Third-party delivery costs a threat to restaurants, says R&CA

Health & Leisure
Tuesday, 19 November 2019
Restaurants across Australia will be forced to raise prices to stay in business, according to a new survey by Restaurants & Catering Australia (R&CA). 
Its 2019 annual benchmarking report shows that restaurants are struggling to make ends meet, dealing with rising below-the-line costs and delivery platforms that demand high commissions.
Wes Lambert, chief executive R&CA said: “This year, we are seeing more restaurants struggle.  
 
"A number of rising and additional costs that consumers don’t consider are putting extreme financial pressure on restaurant owners.  
 
"Food prices have soared as farmerscombat the drought and costs such as rents, wages and utility prices continue to rise.  Also, restaurant, cafe and catering businesses are left to contend with the hefty chunk delivery platforms take out of the profit.  It’s a battle that business owners are slowly losing.

“We encourage people to go to restaurants to either pick up their food or dine in, rather than use a delivery platform. Convenience is obviously a strong driver for patrons, but it is important diners understand that restaurants will close if something doesn’t change soon. 
 
"Our call to the Australian dining public is to be prepared for their local restaurant, cafe or caterer to raise their prices to ensure they survive. 
 
"These businesses cannot continue to pay the high commission forced on them by delivery platforms on top of rising costs across the board. Something has to give or businesses will be forced to close."

Third-party delivery costs a threat to restaurants, says R&CA

Health & Leisure
Tuesday, 19 November 2019
Restaurants across Australia will be forced to raise prices to stay in business, according to a new survey by Restaurants & Catering Australia (R&CA). 
Its 2019 annual benchmarking report shows that restaurants are struggling to make ends meet, dealing with rising below-the-line costs and delivery platforms that demand high commissions.
Wes Lambert, chief executive R&CA said: “This year, we are seeing more restaurants struggle.  
 
"A number of rising and additional costs that consumers don’t consider are putting extreme financial pressure on restaurant owners.  
 
"Food prices have soared as farmerscombat the drought and costs such as rents, wages and utility prices continue to rise.  Also, restaurant, cafe and catering businesses are left to contend with the hefty chunk delivery platforms take out of the profit.  It’s a battle that business owners are slowly losing.

“We encourage people to go to restaurants to either pick up their food or dine in, rather than use a delivery platform. Convenience is obviously a strong driver for patrons, but it is important diners understand that restaurants will close if something doesn’t change soon. 
 
"Our call to the Australian dining public is to be prepared for their local restaurant, cafe or caterer to raise their prices to ensure they survive. 
 
"These businesses cannot continue to pay the high commission forced on them by delivery platforms on top of rising costs across the board. Something has to give or businesses will be forced to close."