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Source:
الوطن
Investors: Delivery apps cut restaurant sales in half
The article reveals that delivery apps siphon off between 42% and 50% of restaurant sales due to platform fees, commissions, and additional costs. Some platforms impose a basic commission of up to 21%, along with marketing, advertising fees, and discounts that the restaurant must bear. Investors also note that restaurants often pay up to 5,000 riyals monthly to increase their visibility within the app, while their profits decline as costs rise, with profit margins remaining limited before these additional expenses. Restaurant owners are calling for a cap on commissions, suggesting a range between 15% and 20%, and emphasizing the need for transparent disclosure of all costs. They also advocate diversifying sales channels and reducing reliance on platforms to achieve better financial sustainability.
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