Restaurants are fucked - unless they get a bailout

Customers still demand delivery but it’s now obvious that the existing delivery app business model is not sustainable for restaurant owners

No industry was spared from the effects of Covid-19, but restaurants were undoubtedly one of the hardest hit. The numbers prove the stark reality: food service industry sales fell by $240 billion in 2020 from a projected $899 billion, and more than 110,000 eating and drinking establishments closed last year nationwide (that doesn’t include what’s s... See more

What is it about the food delivery platform business? Restaurants are hurt. The primary labor is treated poorly. And the businesses themselves are terrible.

In 2023, 74 percent of all restaurant traffic came from “off premises” customers—that is, from takeout and delivery

These initiatives are certainly a feel-good way for customers to continue to support the hospitality industry – but it remains to be seen if they can provide enough of a boost for restaurant owners to continue partnering with them in the long term. External interventions on the hospitality industry don’t always go well, particularly where there’s a... See more