The recent article about Wolt received some feed-back from a few restaurant owners who.
They told FinnishNews that delivery companies have offered them a useful service during the pandemic, but they wanted to speak about a few issues that they felt need to be aired.
The delivery companies charge around 30% of the menu cost for delivering the food. The restaurant business is very competitive and profit margins are slim. These two restaurants charge around €12 to €14 for a single normal meal without drinks. The cost of the ingredients, staff, rent, taxes and other regular costs eat up around 70% of the costs, so 30% paid out to the delivery companies means that there is no incentive to deliver food in normal times. However, if there just a few paying direct customers because of Covid, it is worthwhile just to cover costs by cooperating with the delivery companies.
But there is another solution for many restaurants have discovered. They have stopped selling food for delivery from the best fresh ingredients and started to cut corners aggressively with a short delivery-planned menu where the bulk of the meal is rice, pasta or other low-cost hydrocarbons. The other more expensive ingredients like fish, chicken, cheese and meat are reduced to a minimum or used as a flavouring in a sauce of flour, sunflower oil, and water with a dash of sugary ketchup to add colour… low cost carrots, onions, tinned tomatoes and sliced cabbage can be added to give the impression of a healthy meal.
The result is not good – delivered food is appearing to cause a lowering of food standards and increasing the risk of obesity, at a time when people are exercising less…
Investors are clamouring to get onboard in these companies when profits are made by taking advantage of desperate restaurants and the understandable plight of deliverymen…
… and where do the investors, private equity companies and venture capital companies, get the cash for these investments. Large amounts come from our pension companies… hmmm.
Photo:Argentina – Great Food by Dennis Jarvis from Halifax, Canada