Some restaurants owners are urging customers to skip the delivery apps

Some restaurant owners in Ontario say third-party food delivery apps have become one of their biggest costs, adding to the strain of already high food, labour and operating expenses.

Turning them off completely isn’t that simple but an increasing number of independent, smaller eateries are weighing whether it’s worth it.

“I feel they’re predatory on the businesses, and they’re predatory on the customer,” co-owner Dan Summerhayes said of the fees that continue to rise at his downtown London HOUSE Craft Burgers.

He points to commission fees that can run as high as 30 per cent per order, and cut deeply into profits. It has him rethinking whether to rely on delivery apps at all.

“Thirty per cent is a big chunk,” Summerhayes said, “and that’s before food costs, before everything.”

Customers also pay delivery and service fees, which can significantly increase the final price of a meal. While those charges don’t go to the restaurant, Summerhayes said customers often don’t realize where the extra costs are coming from.

“I don’t think I’ve mentioned it to one person who wasn’t shocked,” he said. “They had no idea, because that information is not readily out there.”

Now, some restaurant owners say they’re weighing whether the added exposure delivery apps provide is worth the cost, or whether opting out entirely makes more sense.

Saying no to the delivery apps

Renee Kaplansky, co-owner of Renee’s Sandwich Shop in London’s east-end, said no to third-party delivery apps when she opened last year.

It was a difficult decision, and she explains customers regularly ask why the restaurant isn’t available on the usual apps.

“They’re taking roughly 20 per cent, which means I have to mark up my sandwiches,” Kaplansky said of third-party platforms. “I don’t want anyone paying $25 or $26 for a sandwich.”

Avoiding delivery apps also allows her restaurant to maintain control over customer experience and food quality.

“Once it leaves my hands and goes to a driver, I don’t know how they’re representing the shop,” Kaplansky said. “Sometimes they’re making multiple stops, and a hot sandwich arrives cold. That reflects on us, but we don’t have control over that.”

She said customers can still order delivery directly through the restaurant, which contracts out to to a local service, without higher menu prices.

A profitable model

In a statement to CBC News, Uber said its platform is designed to help restaurants reach new customers and generate revenue without the cost of operating their own delivery systems.

“By handling delivery, technology, and customer discovery, we make it easier for restaurants to reach new customers and generate revenue without taking on the cost and complexity of running their own delivery operations,” the company said.

The company said tens of thousands of restaurants across Canada continue to partner with Uber Eats, and estimated the platform supported $1.61 billion in additional merchant revenue in 2024.

HOUSE Craft Burgers co-owner Kirsten Summerhayes acknowledges Uber can help bring in orders, she said the delivery-app model favours large chains with the staffing and financial resources to absorb the costs that come with that demand.

“It’s not sustainable,” she said.

More than a transaction

She said the conversation around delivery apps often misses what restaurants like hers are trying to offer.

“When you walk into a place, you feel the energy,” she said. “It’s more than just a meal — it’s an experience.”

Dan Summerhayes said delivery apps do serve an important purpose, particularly for customers who can’t easily visit in person.

“Not everybody has access to us right at the door,” he said, recalling a message he once received from a customer with a disability asking if delivery would ever be available.

Still, he said nothing replaces being there in person.

“There will never be a day when ordering on an app is better for a restaurant than someone coming in,” he said. “Every restaurant has such a better chance of surviving if you come in and get the food.”