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Carl Sherman

On capping restaurant delivery app fees

Fine by me, but I’ll bet more than fifteen percent of my most recent delivery tab that this does not go anywhere.

Rep. Carl Sherman

High delivery fees by third-party apps, such as DoorDash and Uber Eats, are often cited by restaurant operators as a source of financial strain, especially during the coronavirus pandemic. A new bill filed in the 87th Texas Legislature is seeking to cap the fees food delivery services charge restaurants at 15 percent.

The industry standard hovers around 30 percent of a customer’s order, depending on the platform. This would be significantly reduced across the state if the bill passes.

“This is one of my wishes for 2021,” says Alex Au-yeung, the chef and owner of Phat Eatery in Katy.

Au-yeung used Grubhub, DoorDash and Uber Eats at one point, but he got rid of them even before the pandemic. Phat Eatery now operates its own delivery system. With razor-thin profit margins, a fee that high is untenable for restaurants, he says: “If you give 30 percent away, how can we survive?”

Rep. Carl Sherman Sr. introduced H.B. 598 in the House after he heard from restaurant owners in his DeSoto-area district that the high delivery fees were creating hardship for their business.

“The impact of COVID exacerbated the problem,” Sherman says. With dining rooms closed, then reopened at lower capacity, restaurants had to rely on takeout and delivery, often turning to third-party apps. “They were unable to factor in the levied costs from these delivery services,” he says.

Chef Justin Turner closed all four locations of his popular Bernie’s Burger Bus restaurants this year. While he said there were many factors at play, high delivery fees were one of them. Turner signed up for the services because he saw the convenience of delivery become increasingly popular with customers. He said representatives for the companies told him he would see an increase in business by being on the platforms, but he hasn’t found that to be the case. Instead, Turner noticed sales simply shifting away from dine-in to carryout over time. The pandemic made this worse.

“People want the convenience,” Turner says. “Especially in a COVID world, being able to get food dropped off at their door without talking to a person or touching a person.”

Turner adds that these fees also affect the customer. He’s already seen some restaurants increasing to-go prices to make up for the high commission from delivery apps. In his opinion, most food doesn’t travel that well, so people are paying more money for lesser quality than is offered by dining in person.

[…]

Besides the high commission, Au-yeung had other gripes about the delivery apps. His team couldn’t communicate directly with people ordering through the platforms, which made the restaurant’s mission of great customer service impossible. And while he made the decision to leave DoorDash, he found it impossible to take Phat Eatery down from their website. He says he’s tried to contact the company, to no avail. To turn people away from ordering through the app, he edited the menu items to read “Do not order here.” He also jacked up the prices to discourage people.

One service Au-yeung likes, though, is Favor Fleet, an offshoot of the local delivery app now owned by H-E-B. If the restaurant is busy and short-staffed for deliveries, he can request drivers from Favor Fleet on-demand, for a flat fee of $7.50 per order. “That, I can deal with,” he says.

Turner says he favors the bill’s passage but is skeptical about its chances in the Legislature.

“I don’t think, with two publicly traded companies and lobbyists, that this is going to make it further,” he says. “You’re asking them to cut their profits, that they’ve been making for a long time now, in half.”

I suspect that is absolutely correct. This will be smothered by lobbyists before it ever has a chance to breathe. It’s still worth bringing up. Personally, I never use delivery services for takeout. I pick it up myself, which is the only way I can be sure that the money I’m spending goes entirely to the restaurant. It helps that 90% of the time I’m ordering from a neighborhood place, but still. And when this damn pandemic is over, I’m going back to dining in most of the time. Restaurant food tastes best when it’s right out of the kitchen, and no amount of convenience makes up for that to me. Your mileage may vary.

2018 primary runoff results: Congress and Legislature

All results are here. I began drafting this around 9:30 when there were still a bunch of precincts out, but with the exception of the tossup in CD25, all of the Congressional races were pretty clear by then:

CD03: Lorie Burch
CD06: Jana Sanchez
CD07: Lizzie Fletcher
CD10: Mike Siegel
CD21: Joseph Kopser
CD22: Sri Kulkarni
CD23: Gina Ortiz Jones
CD27: Eric Holguin
CD31: MJ Hegar
CD32: Colin Allred

At the time I started writing this, Julie Oliver led in CD25 by 70 votes out of almost 18,000 cast and about three quarters of precincts reporting. Later on, she had pulled out to a five point lead, so add her to the winners’ list as well.

On the legislative side, Rita Lucido was leading in SD17, Sheryl Cole had a modest lead in HD46 with most precincts reporting, Carl Sherman had a much bigger lead in HD109, and longtime Rep. Rene Oliveira had been shown the door.

