Business Insider: More People Opting for Self-Pickup to Avoid Pricey Delivery Fees

High delivery fees are causing a decline in orders from Uber Eats and DoorDash, with more customers opting to collect their own food, Business Insider reported. Erik Frederick, CEO of Pizzeria Uno, the neighborhood pizzeria franchise, told Insider that the number of delivery orders appears to be "dropping off, on at least third-party delivery."

"I think a lot of people are tightening their belts and saying, 'you know what, I'm just gonna go pick it up,'" he said. "We're seeing a pivot of people who were doing the Uber Eats and the Grubhubs and the DoorDash actually come into the restaurants and just pick up their pizza because it's much more economical."

Third-party delivery services often impose fees that significantly increase costs, particularly on smaller orders. Some restaurants incentivize customers to order through their own app or website by offering lower prices because they gain access to valuable customer data. This allows them to promote their loyalty programs, send marketing materials and encourage repeat orders. Ordering directly also benefits restaurants by providing higher profit margins.

In most cases, it is cheaper for customers to simply pick up their order themselves. For example, an individual-size deep dish cheese and tomato pizza on Pizzeria Uno's website costs $12.49 for collection from its restaurant in Revere, Massachusetts, plus $0.87 in tax. However, to get the same order delivered used Pizzeria Uno’s website, which outsources it to DoorDash, the total is $22.98, including a $7.75 delivery fee. Meanwhile, to order on Grubhub will cost the same customer $23.39, with the menu price for the pizza itself being $2 higher than on Pizzeria Uno's site.

Data from the US Bureau of Labor Statistics shows that the cost of dining out, including restaurants, fast-food chains, workplace canteens and food trucks, has surged by 8.6% in the past year. In contrast, the overall Consumer Price Index, which factors in food, apparel, energy costs and rent, saw an increase of 4.9% during the same period.

"We're probably seeing a little more bargain-hunting," Frederick added. "We've gone after a lot of people from polished casual who are looking to not quite spend near as much money. You could feed a family of four on pizza for under $50 ... and that's with drinks and everything."