Warning Restaurant Owners: Third-Party Delivery Services Are Taking Over

Who needs tables, chairs and a waiter when you can order food off your phone in just the tap of a finger? Thanks to the rise of delivery-app use, restaurants are ditching the idea of opening up a brick-and-mortar restaurant, according to Business Insider.

Due to the high commission fees that third-party delivery services charge, restaurants believe that “reducing headcount could save [the] business money.” In other words, there might be an increase in virtual restaurants.

“We saw a direct correlation between the delivery services and the reduction of our home income,” a restaurant owner who closed two location due to the delivery service takeover said to the New York Times. “It was like death by a thousand cuts.”

Today, the majority of food delivery still happens directly through the restaurant, but due to apps such as UberEats and Postmates, they’re making restaurants take a run for their money... literally. 

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