SEATTLE — The owner of a Seattle pizzeria said he believes the new $5 fee added to delivery app orders is slicing into his bottom line and slowing down business.
"Just in the third-party delivery apps? Fifty percent down.” said Jeffrey Stern, owner of Il Villaggio, an Italian food eatery in Magnolia.
It's the latest wrinkle from a Seattle city ordinance intended to improve gig workers' pay. As KING 5 reported, otherwise usual customers, disabled residents and even delivery drivers themselves have been vocal about their frustration with the new fee.
At Il Villaggio this Sunday around 5:00 p.m., the restaurant had gotten only three delivery orders all day, according to General Manager James Lambard.
"Normally, I have like 13 to 20 orders in a night," Stern said. "We rely heavily on the delivery companies to deliver our food."
For every two delivery app orders they used to get at Il Villaggio Magnolia, they are now getting just one, said Stern.
"It used to be a lot busier," said Lambard.
A Seattle city ordinance designed to further support app-based delivery workers went into effect in mid January. Most food delivery apps responded by imposing a "regulatory response fee," as Doordash calls it, for example.
"We’re losing tips, we’re losing, you know, wages, because there’s less hours to cover because it’s not as busy as it was," said Lambard.
Staff at the pizzeria are now searching for a solution.
"Everyone's scrambling to figure out how to how to come out the other side," said Stern.
Stern has even been seeking the advice from his marketing partners.
"And they suggested that I put a popup on my website, 'Save up to 30% by ordering directly through us,'" said Stern.
Regardless, Stern knows of the challenges that await him, as consumer habits can be difficult to influence.
“I do appreciate and value the partnership with our third-party delivery apps, Uber, Doordash, Grubhub, and others," he said. "But I don't see any other way to, you know, to help educate the consumer about what we're doing."
Now, the heat is on to find the right ingredients for success in this new normal.
"Just like that, eight minutes 'til perfection," said Lambard as he put a pizza in the oven. "Pizza, pasta, sandwiches, calzones-- we make it all.”
Stern said there is a lot at stake.
"Eating is community, right? And we want Seattle to have a better community," said Stern.
Representatives for the apps say the fee is to cover new operating costs they claim they're now subjected to with the new ordinance.
KING 5 has reached out to the Seattle City Council for comment, but we have not yet received one.