A Palm Springs restaurant has decided to start offering food delivery service to its customers because other third party vendors like Uber Eats and Grub Hub continue overcharging, going against city orders. The city of Palm Springs passed an ordinance earlier this year limiting delivery fees on take-out orders.
“It’s basically capping the amount of delivery fees that they can charge, so for example if the meal you ordered is $10, 15% is capped, so the delivery fee that they could charge would be $1.50,” said David Ready, City Manager of Palm Springs.
But Johannes of Palm Springs says not all vendors are abiding by the ordinance, so they’re offering their own delivery service.
“The reason why is because door dash is the only one who charges the appropriate fees of 15%, everyone else, Grubhub and Uber charges 30% for delivery, for pick-up, for take-out, and we’re not happy with that,” said Johannes Bacher, Owner & Chef of Johannes.
The restaurant has been in touch with both Uber Eats and Grubhub, but say they haven’t seen any changes.
“I get emails back from uber eats, we comply with every city that we work with, there’s no problem, we’ll be passing this along to our legal team, you don’t have to do anything. it’ll automatically change and it’s for all restaurants in palm springs,” said Kathleen Bennett, Publicist of Johannes.
This is the first-week Johannes is trying out their new service which they say is being received well. For the time being, they are still accepting orders through third-party vendors, but are strongly pushing their new option.
“They would call the restaurant and place their order, they will be told what time their food will be ready and were going to get their address, and what time to expect it at their door. it’s that simple,” explained Bennett.
“They need to make money, I need to make money. fifteen percent is doable but 30% is a lot, that basically takes my return, my earnings away. I think they need to adjust it in order to do business with us and they should not take advantage of the situation we are in right now,” said Bacher.