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Restaurants might actually lose money through Grubhub and similar services

(BUSINESS MARKETING) Restaurant owners are asking themselves if third-party food delivery apps are nothing more than a good, old-fashioned shakedown.

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grubhub site

If you haven’t seen the GrubHub receipt that has everyone outraged, you probably should. It exposed the food delivery apps for their unreasonably high commissions and excessive charges to the restaurants (on top of the changes to the consumer).

Many people, in an honest attempt to support local restaurants while staying home and safe these days, have started ordering out from their favorite small, local eateries. And they should! This could be the lifeline that allows those restaurants to survive being closed for upwards of a month. However, if they order through a third-party food delivery service, they need to know that a good chunk of their money goes to the service, not the local business. Plus they are paying extra for the service.

It’s a big bummer, to say the least, a bamboozle some might say. Why would restaurants agree to use these services at all, then, if they aren’t beneficial? Well, they initially served the purpose of helping smaller restaurants and food trucks sell to a wider customer base without having to incur the cost and manage the logistics of offering delivery. Not all of the charges are immediately apparent, either, although I am sure they are in the business agreement.

GrubHub, DoorDash, Postmates, UberEats all charge eateries a commission between 15%-30% to even work with them. This is for the most basic level of service. When GrubHub, for example, wants to stimulate more sales, they may offer a deal to consumers. This could be a dollar amount or percentage off of a customer’s order or free delivery.

Everybody loves a deal, so these promotions are effective. They drive more sales, yay. The restaurants, however, incur the full cost of the promotion. You would imagine GrubHub would share that cost, but no, they don’t. If that weren’t unscrupulous enough, GrubHub then charges the business the commission on the full, not discounted, price of the order. Unctuous, right?

Sure, restaurants have to opt in for these specials and other promotions the third-party apps are marketing, so they know there’s a fee. Yet, if they don’t opt in, they won’t appear as an option for the deal in the app. It’s deceptive, feels like a bit of extortion to me. All of these delivery apps have some sort of similar way to rack up fees. For a mom-and-pop food truck or restaurant, the commissions and fees soon eat away at the already small profit margins restaurants usually have.

It’s simply wrong, so wrong. But wait, there’s more! Another nasty, duplicitous practice GrubHub (specifically GrubHub) has implemented, with Yelp’s help, is to hijack the restaurant’s phone number on Yelp. This means if you look up your favorite restaurant on Yelp, and call in an order from the Yelp platform, your call will actually go to GrubHub instead. And get this–they charge the restaurant even if you pick up the order yourself, not only for delivery.

These third-party companies have even started buying up domain names similar to the restaurants to further fool patrons into ordering through them. They also have added restaurants to their platforms, even if the restaurants haven’t agreed to work with them. They seem willing to do anything to get a cut of restaurants’ hard earned dough (and ours). Loathsome! How are these scams even legal?

It happened to me recently. I kept trying to order for pickup at the restaurant, but somehow the order kept going through GrubHub. Bamboozled!

RVB bamboozled

This boils my blood and breaks my heart for these restaurants. In my other life, I am a blogger for a hyperlocal blog whose sole purpose is to highlight, celebrate, and promote local everything. I’m also the internal marketing chair for the Austin Food Blogger Alliance, where we work with local restaurants, distilleries, breweries, and such to promote them and help raise their visibility in the community.

I only bring this up, because I’ve sat with these restaurant and food truck owners, listened to their stories, seen the fire in their eyes as they talk about their recipes. They’ve regaled me with stories of how they got started, what inspires them, and when they had their first successful day. It’s delightful to see the intensity of their enthusiasm for sharing good food with people and how much of themselves they put into their restaurants.

In the original post that lifted the curtain on this shady practice, the Chicago Pizza Boss food truck owner Giuseppe Badalamenti, says the money he got from his GrubHub orders was “almost enough to pay for the food.” Badalamenti had participated in some promotions, which admittedly reduced his cut dramatically, yet the whole premise came as a shock to customers who have been spending their dollars to keep these local businesses afloat. Then here comes the third-party apps, poking a hole in the floaties.

It comes across as downright predatory. Thousands of people have sworn off these apps in favor of calling the restaurant directly for pickup if you are able. This way, you ensure the business you want to support gets the full bill amount. You can get the restaurant’s number directly from Google Maps or the business’s social media or website. This is the best way to help your favorite places stay in business.

Joleen Jernigan is an ever-curious writer, grammar nerd, and social media strategist with a background in training, education, and educational publishing. A native Texan, Joleen has traveled extensively, worked in six countries, and holds an MA in Teaching English as a Second Language. She lives in Austin and constantly seeks out the best the city has to offer.

Business Marketing

Buffer’s four-day workweek experiment: Boost or bust?

