Food app fee challenge for Sunshine Coast businesses amid economic ‘perfect storm’

As overheads rise this year, small restaurants are battling to make a profit – and delivery services aren’t helping says a popular Sunshine Coast eatery owner.

Under a “perfect storm” of rising overheads many small businesses are battling to make a profit and commission fees from delivery services aren’t helping says the owner of a popular Buderim eatery.

Austin Harm, 34, is the owner of Fresh and Fried on 72 Burnett St, Buderim, serving fish, chips, coffee and burgers since late-2020.

He said one-eighth of his weekly sales were sold via the Uber Eats delivery service, which charged him a commission fee of 30 per cent each sale.

Fresh and Fried owner Austin Harm. Picture: Asa Andersen

Mr Harm said it was “definitely challenging” to have any profit margin from these sales after Uber Eats took its cut, given his business was also juggling an increase in costs with food, staff and electricity.

“Essentially, Uber has taken the profit,” he said.

“I’d love to negotiate with them to drop their price.”

Fresh and Fried’s store in Buderim. Picture: Asa Andersen

While he barely made a profit with the service, Mr Harm said it helped market his business and access customers unable to drive to his store, adding that the service was simply “one of those things you need”.

“It’s like paying rent. It’s a necessary evil,” he said.

National Retail Association chief executive Dominique Lamb said there was “no doubt” small restaurants were being shaken by delivery services’ fees, especially amid a “perfect storm” of overheads rising this year.

Costs included food, staff, power, interest rates and superannuation.

“Small businesses are really grappling with their costs,” she said.

An Uber Eats spokesman said its service gave restaurants “choice and control” when partnering, and helped many increase their revenue.

Uber Eats stock image. Picture: Supplied

The spokesman said fees were capped at 30 per cent but could be lowered to 16 per cent if a restaurant used its own staff for deliveries, or even six per cent if they opted for pick-up only.

They added that a “significant portion” of the fees were reinvested into their service, helping cover the cost of deliveries and fund customer demand via advertising.