Delivery Apps Might Just Destroy the Restaurant Biz

The rise of food delivery apps has transformed the restaurant industry—in the worst possible way and on a scale most people are probably unaware of, writes Amanda Mull in a deep dive into the issue at the Atlantic. Mull's piece traces the roots of the delivery boom back to early innovators like Collin Wallace, whose startup was bought by Grubhub in 2011. But what began as a way to make ordering food a little more convenient has morphed into a system behind a staggering stat: Nearly three-quarters of US restaurant meals are now eaten outside the restaurant, writes Mull, citing data from the National Restaurant Association.

Or consider this tangible number: One West Coast restaurateur showed Mull her books, which revealed that of the $1.7 million in gross receipts one restaurant pulled in, $400,000, or 23%, went to delivery companies. "Which is why I just laid off people," says Sharon Orr. Restaurants, once defined by hospitality and in-person experience, increasingly find themselves functioning as little more than takeout counters. The fanciest restaurants still rely on table service, but the vast majority no longer do. "You could shoot a cannon" through most restaurant dining rooms on any given Tuesday night, one industry analyst tells her.

The pandemic shifted this dynamic into overdrive, and Mull writes that delivery service was at the time a lifesaver for many restaurants. Now, it's killing them. Read the full story, which notes that restaurant food itself is changing—"this is part of the reason everything is a bowl now"—the better to survive being boxed up and schlepped across town.