<story><title>Portland approves 10% cap on fees that food delivery apps can charge restaurants</title><url>https://www.oregonlive.com/portland/2020/07/portland-approves-10-cap-on-fees-that-food-delivery-apps-can-charge-restaurants.html</url></story><parent_chain><item><author>labster</author><text>Because tipping restaurant staff is what normal people do when they go out to restaurants in the U.S.  Those same people still prepare and package the food, even when someone else delivers it.</text></item><item><author>manigandham</author><text>Why would you tip the restaurant staff?</text></item><item><author>SheinhardtWigCo</author><text>There&amp;#x27;s also the 15-20% tip, of which the restaurant staff aren&amp;#x27;t getting a cent.</text></item><item><author>boring_twenties</author><text>Doordash seems to have higher menu prices than the restaurants&amp;#x27; own websites, so unless I&amp;#x27;m missing something, it seems the restaurant has the ability to choose to recoup those fees from the customer if they want to.&lt;p&gt;What gets me is that Doordash is triple dipping here. There&amp;#x27;s the fee to the restaurant, which may or may not translate to higher menu item prices. There&amp;#x27;s the fixed $2-5 delivery fee which is pretty obvious. And then there&amp;#x27;s the percentage-based fee in addition to that, 10 or 11% I believe, that&amp;#x27;s kind of hidden along with the taxes.&lt;p&gt;I mean come on. Sometimes I am willing to pay a rather high price to have my food delivered. I&amp;#x27;m not willing to have to fire up Wolfram Alpha just to determine exactly how much higher, though.</text></item><item><author>carlmr</author><text>How about you have to charge the fee to the customer. The issue isn&amp;#x27;t taking 25%. It&amp;#x27;s taking 25% from the restaurant, which means they don&amp;#x27;t have a profit margin left.&lt;p&gt;If for example the pizza is $10 at the restaurant, make that $12.50 with delivery and $10 without. That way the consumer can decide themselves if they want to pay the added amount for delivery, or if they&amp;#x27;d rather walk&amp;#x2F;drive. Right now they charge you $10 and give the restaurant only $7.50 meaning they can&amp;#x27;t make a profit on that pizza.</text></item><item><author>maltelandwehr</author><text>Next week there will be complaints that food delivery services are no longer catering to certain areas. Instead of accepting that it is just not profitable for them, journalists will label it as backslash or an act of punishment. Same thing happened in others states&amp;#x2F;cities that implemented similar rules.&lt;p&gt;The winners are people living in central areas of the city with lots of restaurants. The losers are the poorer outskirts.&lt;p&gt;I fully support the idea behind this rule. But this implementation has been proven to not work.</text></item></parent_chain><comment><author>manigandham</author><text>People tip the waiters &lt;i&gt;when dining in&lt;/i&gt;. Depends on the location if those waiters share with the rest of the staff.&lt;p&gt;Picking up food usually has no tips. Delivery involves tipping the driver, which delivery apps already support and they don&amp;#x27;t take any fees from it.</text></comment>
<story><title>Portland approves 10% cap on fees that food delivery apps can charge restaurants</title><url>https://www.oregonlive.com/portland/2020/07/portland-approves-10-cap-on-fees-that-food-delivery-apps-can-charge-restaurants.html</url></story><parent_chain><item><author>labster</author><text>Because tipping restaurant staff is what normal people do when they go out to restaurants in the U.S.  Those same people still prepare and package the food, even when someone else delivers it.</text></item><item><author>manigandham</author><text>Why would you tip the restaurant staff?</text></item><item><author>SheinhardtWigCo</author><text>There&amp;#x27;s also the 15-20% tip, of which the restaurant staff aren&amp;#x27;t getting a cent.</text></item><item><author>boring_twenties</author><text>Doordash seems to have higher menu prices than the restaurants&amp;#x27; own websites, so unless I&amp;#x27;m missing something, it seems the restaurant has the ability to choose to recoup those fees from the customer if they want to.&lt;p&gt;What gets me is that Doordash is triple dipping here. There&amp;#x27;s the fee to the restaurant, which may or may not translate to higher menu item prices. There&amp;#x27;s the fixed $2-5 delivery fee which is pretty obvious. And then there&amp;#x27;s the percentage-based fee in addition to that, 10 or 11% I believe, that&amp;#x27;s kind of hidden along with the taxes.&lt;p&gt;I mean come on. Sometimes I am willing to pay a rather high price to have my food delivered. I&amp;#x27;m not willing to have to fire up Wolfram Alpha just to determine exactly how much higher, though.</text></item><item><author>carlmr</author><text>How about you have to charge the fee to the customer. The issue isn&amp;#x27;t taking 25%. It&amp;#x27;s taking 25% from the restaurant, which means they don&amp;#x27;t have a profit margin left.&lt;p&gt;If for example the pizza is $10 at the restaurant, make that $12.50 with delivery and $10 without. That way the consumer can decide themselves if they want to pay the added amount for delivery, or if they&amp;#x27;d rather walk&amp;#x2F;drive. Right now they charge you $10 and give the restaurant only $7.50 meaning they can&amp;#x27;t make a profit on that pizza.</text></item><item><author>maltelandwehr</author><text>Next week there will be complaints that food delivery services are no longer catering to certain areas. Instead of accepting that it is just not profitable for them, journalists will label it as backslash or an act of punishment. Same thing happened in others states&amp;#x2F;cities that implemented similar rules.&lt;p&gt;The winners are people living in central areas of the city with lots of restaurants. The losers are the poorer outskirts.&lt;p&gt;I fully support the idea behind this rule. But this implementation has been proven to not work.</text></item></parent_chain><comment><author>kccqzy</author><text>When you go to a restaurant, you sit down, occupy valuable table space, and have staff service you by bringing the food to you, filling your drinks, and providing you with napkins and cutlery. That&amp;#x27;s why you tip.</text></comment>