By the end of the year, restaurants are on track to lose $240 billion, but researches state that it also gives a chance to some businesses.
While empty restaurants across the country try to deal with temporary difficulties, hope for a bright future and wait for the reopening during the coronavirus pandemic, Grubhub, an online food ordering company, set a sales record of $363 million (12% more than the last year) from January to March. Because of the high fees charged by online ordering platforms like Gubhub, restaurants worry about making 15-30% fewer profits from online ordering. Sometimes ordering from online ordering platforms can be even unprofitable for restaurants, but they have no choice but accept these services to retain sales and keep loyal customers. Moreover, some restaurants have accidentally discovered that Grubhub was secretly buying new domains with existing restaurant names and is building shadow websites. New York City restaurant owner Shivane M. owns the mom-and-pop shop and offers phone orders and delivery to survive the pandemic. Besides this, she signed up in Grubhub several years ago. The service, Grubhub offered, was promising, though commission fees are too high. But recently she discovered that restaurant sales have dropped significantly. She found out that Grubhub has registered the domain name that matches her restaurant’s name. Grubhub has become a critical source for restaurants and the only survival in these tough times.
San Francisco and Seattle have recently demanded a reduction of fees, but Grubhub refused to reduce fees in the markets during the COVID-19 outbreak. When the governments declared a state of emergency over COVID-19, New York City lawmakers encouraged ordering services to reduce the delivery fee by 10% and remove advertising or processing fees. On Monday, Grubhub, Postmates, DoorDash, and Uber Eats were sued because of charging the high fees that need to be passed on to clients during the pandemic.
New York City Council member Justin Brannan reacted to BuzzFeed News: “I can’t believe that we have to legislate over a company whose gross food sales are in the billions in order for them to give local restaurants a break of a few hundred dollars per month!”
Grubhub states that in April, the number of daily average orders has increased by 20% compared to a year ago. The company is sure that the new COVID-19 is a net tailwind for our growth. Though Uber and Grubhub were refusing to decrease the order fees and the numbers of online orders and delivery continue to rise, Uber is negotiating to buy Grubhub and create the biggest online delivery company.
Justin Brannan is sure that it’s the time for Grubhub and other companies to reduce fees and support the local restaurants to survive this pandemic. However, Grubhub executives are sure that fee caps are ineffective and could have a negative effect on their company.
How restaurants can survive during a pandemic?
Restaurants realize that they should find effective and affordable ways to survive. Restaurateurs are assured there are two key factors that can help them survive the pandemic: VOIP for taking phone orders and uptime guaranteed internet for not missing orders and requests.
The backup internet is a safety net that provides an uninterrupted internet connection in case the primary connection fails. A backup internet connection allows taking online orders faster and achieving success in fast service and delivery.
Tough times have come and you should do your utmost for your restaurant to survive. Vivant company offers SmartCONNECT, cutting edge solution for a 100% connectivity uptime. Losing the internet can lead to order loss so SmartCONNECT will keep your connection up even when there are internet downtimes and don’t miss a single customer.
Restaurants also should not underestimate a strong communication solution like VoIP as it allows restaurateurs to get operational efficiency, offer perfect service quality, and cost-saving benefits. Restaurant owners and chefs can make use of a VoIP phone system to improve their customer experience and survive this pandemic easily.
Vivant offers a reliable communication VoIP system, that allows restaurateurs to achieve operational efficiency, improve the quality of service, and gain cost-saving benefits.
Vivant is here for you in these tough times! Choose the best Backup Internet service and phone service provider and you will survive the COVID-19.