(BUSINESS MARKETING) After trying out a four-day workweek last year, Buffer is moving forward with the format going into 2021, citing increase in productivity and work-life balance.

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Man working in office with headphones on, making use of flexible four-day workweek.

The typical five-day workweek is a thing of the past for Buffer, at least for now. The company has decided to implement a four-day workweek for the “foreseeable future.”

Last year, the company surveyed its employees to see how they are dealing with the ever-changing landscape of the pandemic and the anxiety and stress that came along with it. They soon learned employees didn’t always feel comfortable or like they could take time off.

Employees felt guilty for taking PTO while trying to meet deadlines. Juggling work and suddenly becoming a daycare worker and teacher for their children at the same time was stressful. So, Buffer looked for a solution to help give employees more time and flexibility to get adjusted to their new routines.

Four-Day Workweek Trials

In May, Buffer started the four-day workweek one-month trial to focus on teammates’ well-being. “This four-day workweek period is about well-being, mental health, and placing us as humans and our families first,” said Buffer CEO and co-founder Joel Gascoigne in a company blog post.

“It’s about being able to pick a good time to go and do the groceries, now that it’s a significantly larger task. It’s about parents having more time with kids now that they’re having to take on their education. This isn’t about us trying to get the same productivity in fewer days,” Gascoigne said.

Buffer’s one-month trial proved to be successful. Survey data from before and after the trial showed higher autonomy and lower stress levels. In addition, employee anecdotal stories showed an increase in worker happiness.

With positive results, Buffer turned the trial into a long-term pilot through the end of 2020. This time, the trial would focus on Buffer’s long-term success.

“In order to truly evaluate whether a four-day workweek can be a success long-term, we need to measure productivity as well as individual well-being,” wrote Director of People Courtney Seiter. “Teammate well-being was our end goal for May. Whether that continues, and equally importantly, whether it translates into customer and company results, will be an exciting hypothesis to test.”

Trial Results

Company Productivity
Buffer’s shorter workweek trials showed employees felt they had a better work-life balance without compromising work productivity. According to the company’s survey data, almost 34% of employees felt more productive, about 60% felt equally as productive, and only less than 7% of employees felt less productive.

However, just saying productivity is higher isn’t proof. To make sure the numbers added up, managers were asked about their team’s productivity. Engineering managers reported that a decrease in total coding days didn’t show a decrease in output. Instead, there was a significant output increase for product teams, and Infrastructure and Mobile saw their output double.

The Customer Advocacy team, however, did see a decline in output. Customer service is dependent on customer unpredictability so this makes sense. Still, the survey showed about 85% to 90% of employees felt as productive as they would have been in a five-day workweek. Customers just had to wait slightly longer to receive replies to their inquiries.

Employee Well-Being
With more time and control of their schedules, Buffer’s survey shows an increase in individual autonomy and decreased stress levels reported by employees. And, the general work happiness for the entire company has been consistent throughout 2020.

What’s in store for 2021?

Based on positive employee feedback and promising company results, Buffer decided it will continue the company-wide four-day workweek this year.

“The four-day work week resulted in sustained productivity levels and a better sense of work-life balance. These were the exact results we’d hoped to see, and they helped us challenge the notion that we need to work the typical ‘nine-to-five,’ five days a week,” wrote Team Engagement Manager Nicole Miller.

The four-day workweek will continue in 2021, but the company will also be implementing adjustments based on the pilot results.

For most teams, Fridays will be the default day off. For teams that aren’t project-based, their workweek will look slightly different. As an example, the Customer Advocacy team will follow a different schedule to avoid customer reply delays and ticket overflow. Each team member will still have a four-day workweek and need to meet their specific targets. They will just have a more flexible schedule.

Companies who follow this format understand that output expectations will be further defined by area and department level. Employees who aren’t meeting their performance objectives will have the option to choose a five-day workweek or might be asked to do so.

If needed, Fridays will also serve as an overflow workday to finish up a project. Of course, schedules will be evaluated quarterly to make sure productivity is continuing to thrive and employees are still satisfied.

But, Miller says Buffer is “establishing ambitious goals” that might “push the limits” of a four-day work week in 2021. With the world slowly starting to normalize, who knows when a four-day workweek might reach its conclusion.

“We aren’t sure that we’ll continue with the four-day workweeks forever, but for now, we’re going to stick with it as long as we are still able to hit our ambitious goals,” wrote Miller.

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Business Marketing

10 easy steps to get into Instagram marketing

(BUSINESS MARKETING) Want to up your social media marketing game? Start better with Instagram for your business using these easy tips to quickly get established.

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When Instagram first came on the scene, it was simply a place to share pictures of your cat or a pie that you just baked. While it still is a place for that kind of content, it has also grown into a platform where one can influence others and build an empire.

