Page 83 - SHARP November 2021

That movement led to government intervention at a local level, with a number of provinces enacting mandates to cap the fees that each third-party app was allowed to impose (usually, 30 per cent of an order). In March of 2021, for example, Bill 87 officially passed in Quebec, noting that any platform with at least 500 restaurant customers could charge no more than 15 per cent for deliv- eries. Other provinces introduced similar laws during the pandemic and have yet to go back to the old ways.
“The percentage charged by apps was very high until the bill passed,” says Assou- line. “The problem is the shortness of staff. It was so easy to get unemployment that peo- ple stayed home. The government supports us in a lot of ways, but they also created a worker shortage. After COVID-19, they need to help the whole industry, as restaurants have been hurt very badly and the chain of supply is broken.”
Although the government stepping in to safeguard the livelihood of local businesses may have helped, restaurant owners them- selves have banded together to try to make a difference by setting up co-operatives meant to safeguard the rights of the eatery itself, the drivers, and consumers that can opt to be members of the system.
Radish, one such co-operative, hires delivery folks as employees and not gig work- ers, guaranteeing them associated rights. The couriers are paid a salary in addition to earning tips and benefits.
“Any profits made are redistributed to the restaurants and drivers in proportion to their involvement in the co-op,” says Radish CEO and restaurant owner Mansib Rahman. “Restaurants that bring more orders to the platform and drivers who work more hours stand to earn a higher share of the profits.”
The overall consensus seems to be that
the pandemic accelerated industry changes that were already underway. UberEats and DoorDash had already sent shockwaves through the industry, signalling the potential to be part of a city’s culinary pulse without actually making food.
“COVID acted as a catalyst and accelerant more than anything,” says Rahman. “It forced a lot of restaurants who were less competitive to either adapt or shutter. Those with more affordable leases, better employee retention due to loyalty, menus with higher profit mar- gins, increased adoption of line delivery, and pickup solutions fared better than those who didn’t. In practice, it means that McDonald’s fared better than the mom-and-pop shops.”
Shea echoes Rahman’s sentiments. “Delivery fits into the overall digital trans- formation of the restaurant industry,” he explains. “This happened in the hospitality industry about 15 years ago, when people moved to third-party platforms to order plane tickets or book hotels.”
Solutions that would benefit all parties involved aren’t easy to come by. It’s clearly not as simple as suggesting that third-party app fees should be capped, as those platforms are helping restaurants reach a larger cli- ent base they would otherwise not have had access to. On the other hand, restaurants already work within tight margins, and addi- tional fees may simply squeeze them too thin.
Diners are slowly trickling back in- doors, but delivery is here to stay. “There remains a massive digital opportunity for restaurants,” says the DoorDash spokes- person. “While the pandemic served as a catalyst for many restaurants’ adoption of digital technology, including delivery, there is still an exciting opportunity for small businesses by leaning into all sides of their business — in-store, online, and through third-party partners.”
Ultimately, the traditional restaurant model will be forced to adapt, if the rise of ghost kitchens — facilities dedicated to the cooking of delivery-only meals — is any indication. “We’re likely to see a shift in the type of restaurant business models that succeed in the coming decade,” says Rah- man. “We’re already seeing ghost kitchens take hold in many markets, often with the backing of the delivery platforms or restau- rant chains themselves. With consumers increasingly interacting with restaurants purely through apps, this trend is only likely to accelerate.”
Regardless, one thing is for sure: the re- lationship between restaurants and third-par- ty platforms is in flux. “I think you need less animosity between the restaurants and the delivery companies,” says Shea. “But I don’t know how you repair that, because if you talk to any owner about delivery, the first thing they do is complain about the fees. But at the same time, they understand they need the delivery services.”
There is, however, an aspect to the in- dustry that those involved in conversations about the importance of delivery seem to gloss over: the actual act of dining out, which could never be replicated by any third-party app. Of course, given the conditions dictat- ed by a pandemic that forced everyone to stay indoors for over a year, takeout options flourished. But hopefully, the future will not look like our present, and diners are sure to soon crave the experience and atmosphere that only eating inside a restaurant can guarantee. When that happens, third-party apps, ghost kitchens, and any other party that benefits from off-premises dining will have to modernize once again, and figure out how to survive while adjusting to humans’ fluctuating lifestyles. After all, we won’t be ordering in forever.
SHARPMAGAZINE.COM
NOVEMBER 2021 83