Despite viral Grubhub photo, third-party delivery apps help McHenry County restaurants ‘stay afloat’

John Sarantopoulos, owner of the Eggville Cafe in Cary, saw the viral screenshot. The photo showed a Grubhub financial statement from an unnamed restaurant. It indicated that after more than $1,000 in sales, the restaurant profited only $376.54 after Grubhub fees.

Sarantopoulos’ first thought? That restaurant made a bad deal.

“I don’t know what they negotiated or signed,” Sarantopoulos said.

Comments flooded social media last week, suggesting consumers stop using such third-party delivery services as Grubhub, DoorDash, Uber Eats, Postmates and others. A number of McHenry County area restaurant owners see that as the wrong approach.

At a time when restaurants are hurting, every sale matters. Most local restaurants don’t pay nearly as much in fees as the viral photo seemed to suggest. A statement from Grubhub indicated that fees depend on how the restaurant chooses to use the service.

“Restaurant owners select the services they want and only pay a commission to Grubhub when we help generate sales,” a Grubhub spokesperson said. “Grubhub is happy to work with restaurant partners to help them manage costs and grow their business.”

James Coli and his brother Brian own Georgio’s Chicago Pizzeria & Pub in Crystal Lake and South Barrington. In addition to their own delivery drivers, they use Grubhub, DoorDash, Uber Eats and a service called ezCater for catering. James Coli said third-party services are taking about 30% of every order, but it’s “a necessary evil.”

“We’d rather have people call in an order,” Coli said. “You’re between a rock and a hard place. If you’re not [using third-party delivery], you’re missing the boat.”

Coli said Georgio’s 15 or so delivery drivers are well-trained, and he believes they provide better service than third-party apps. For a pizza restaurant such as Georgio’s, with a loyal Crystal Lake following, Coli figures the clientele on a third-party app vs. those calling in are likely different anyway.

People scrolling through third-party apps on their phone might not typically order from Georgio’s if they hadn’t seen it pop up on their screen. Coli said Georgio’s hasn’t seen any decline in demand for call-in delivery orders since they joined third-party delivery apps a few years ago.

In Sarantopoulos’ eyes, the fees restaurants pay to those services go toward all the advertising and marketing that third-party delivery services do for restaurants.

“It’s a partnership,” Sarantopoulos said. “People have got to remember that, too. You’re also paying for the advertising they do. When someone is sitting at their house, once they see my restaurant on there, it’s like planting a seed.”

Sarantopoulos’ Eggville Cafe uses DoorDash. He estimates it probably accounts for 40% or 50% of business during the pandemic. Eggville Cafe also does its own deliveries, too, with more of an all-hands-on-deck approach – Sarantopoulos himself will even deliver orders.

Eggville Cafe has been with DoorDash for nearly two years. Sarantopoulos shopped around and did his research before settling on DoorDash.

“What I like about DoorDash now is they’ve cut their commissions [during the pandemic],” Sarantopoulos said.

Eggville Cafe’s fees this month are only 50% of what they normally are, Sarantopoulos said, and Saturdays are free delivery for customers.

Most third-party delivery services have made adjustments during the COVID-19 pandemic. Uber Eats waived delivery fees for independent restaurants and has raised $3 million for restaurants across the country. In March, Grubhub deferred commission fees for impacted independent restaurants. DoorDash has offered financial assistance options, including commission relief and marketing support.

Still, some major metropolitan governments like New York and Chicago are moving to cap third-party delivery fees in their cities.

Sallie LoBue and her family own 750 Cucina Rustica in Cary. The Italian restaurant in downtown Cary has seen about a 300% increase in sales on third-party delivery apps during the pandemic, LoBue said.

750 Cucina Rustica uses Grubhub and Uber Eats, and did so before the pandemic. LoBue estimated the restaurant received fewer than 10 third-party delivery orders during a normal weekend before COVID-19.

For an authentic Italian restaurant with “a warm, rustic atmosphere,” – as 750 Cucina Rustica’s website describes it – takeout and delivery “wasn’t a big thing for us,” LoBue said. Now, the restaurant offers curbside pickup and all deliveries are through third-party apps.

Not all restaurants were equally equipped to handle deliveries on short notice.

“There’s the liability aspect with the driver, the car, the employee when they’re out,” LoBue said. “It’s not that we don’t want to put our employees to work, we want to do that more than we can imagine. We’re not a pizza delivery [restaurant], we don’t have the infrastructure.”

LoBue doesn’t see service fees as a challenge. If anything, the services open up her restaurant to a wider audience. Someone in McHenry might not have driven to Cary to eat at the restaurant, but they could be more inclined to order if it’s coming to their front door.

“It’s certainly contributing to our ability to stay afloat right now,” LoBue said. “I don’t want people to think they shouldn’t use those services because it’s not going directly to the restaurant.”