Restaurants Boycott Food Delivery Platforms
- Turkish restaurant owners are facing significant financial strain due to high commission fees charged by online delivery platforms, potentially leading to a widespread boycott.
- bingöl illustrated the problem with a concrete example: when a customer places an order for 64 TL, the business only receives 616 TL after platform fees.
- He further explained that achieving visibility on these platforms necessitates advertising and promotional campaigns, adding to the financial burden.
Turkish Restaurant Owners Threaten Boycott Over High Online Platform Commissions
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Rising Costs and Diminishing Profits for Turkish Restaurants
Turkish restaurant owners are facing significant financial strain due to high commission fees charged by online delivery platforms, potentially leading to a widespread boycott. The concerns were voiced by Bülent Bingöl, the head of TÜRES (Turkey Restaurant Owners and Operators Association), who highlighted the unsustainable business model currently in place.
bingöl illustrated the problem with a concrete example: when a customer places an order for 64 TL, the business only receives 616 TL after platform fees. This demonstrates a substantial reduction in revenue before even accounting for operational costs.
He further explained that achieving visibility on these platforms necessitates advertising and promotional campaigns, adding to the financial burden. Even with indirect discounts,profits are eroded. As a notable example, a 100 TL discount on a 1,000 TL order leaves the business with only 516 TL, *excluding* shop expenses.
According to Bingöl, the current situation has left tradesmen in a precarious position, with small and medium-sized businesses struggling economically. He warned that many restaurants will be unable to remain viable on online platforms unless a more equitable system is established. He stressed the need for collaboration among all stakeholders to find a solution.
TÜRES is actively preparing to launch its own online platform as a direct response to the high commission rates. Members of this new platform will be subject to commission fees ranging from 5-10 percent, a significant reduction compared to the rates currently charged by major platforms. This initiative aims to provide a more lasting alternative for restaurant owners.
Bingöl asserted that high commissions contribute to artificial inflation, driving up menu prices for consumers.He predicts that a reduction in commission fees would result in a corresponding decrease in menu prices of at least 10 percent. This suggests a direct link between platform fees and the cost of dining.
Potential Boycott and the Future of Online Restaurant Services
If the issue of high commissions remains unresolved, Bingöl announced that restaurants are prepared to boycott existing online platforms. This potential boycott underscores the severity of the situation and the determination of restaurant owners to seek a fairer business habitat.
The development highlights a growing tension between restaurants and online delivery platforms globally, as businesses seek to balance the benefits of online ordering with the need to maintain profitability.Similar concerns have been raised in othre countries regarding the impact of platform fees on restaurant margins.