Restaurants are not happy about Just Eat’s commission increase and are looking for alternatives. They will have to start paying more commission to the platform from July 24, 2022. Europeans’s biggest online meal company is going to increase its rates from 13 to 14 percent.
Monopoly
Many restaurants are complaining about this change. “We have no profit left”, “They abuse their power” and “Restaurants don’t earn anything anymore!” are often heard statements.
But they can’t leave the platform either. The problem for entrepreneurs is that a lot of ordering is done through this big player in the meal delivery market. ‘If I stop with Just Eat, I might lose 50 percent of my customers. That’s not a choice. They really have a monopoly, no one can compete with that.’ Says Ali Badr of The Ribman.
Just Eat: ‘Sad Decision’
According to Just Eat, this decision is necessary because of rising inflation and high operating costs. ‘We understand that it is unpleasant for many restaurants’. It would be the first commission increase in years. In addition, they have increased sales per restaurant by an average of 50%.
But Vincent Anker of Burger Business in Nijmegen doesn’t agree with that: ‘If that turnover has already increased, the fixed commission Just Eat receives will also automatically increase. And recently, Just Eat raised the processing costs per order from €0,19 to €0,21.’
Customer Suffers
Sherbel Yousef, owner of a grillroom in Enschede is not happy with it either. ‘These are already very expensive times. The prices of raw materials have risen, pizza boxes have become six to seven euros more expensive per package, gas and electricity cost more. An additional one percent sounds small, but it’s a lot in these times’. He does not rule out that the customer will eventually bear the brunt of the price increases. “Eventually you will have to. Most restaurants have already raised their prices because of the increased purchase prices. But you can’t keep increasing, it won’t be fun for the customers either that way.
Alternatives to Just Eat
Soon Just Eat can count on an offensive from several sides. Hospitality businesses will be looking for alternatives to get around Just Eat. UberEats and Deliveroo are the most obvious ones of course. But more local alternatives are also being set up in various places.
They also want to encourage consumers to order directly from the restaurant owner. This can be done via WhatsApp, for example. At Conversation24, the ideal solution is at your fingertips. With our latest catalog and payment feature, you give your customers the ability to view and pay for meals directly in WhatsApp. Moreover, WhatsApp is the most popular messaging platform and you can keep your customers informed about special offers through the app. With an open rate of 99%, that message almost always arrives. Would you like to be in control as well? Then get in touch with us.
