CHICAGO (CBS) — Since the start of the pandemic, ordering takeout has become the norm.
But sky-high fees for third-party delivery apps could mean family businesses are on the verge of closing down. CBS 2’s Sabrina Franza spoke with an owner who leaves apps before it’s too late.
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Majani serves vegan soul food.
“Offering a service that the South Shore badly needed,” said restaurant owner Tsadakeeyah Emmanuel.
So a big part of their business is takeout
“100% of our sales are technically takeout.”
Too much of their profit goes to delivery apps.
“170,000 companies have gone through these platforms, of which $50,000 is returned to them.”
It’s almost 30%.
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“I don’t make any money. I make no profit from this model.
Mejani has already closed two other sites during the pandemic. After the city’s temporary limit on 15% third-party delivery charges expires, they’re also closing their Uber Eats, GrubHub, and Seamless accounts.
“If you want us to survive, go to our website. Order through our website,” Emmanuel said.
Even if it means losing visibility or a clientele, they take the risk of a higher reward.
“I think we’d be better off investing those dollars in local advertisers that we have a better relationship with rather than someone who doesn’t invest in our community,” Emmanuel said.
To try to sway customers, Majani has stapled cards to every takeout order that comes out.
A statement from Uber Eats the week of Jan. 4 says that for 79 sales, the restaurant paid Uber Eats $686, or nearly a quarter of its pretax revenue.
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CBS 2 asked Uber Eats for a breakdown of their fees and asked the company to justify why their percentage is so high when businesses still rely on takeout orders during the pandemic. The company has not yet responded.