Saturday 3 December 2016

Irish restaurants find new charges hard to swallow as Just Eat increases its commission to 13pc

Published 07/04/2016 | 02:30

Service provide Just Eat says it will invest the extra revenue
Service provide Just Eat says it will invest the extra revenue

Irish restaurants are at risk of becoming "hostages" to increasing commission rates charged by online food-ordering company Just Eat, it's been claimed.

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In a letter sent to customers Just Eat increased its commission by 1 percentage point to 13pc.

When it established here eight years ago the firm charged 8pc on orders made through the service, which subsequently increased to 10pc before jumping another 2 percentage points to 12pc in 2014.

Macaris Takeaway manager Stefano Molle said restaurants are powerless to fight commission increases by Just Eat due to its large market share.

"If you decide to shut that off tomorrow you're going to lose a nice revenue stream.

"I know there's a lot of commission on it, but you lose access to those customers," Mr Molle said.

It is understood Just Eat received fewer than ten complaints over the increase.

A spokesperson for Just Eat said the money will be used to invest in technology, innovation and marketing this year.

"These investments will benefit restaurant partners in the form of increased orders and business development opportunities," the spokesperson said.

In the UK Just Eat charges 14pc for new customers and 13pc for existing customers, however the spokesperson said no further increases are planned for Ireland.

Healthy fast food chain Chopped uses the service for online bookings but its founder, Brian Lee, remains wary of leaning on it too much on it.

"If you rely on a service like Just Eat too much you can become a hostage to increase commission charges like the one just announced.

"The more you rely on Just Eat the more control they have over you," Mr Lee said.

Just Eat has spread to 1,800 takeaway restaurants in Ireland and grew its total number of orders here by 40pc last year.

Takeaway Teo's in Coolock, Dublin, said it has left the service due to increasing charges placed on orders made through the site.

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