Study Finds Which Chains and Delivery Apps Charge The Highest Markups
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Finance BuzzThe study was conducted to determine the amount of money that consumers pay for food delivery services. Their findingsThe results are astounding. Researchers studied the costs of 10 orders from 11 restaurants on Uber Eats and GrubHub. They also looked at DoorDash, Postmates, and DoorDash. The chains that were examined were Cava and Chick-fil -A. Chipotle, Dunkin, Jason’s Deli, Jersey Mike’s, McDonald’s, Panda Express, Panera, StarbucksTropical Cafe. They then analysed how much each restaurant and platform charged in additional fees such as taxes, tips and delivery charges.
Chick-fil A’s customers face the highest delivery markups of all the restaurants studied. The chain charges anywhere from 82 to 149 per cent more on delivery apps than their in-store prices. GrubHub charges $23.01 or Uber Eats $16.87 for an order that costs $9.25 when you buy it in store.
Coffee kings StarbucksYou can also find out more about the following: DunkinOnline consumers are seeing menu markups ranging from 52 percent (GrubHub), to 102 cents (Postmates). A $9.48 online order can cost up to $19.12, depending on the app.
Tying for third place were fast-casual Mediterranean chain Cava and fairly small, Texas-based establishment Jason’s Deli, which boasts just 245 locations. Both chains have seen their delivery app prices increase by 47 percent (GrubHub), and 87 percent for Postmates.
The increase in prices over the store prices was significant even for restaurants that experienced less app inflation. A lunch order from ChipotlePostmates can turn a $18.42 order into nearly $40. A $11.18 order from McDonald’sThe same app will now cost you $19.96, a 79 percent price increase.
In terms of fees charged by the apps, PostMates was unsurprisingly found to have the highest markups, with the service charging as much as 105 percent more than an item’s given menu price. The study found that ordering just a muffin and a beverage from Starbucks through Postmates costs twice as much as ordering the same order at a store.
DoorDash had a 95 percent markup over the menu prices. GrubHub users enjoy a 93 per cent increase while Uber Eats users do relatively well. They only see a 80 percent increase in the menu prices.