Delivery Platforms’ Fees: A Heavy Burden on Self-Employed Restaurants

According to a recent investigation by the Fair Trade Commission, self-employed restaurants that earn 1 million won through delivery platforms pay approximately 240,000 won to the platform.

The findings were shared at the fourth win-win council meeting between the distribution platform and store companies, which took place on the 10th.

A survey of 293 stores, conducted in July last year in collaboration with the Korea Restaurant Industry Association, revealed that various costs associated with using delivery platforms account for 24% of sales generated through the platform.

These costs include brokerage fees, payment fees, delivery fees, and other expenses. Variable costs accounted for 13% of sales, while the average operating profit ratio of delivery apps was found to be 7%.

The win-win council aims to continue discussing ways to alleviate the burden on self-employed restaurants, including reasonable fees, with the goal of establishing a win-win plan by the end of October.

To support small and medium business owners, the government plans to provide promotional expenses for public delivery apps with low commission fees, such as ‘Daenggyoyo.’ Additionally, the government will cover delivery and shipping costs up to 300,000 won per year for eligible business owners starting next year.

Key Statistics:

• 24% of sales generated through delivery platforms go towards various costs
• 13% of sales are variable costs
• 7% is the average operating profit ratio of delivery apps

Government Support:

• Promotional expenses for public delivery apps with low commission fees
• Delivery and shipping costs covered up to 300,000 won per year for small and medium business owners