Chapel St restaurants turning against food delivery service apps

It’s home to some of Melbourne’s favourite eateries, so why are Chapel St restaurants turning against food delivery services like UberEats and Deliveroo?

Chapel St restaurants and the Stonnington Council are shunning delivery service apps like Uber Eats and Deliveroo to save businesses on the famous once-bustling strip from closing because of crippling costs and health risks.

A push to fight the scourge of delivery apps from local eateries is being spearheaded by the Chapel St Precinct Association in a bold world-first campaign to try and combat the closure of small businesses as trade along the famous retail strip continues to slump.

For Lease signs now litter the once vibrant strip, with dozens of shops and eateries closed, vacant or boarded as foot traffic dwindles.

But it’s not just down to greedy landlords.

Chapel St traders are shunning delivery apps such as Uber Eats and urging customers to eat out. Mayor, Steve Stefanpoulos and owner of Tokosan, Matt Yazbek in Greville Street. Picture Jay Town

Stonnington Mayor Steve Stefanopoulos said consumers are not aware of the debilitating margins Uber Eats and other delivery apps were charging small businesses behind the scenes.

“That’s the real killer,” Mr Stefanopoulos told the Herald Sun.

“The margin can be up to 35 per cent, which is just extraordinary.”

Stefanopoulos said the council wanted to show leadership in pushing restaurants to shun the delivery apps while encouraging people to eat out.

“Support local business,” Mr Stefanopoulos said.

Japanese restaurant and bar Tokosan, the former site of Greville St celebrity hotspot FOG, has recently withdrawn from delivery service apps.

Owner Matt Yazbek, said while backdoor margins charged by Uber Eats was high, it was more that he could not control the quality, or service of his food using services such as Uber Eats.

Food delivery services such as UberEats are being shunned from Chapel St restaurants.

“The food which arrives at people’s doors doesn’t reflect our business,” Mr Yazbek said.

He also worried about his food being tampered with by drivers.

“We are talking about raw fish here. It’s just dodge. I kicked all the delivery apps because the quality is just not there,” Mr Yazbek said.

“It’s a damage to our reputation. We also pride ourselves on providing a unique experience for our diners. It’s not Uber Eats that gets slammed if the food arrives to someone’s house contaminated, or not as good as what they expected.

“It’s us that cops it. It’s a control issue as well as the bottom line.”

Chapel St Precinct manager Chrissie Maus says “mum and dad” businesses were being “ripped off” because delivery services were fleecing businesses and making up to three times more money than the restaurant each sale.

“It’s almost impossible for Australian restaurants to provide their delivered meals without inflating prices, reducing portion sizes or leaving out key ingredients in order to cut costs,” Ms Maus said.

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She added the campaign “Get off the couch, Life’s Waiting on Chapel” which launches this week was a world first, where leading businesses were standing up to the delivery giants.

“Food is being delivered that looks as if it’s been through the tumble drier, there are reports hungry delivery drivers are pilfering food during transit, and the delivery giants are paying virtually no tax,” she said.

“Put simply the businesses cannot survive forever on such thin margins. If we don’t get back out and dine in, before we know it our favourites may be gone forever.”

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