Stonnington traders say food delivery apps add ‘no value’ to their businesses
Popular Chapel St eateries are ditching Uber Eats and other home delivery apps, with restaurateurs sick of “selling their soul” to the tech they say is also shrinking profits and affecting food and service quality.
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Eateries in Prahran, South Yarra and other inner-city suburbs are turning away from delivery apps, saying the technology is shrinking profits and destroying the quality of the food.
Stonnington Leader spoke to traders in the area who said they had stopped using food apps in recent months, as commissions of up to 35 per cent meant they added “no value” to their businesses.
Alison Baker, who owns Alison’s Corner Shop (& Bread) in Prahran, said she had refused offers to join food delivery companies as she didn’t want to sell her soul to the technology.
“I have a great rapport with my customers that simply wouldn’t translate in any way if they had my food delivered by an app service,” Ms Baker said.
“I put my heart and soul into the food I make and to see it commodified would be devastating.”
Katherine Sampson, who owns Hello Sam Burgers on Chapel St, said delivery apps had completely changed her business model — and not necessarily for the better.
“Sales are up, but customers in-house are down. Unfortunately, it’s the way of the future with people wanting the convenience of eating at home or work, simply by clicking a button,” Ms Sampson said.
“With the apps taking a commission of 35 per cent and fewer customers instore — our kitchen is still pumping out burgers, but we would love people to come into the restaurant and socialise with friends because that’s being missed,” she said.
Matt “Lanis” Lanigan, who owns Lucky Penny on Chapel St, said his business stopped using food delivery apps in recent months as it was causing less patrons to visit the restaurant.
“When people are in the store we can upsell extra drinks sides, which is our cream in the restaurant. Obviously, this can’t happen on the delivery service,” Mr Lanigan said.
“I believe that the reason we are busier now more than ever on weekends is that we don’t offer delivery service and people have to come to the restaurant to get our amazing food.”
Another trader, who works at a local Japanese restaurant, said business had boomed since they forfeited the apps.
“We have noticed an increase in patronage since removing the apps — people are actually coming in and socialising with each other and enjoying a meal,” he said.
Consumer expert Dr Gary Mortimer said the challenge traders faced with delivery apps was giving up the control of the final product when it arrived to the consumer.
“I think it’s a smart move to encourage diners to visit a cafe or bistro because it’s a very different experience eating in that type of atmosphere — rather than sitting at home on the couch,” Dr Mortimer said.
Chapel Street Precinct Association general manager Chrissie Maus said she urged consumers to support their favourite eateries.
“We (CSPA) are about to be brave and shine a light on some serious issues impacting our Chapel Precinct traders and aim to make consumers aware of the flow-on effect their lifestyle changes and seemingly small decisions are actually having,” Ms Maus said.
“We have seen record numbers of new businesses opening in our precinct during the last quarter. The average spend per daytime shopper has actually increased to $89.”
An Uber spokeswoman said the company had 16,000 active restaurant partners and wanted to ensure their businesses thrived.
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She said the company took quality control seriously and worked closely with its restaurant and delivery partners to make sure it was continually improving and perfecting its delivery methods.
“The restaurant service fee helps connect our restaurant partners to a large network of delivery partners and customers,’ the spokeswoman said.
Deliveroo have been contacted for comment.
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