When Uber Eats advised its restaurant companions it was elevating charges and there was nothing to barter, most operators had little alternative however to go alongside. Brandon Solano didn’t.
Solano, CEO of Rave Restaurant Group, the guardian firm of Pizza Inn and Pie 5, ended his firm’s partnership with Uber Eats slightly than soak up a charge improve he says left operators with nearly nothing to point out for his or her supply orders.
“Uber didn’t enter into good faith negotiations with us,” Solano mentioned. “They came at us with demands. ‘You’re going to pay this amount. This is a global increase. And no, we’re not negotiating.’ I just don’t do business like that.”
What triggered Pizza Inn and Pie 5’s Uber Eats cut up
In early March, Uber Eats raised market charges throughout most of its pricing tiers for the primary time in roughly a decade, per Restaurant Dive. Charges for its Lite tier rose from 15% to twenty% per order. Pickup order charges throughout all tiers went from 6% to 7%, alongside different will increase. The charges cowl couriers, new buyer acquisition, Uber One member reductions, and fee processing and insurance coverage prices.
Uber Eats defended the transfer. “This change reflects higher costs to operate a reliable delivery marketplace and helps ensure we can continue supporting restaurants, couriers, and customers,” an Uber spokesperson mentioned, per Restaurant Dive. The corporate mentioned eating places had been notified no less than 30 days prematurely and will change pricing plans or exit the platform.
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Solano was not happy. On the new charges, he mentioned operators can be left with little or no revenue from supply transactions. Paying as much as 30% per transaction, he argued, was greater than what the distributors and farmers supplying substances obtain.
“Do we really think technology is more valuable than food?” he mentioned. “I just don’t think so.”
Uber Eats didn’t negotiate with companions.
Nagle/Getty Photos
The maths behind the choice
By ending the partnership, Solano mentioned Rave averted having to lift menu costs, which might have pushed clients away. He described the exit as having “successfully negotiated the rates down to zero,”.
He acknowledged the transfer will price some quantity. “We’re going to lose some volume as a result of this,” he mentioned. “But at the end of the day, it’s volume that we make almost no money on.”
Franchisees had been supportive of the choice. Solano additionally mentioned he’s in discussions about an unique take care of DoorDash, although that has not been finalized.
What Rave is specializing in as a substitute:
- Dine-in visitors at Pizza Inn, pushed by worth choices together with an All You Can $8 buffet out there Monday by Friday
- Direct ordering by its personal web site, which Solano mentioned is up considerably
- Meals high quality enhancements and repair upgrades to drive buyer returns
- Different ordering channels corresponding to drive-thrus that add fewer prices for operators and clients
The broader warning for supply platforms
Solano’s cut up with Uber Eats arrives at a troublesome time for restaurant operators. Rising prices, tight margins, and ongoing restaurant closings have left many chains with little room to soak up charge will increase.
“I think it’s a really bad time for Uber to be trying to raise their rates with all the restaurant closings going on,” he added.
His warning extends past his personal firm. Third-party supply suppliers ought to be cautious about elevating costs too shortly, he mentioned, as a result of operators can shift from one aggregator to a different. With Uber Eats, DoorDash, Grubhub, and native gamers competing for restaurant enterprise, the leverage shouldn’t be solely with the platforms.
“These guys are competing with one another, and they should be competing for our business,” Solano mentioned. “Uber Eats, in particular, is damaging relationships with the restaurant community that they’re going to want back later.”
Rave’s monetary place
Rave Restaurant Group posted its twenty third consecutive quarter of profitability in February, per Rave’s personal earnings launch. Pizza Inn reported comparable retailer gross sales rose 2.5% in fiscal Q2 2026, whereas Pie 5 comparable gross sales fell 1.5%.
Solano mentioned the corporate is targeted on ensuring its dine-in expertise is powerful sufficient to win again clients who would possibly in any other case default to supply.
“If delivery becomes prohibitive, they’re going to push folks to other options, some of which may be cooking at home or more convenient, frozen meals,” he mentioned. “And I don’t think that’s where we want to go.”
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