Czech restaurants are asking delivery companies for solidarity

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Restaurants pay 40 percent for delivery.

  1. Oct 2020 at 20:09 TASR

PRAGUE. The deteriorating situation during the second wave of the new coronavirus pandemic has led the Czech government to take new measures and, among other things, to close restaurants again.

These are now dependent on expense through a window or delivery. It was the distribution companies that came under fire from critics, as they did not reduce their fees regardless of the economic situation of the restaurants.

As stated by the iDNES.cz server, the owners of restaurants and the Confederation of Trade and Tourism therefore called on them to show solidarity and at least temporarily reduce fees, which reach more than 40%.

Restaurants demand solidarity

The authors of the call – the Confederation of Trade and Tourism, the Association of Small and Medium-sized Enterprises and the Association of Hotels and Restaurants – also sent a similar message to meal vouchers.

They ask them to reduce their fees by June 2021, which in practice amount to 6 to 7% of the nominal value of the meal voucher, thus helping to save the restaurant business from collapse.

According to companies in the gastronomic sector, delivery companies such as Dáme potravin, Wolt, but also Rohlík.cz and Košík.cz should make this solidarity gesture, because while restaurants are fighting for every guest, the delivery business is growing significantly.

“It is no longer paying off. We are cheaper to sell something, but delivery companies keep their margins. They charge 25% of the daily menus, 30% per la carte,” complained Zlín businessman Zdeněk Babulík, who operates the Myslivna restaurant and The legend.

He uses delivery only so that he does not have to throw away food when it is not being sold. At the moment, it’s every second meal. “Besides, when someone pays with meal tickets, it’s a disaster, we’re in the red,” he added.

Economically, it doesn’t make much sense, even according to other restaurant owners.

“Taking into account the average profitability of gastronomy of 10%, we are in a total trap. In addition, we have to pay for packaging such as boxes, bags and the like,” said Luboš Kastner, co-owner of the Hospodska group, which has five restaurants in Pilsen and one in Prague.

Delivery companies defend themselves by saying that they also have their own costs, which include marketing, transport or wages. They also charge a gastronomic company for finding a customer who would not otherwise come to them.

The largest company on the market We give food to our customers without their own distribution fleet charges a margin of 30%.

“It serves to enable our restaurant partners to mediate new customers, and as long as the restaurant uses our delivery, it is primarily to cover the cost of delivery by our courier,” says director Filip Fingl. He adds that thanks to communication with guests, restaurant owners save time and staff costs.

They prefer to reach customers themselves

Restaurants tend to avoid delivery and try to reach customers on their own, for example through social media. However, this is not enough at present. In addition, some concepts are not suitable for delivery. Ideal for delivery is, for example, pizza, sushi or burgers.

“Our meals are not suitable for delivery, but we use it in one of our restaurants. We lose basically the entire margin,” said Ondřej Rákosník, co-owner of the Italian restaurant chain La Collezione, which includes ten companies, including Aromi and La Finestra In Cucina.

He therefore provides delivery in his own way, but now he prefers to close it down and send people to the brigade, because delivery itself does not make economic sense. However, it is more conciliatory towards delivery companies than colleagues from the restaurant sector. As he said, he is a supporter of the free market.

“I don’t want to judge anyone whether it’s cheap or expensive. They don’t do simple business either, and several companies have already gone bankrupt,” Rákosník added.

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