%2E1942551%2ES_8fnJ
- “New research details early impact of coronavirus pandemic on restaurant industry,” Restaurant.Org, 25 March 2020, https://act.colorofchange.org/go/245958?t=14&akid=42345%2E1942551%2ES_8fnJ.
- "Grubhub collected record fees from restaurants struggling to stay alive during the pandemic", Buzzfeed News, 7 May 2020, https://act.colorofchange.org/go/245957?t=16&akid=42345%2E1942551%2ES_8fnJ
- "NYC restaurants, bars starved of customers by coronavirus slam Grubhub for exorbitant fees," NY Daily News, 09 April 2020, https://act.colorofchange.org/go/245960?t=18&akid=42345%2E1942551%2ES_8fnJ
Color Of Change is building a movement to elevate the voices of Black folks and our allies, and win real social and political change. Help keep our movement strong.
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