Restaurant owners have no ch... > 경제기사 | economics

Mr. Bang 52, who runs a kimbap restaurant, considered not using the app of Baedal Minjok Baemin, Korea’s major food delivery platform operator, in July when the company raised its commission rate from 6.8 percent to 9.8 percent. The more he sold menus under 20,000 won, the more he lost. However, it was impossible to operate the restaurant if he immediately stopped using the delivery service app, which accounted for half of the total sales. “I wanted to leave the platform right now, but it was difficult because my sales were highly dependent on the app,” he said, adding, ”I am now trying to pioneer new sales routes, such as public delivery service apps.”


A significant number of restaurant owners are considering leaving delivery apps, but few are taking action due to concerns about falling sales.

According to a survey conducted by the Korea Food Service Industry Research on October 16 and 17, which surveyed 110 restaurant owners nationwide, 88 of them 80 percent said they had considered leaving delivery apps due to high commission. However, three out of four 73.9 percent of those who considered leaving the apps did not actually do so. The most common reasons given for not doing so were that they had no alternative, such as “competitors are using delivery apps” and “No way to deliver the food without apps.”

Respondents were relying on delivery apps for a significant portion of their sales. The most common response 41 respondents was that delivery apps accounted for between 20 and 40 percent of their total sales. This was followed by between 0 and 20 percent 28 respondents and between 60 and 80 percent 14 respondents.

The amount of money they spend on delivery apps, including advertisement costs, is higher than the delivery commission rate. The commission rates of the three major delivery service platforms, including Baemin, are between 9.7 and 9.8 percent. However, the most common response 37 respondents was “more than 25 percent of sales” in terms of spending on delivery apps including advertising. This was followed by between 15 and 20 percent 35 respondents and between 10 and 15 percent 16 respondents.

When it comes to the upper limit on commission, two out of three 67.3 percent answered "positive," far more than "negative" 14.5 percent. “The delivery app market is saturated, and delivery service platforms are engaging in cutthroat competition,” said Lee Eun-hee, a professor of consumer studies at Inha University. ”The government should step in and come up with policies, such as a cap on delivery commission.”



Kim Se-hoon

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