DETROIT. - A post from a Chicago food truck owner has gone viral. It shows the breakdown of his cut from delivery service Grub Hub.
The breakdown displays a shocking $376 out of more than a $1,000 worth of food from his own truck, a gut punch trying to make it during COVID-19 times.
“I’m probably just breaking even,” said Tropical Smoothie Café owner Paul Goldman. “There are days that I’m losing.”
Goldman uses third party delivery services. For him, their cut is about 15 to 20 percent, but it’s a must.
“You can’t not do it, and have everyone else do it,” Goldman said. “Even if you were breaking even, you have to do it.”
For example, out of $100, $40 foes to food, $15 to workers and another $15 to delivery services/
“That leaves $30 to pay for rent, utilities, telephone, insurance, you go down the line. There isn’t much left for that 100 dollars,” Goldman said.
A study done by Grub Hub says on average restaurants keep 75 percent of sales, and they are flexible with restaurant owners.
Goldman says, it’s easier to negotiate when you’re a franchisee like he is.
“When you’re dealing with a franchise you’re dealing with 800 locations, 2000 locations and they will negotiate a better price for you,” Goldman said.
Business at his Tropical Smoothie Cafe is down more than 50 percent but the one thing steady are those delivery orders.
“It’s really nice for the consumer, especially with this virus thing you can stay home and get it delivered,” Goldman said.