A recent NYC Hospitality Alliance survey shows the NYC Restaurants and Bars that are fuming at Grubhub. Take a look at the full survey results.
Restaurants and bars in the nation’s hospitality capital are fed up with GrubHub, according to the results of a survey released today by the NYC Hospitality Alliance. The survey respondents – owners of 300 restaurants and bars – sounded the alarm about GrubHub’s unreasonable fees that force operators to raise menu prices or take a hit on business.
“Restaurants and bars are having a hard enough time as it is making it in New York City, and this survey confirms what we’ve been hearing for a long time: that GrubHub is preying on New York City restaurants and bar with ridiculous fees and imaginative scams,” said Andrew Rigie, executive director of the NYC Hospitality Alliance.
The survey found that:
- 90.3% of respondents said GrubHub/Seamless’ fees are unreasonable.
- 78.2% of respondents reported GrubHub/Seamless increased fees on their restaurant at least once.
- A majority of respondents have either raised menu prices or are being forced to consider raising prices on consumers to offset GrubHub/Seamless fees.
- More than 90% of respondents have had a negative experience with GrubHub/Seamless.
- One fifth of respondents said their GrubHub/Seamless orders resulted in a net loss.
- A majority of respondents said that customers who used to order direct from their restaurants now order via GrubHub/Seamless, forcing the restaurant to pay a fee.
The NYC Hospitality Alliance conducted the survey in an effort to better understand the industry’s experience with GrubHub after news broke that the company was charging their restaurant clients fake fees for phone call orders that customers did not place. Further reporting uncovered that the delivery company was engaged in other questionable business practices that come at the expense of restaurants, which resulted in U.S. Senator Charles E. Schumer calling on Grubhub/Seamless to fix their exploitative business model. Since then, The New York City Council has also held an oversight hearing into the restaurant delivery industry.
Much of the testimony at the hearing, and the conversations about Grubhub/Seamless have focused on bogus fees, market dominance, increased fees, customer data policies, and technological strategies that drive restaurants’ direct orders through Grubhub/Seamless’ own channels to increase the fees they collect from restaurants.
More recently, news broke that the company was listing restaurants on their website without receiving consent, which has caused problems for the businesses and consumers. It’s also been reported that the City Council, and other regulatory bodies, are now considering regulatory measures to reign in the giant delivery company.