GrubHub

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Restaurant owner’s viral receipt appears to show Grubhub keeping a ton of money from orders

'Stop believing you are supporting your community by ordering from a third-party delivery company.'

 

Samira Sadeque

IRL

Published May 1, 2020   Updated May 1, 2020, 9:36 pm CDT

A Chicago pizzeria owner’s receipt showing the amount Grubhub held on to for a month’s worth of orders has gone viral.

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Giuseppe Badalamenti, who said he’s the owner of Chicago Pizza Boss, shared a photo of the receipt on Facebook on Wednesday.

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“Stop believing you are supporting your community by ordering from a 3rd party delivery company,” Badalamenti wrote in the post. 

The receipt, a summary of March transactions for the company through Grubhub, shows that there were 46 orders made via the app that month, which were worth $1,042. After a list of expenses that Grubhub charged, the restaurant got to keep $367 of that amount. That’s about 33% of the total amount.

“It is almost enough to pay for the food,” Badalamenti wrote. He did not respond to the Daily Dot’s request for comments. 

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His post was shared by journalist Susie Cagle on Twitter on Thursday, garnering thousands of likes and shares.

“Please, please, please….if you really want to help your local restaurants––go pick up the food yourself…Grubhub, DoorDash, UberEats are part of the reason they are continuing to suffer,” wrote one user on Facebook. 

But Grubhub spokesperson John Collins said in a statement to the Daily Dot that restaurant owners select the services they want and only pay a commission to the app when “we help generate sales.”

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“Grubhub is happy to work with restaurant partners to help them manage costs and grow their business,” Collins said.

Some users tried to justify the fees, stating that the services provided by Grubhub would cost restaurants if they needed it to do it for themselves. 

“If there was no third party the restaurant would have to hire four to seven drivers and pay them for the hours even when it’s slow + all worker benefits,” wrote one user. 

Grubhub also says that this invoice is an outlier and not representative of its average transactions with restaurants, which results in a restaurant receiving about 75% of the net sales.

One user on Facebook echoed this in their comment on Badalamenti’s post.

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“They shouldn’t be losing money and these numbers don’t jive with what my sales and pay outs are vs theirs,” wrote Anthony Galetti, who identified themself as a restaurant owner that works with Grubhub.

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*First Published: May 1, 2020, 9:35 pm CDT