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Delivery Deals Hide Hidden Food Markups
15 Mar
Summary
- Customer found significant price hikes on food when selecting delivery.
- Apparent 'free delivery' offers masked 30% menu price increases.
- This pricing strategy is common across major restaurant chains.
Hungry customers are facing unexpected costs as convenience food prices increase, especially for delivery. A recent viral post highlighted how menu prices can surge when switching from pickup to delivery within a restaurant's own app. One diner observed a salad priced at $10.15 for pickup jumping to $13.19 for delivery, an increase of over 30 percent.
This practice is not unique to one chain; industry analysts confirm that higher menu prices for delivery are common across the restaurant sector. Even when ordering directly through a brand's app, the delivery is often handled by third-party services that charge restaurants substantial commissions, ranging from 15 to 30 percent.
To offset these costs, restaurants employ 'delivery pricing,' a strategy where menu items are priced higher exclusively for delivery orders. This occurs even with promotions like 'free delivery,' leading to consumer confusion. While restaurants cite increased preparation, packaging, and delivery costs, consumer advocates point out the potential for misleading promotions, emphasizing that pickup remains the most economical choice.