As for the Republicans, Dan Crenshaw won big in CD02, Lance Gooden won in CD05, so no more Republican women in Congress, Chip Roy and Michael Cloud led in CDs 21 and 27, respectively. The wingnuts in HDs 08 and 121 lost, and incumbent Rep. Scott Cosper lost.

Congratulations to all the winners. I’ll have some more coherent thoughts on all these races in the next day or so.

Runoff races, part 2: Legislative

There’s one Democratic primary runoff for SBOE, one for Senate, and seven for the House. Here’s a brief look at them.

SBOE12

Suzanne Smith
Laura Malone-Miller

Smith led with 48.12% in March to Malone-Miller’s 26.31%. Smith has the DMN endorsement, while Malone-Miller doesn’t have a website. This is a Republican open seat – Geraldine “Tincy” Miller won with 61% in 2014 but is not running for re-election. This district went for Trump by a small margin in 2016, 50.1%to 44.4%, so it’s a dark horse contender to be flipped.

SD17

Rita Lucido
Fran Watson

Lucido, the 2014 candidate in SD17, nearly won this outright in March, finishing with 48.96% to Watson’s 35.09%. My interview with Lucido is here and with Watson is here. They’re both good candidates and good people.

HD37

Rep. Rene Oliveira
Alex Dominguez

Rep. Oliveira picked a lousy time to get busted on a DUI charge. That’s the sort of thing that tends to held usher Democratic incumbents out of office. Dominguez is a Cameron County Commissioner, so he’s a real threat to Oliveira, who led 48.48% to 36.40% in March.

HD45

Rebecca Bell-Metereau
Erin Zwiener

HD46

Jose “Chito” Vela
Sheryl Cole

HD47

Vikki Goodwin
Elaina Fowler

HD45 used to be a mostly rural district that elected a Democrat from 2002 through 2008 when rural Democrats were common enough, then went Republican in 2010 and has stayed that way as the district has become more suburban as San Marcos and the northern parts of Hays County have grown like gangbusters. Bell-Metereau, who led Zwiener 45.49% to 30.63% in March, is a three-time SBOE candidate, while Zwiener is a children’s author and Jeopardy! winner half her age. This is the kind of district Dems need to win to really make gains in the House, and there’s more focus and optimism on that score than we’ve seen this decade.

HD46 is the seat now held by Rep. Dawnna Dukes, who lost in the primary. The winner of this runoff will be the next Rep; there is a Republican, not that it matters, and an independent candidate who was going to be in a special election to succeed Dukes that never happened dropped out after the March result, citing the fact that both Vela and Cole are fine by him and more importantly to him not Dukes. Thanks to Dukes’ high profile and the fact that a win by Vela could mean there are no African-American legislators from Travis County (see below for HD47), this is probably the hottest House runoff on the ballot. The Trib, the Statesman, and the AusChron all have recent coverage. The score in March was 39.52% for Vela and 38.23% for Cole.

HD47 is the one Travis County district held by a Republican; Rep. Paul Workman rode the 2010 wave and got a friendlier map in 2011, but the district is not deep red and if there’s a year he could be in trouble, this is it. I really haven’t followed this one and only learned about these candidates while writing this post, but there’s coverage in the Statesman and AusChron if you want to catch up. The AusChron endorsed Fowler and Vela; Fowler is African-American so if she makes it all the way then Travis County would still have African-American representation at the Capitol.

HD64

Mat Pruneda
Andrew Morris

Another race I haven’t followed. HD64 is in Denton County, where incumbent Rep. Lynn Stucky is a ParentPAC endorsee. The district is in Denton County and it is red but not super duper red, though it is redder than neighboring HD65. The latter will flip before this one does, but it will be worth keeping an eye on it to measure progress.

HD109

Deshaundra Lockhart Jones
Carl Sherman

This is the seat being vacated by the retiring Rep. Helen Giddings. The runoff winner will be sworn in next January. Both candidates exceeded 40% in March, with Jones leading by four points. Sherman is the former Mayor of DeSoto, and he has the DMN endorsement. Jones is also from DeSoto and has served a couple of terms on its City Council. This race, along with the one in HD46, are rare instances this year where a female incumbent could be succeeded by a male candidate. (I overlooked the HD109 race when I wrote about the gender of primary challengers in January.) Sheryl Cole is an Annie’s List candidate but Deshaundra Lockhart Jones is not; I don’t know if that means something or not. Just wanted to mention it.

HD133

Sandra Moore
Marty Schexnayder

Moore missed hitting the 50% mark by four – count ’em four – votes in March, though I should note that Schexnayder topped forty percent as well. They’re both good candidates and good people, running in a tough district, and I interviewed them both in March – Moore here, Schexnayder here. Moore has the Houston GLBT Political Caucus endorsement, Schexnayder has the Chron. Like I said, they’re both good, so pick who you like and you can’t go wrong.