So, if you’re looking to step up your social media marketing game through use of Instagram, look no further than using these 10 steps from Neil Patel.

  1. Switch to a business profile: This is super easy and can be done in just a few clicks. Switching from a personal to a business profile gives a better look at your followers through Insights, allowing you to see analytics and impressions. It also adds a contact feature that takes a visitor right to an email draft to you – just like it would on your website. All this and it makes it possible to publish ads.
  2. Use free marketing tools: Because Facebook owns Instagram, they operate kind of similarly. As mentioned in #1, Insights allows for a deep dive into personalized analytics to see what kind of posts are clicking with your audience and which aren’t. That way, you know what kind of content to continue with and what to do away with.
  3. Post product teasers: There are a variety of ways to do this, including posting about flash sales or linking business platforms that sell your product to make it easier for your customer to shop. The trick here is to not be pushy, but instead be enticing and make the post convenient for your consumer.
  4. Create a sponsored ad: Like Facebook, you can post ads and include a specific budget of what you want to spend. You can showcase one ad or multiple with the carousel feature. You can also target the exact demographic you’re looking to hit.
  5. Instagram stories: These last 24 hours and don’t have to be as “fancy” as a regular post. Give followers a glimpse into your brand with behind-the-scenes shots, polls, fun questions, etc. Make them feel like they’re part of the experience and use this as a way to tell your brand’s story.
  6. Partner with influencers: Work out a deal with influencers who have a decent following. Send them one of your items in exchange for them posting a photo of the item and tagging your brand. This will reach their whole followership and build your credibility.
  7. Collect user-submitted photos: Share photos posted by customers loving on your brand or product. Either share them to your story, or use a regram app to repost customer photos to your feed. It’s basically free advertising for your product.
  8. Hashtags: Come up with an interactive hashtag solely for your brand. Think in terms of verbs (a la Nike’s “Just Do It”). It can be punny or practical, but something that people attribute to your brand and your brand only.
  9. Timing and over-posting: Look into the best times to post – this is when your users are most active. It will be helpful to use Insights to understand when your time to shine may be. According to SimplyMeasured, the worst days to post on Instagram are Wednesdays and Sundays, while Mondays and Thursdays are the best days to post. Also, don’t over post. It’s annoying and it’s always best to err on the side of quality over quantity.
  10. Track the right metrics: Insights do no good if you aren’t looking at the right data. You need to keep tabs on whether or not what you’re doing is increasing your follower growth as well as growth for your interaction. With research, use of Insights and a little trial and error, you’ll get yourself to where you need to be.

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Business Marketing

Unpopular opinion: Coworkers are not your ‘family’

(MARKETING) “I just want you to think of us as family,” they say. If this were true, I could fire my uncle for always bringing up “that” topic on Thanksgiving…

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family coworkers

The season 10 opener of “Undercover Boss” featured Walk-On’s Bistreaux & Bar. Brandon Landry, owner, went to the Lafayette location where he worked undercover with Jessica Comeaux, an assistant manager. Comeaux came across as a dedicated employee of the company, and she was given a well-deserved reward for her work. But I rolled my eyes as the show described the team as a “family.” I take offense at combining business and family, unless you’re really family. Why shouldn’t this work dynamic be used?

Employers don’t have loyalty to employees.

One of the biggest reasons work isn’t family is that loyalty doesn’t go both ways. Employers who act as though employees are family wouldn’t hesitate to fire someone if it came down to it. In most families, you support each other during tough times, but that wouldn’t be the case in a business. If you’ve ever thought that you can’t ask for a raise or vacation, you’ve probably bought into the theory that “work is a family.” No, work is a contract.

Would the roles be okay if the genders were reversed?

At Walks-Ons, Comeaux is referred to as “Mama Jess,” by “some of the girls.” I have to wonder how that would come across if Comeaux were a man being called “Daddy Jess” by younger team members? See any problem with that? What happens when the boss is a 30-year-old and the employee is senior? Using family terminology to describe work relationships is just wrong.

Families’ roles are complex.

You’ll spend over 2,000 hours with your co-workers every year. It’s human nature to want to belong. But when you think of your job like a family, you may bring dysfunction into the workplace.

What if you never had a mom, or if your dad was abusive? Professional relationships don’t need the added complexity of “family” norms. Seeing your boss as “mom” or “dad” completely skews the roles of boss/employee. When your mom asks you to do more, it’s hard to say no. If your “work mom or dad” wants you to stay late, it’s going to be hard to set boundaries when you buy into the bogus theory that work is family. Stop thinking of work this way.

Check your business culture to make sure that your team has healthy boundaries and teamwork. Having a great work culture doesn’t have to mean you think of your team as family. It means that you appreciate your team, let them have good work-life balance and understand professionalism.

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