Baton Rouge residents may have to start using a different delivery app than Waitr to get their favorite foods at home.
Following the laying off of numerous employees on June 27, the delivery app announced it will be changing how it interacts with businesses. The new terms introduce a “performance-based rate structure,” taking a higher commission from restaurants that have a smaller amount of sales and vice versa.
Restaurants with $20,000+ sales through Waitr will be charged 15% commission per transaction, and the fee amount rises from there. The amount caps at 25% commission for restaurants making $1,000 or below a month, according to The Acadiana Advocate.
The Acadiana Advocate also reports that the new agreement released on the Fourth of July, and the new terms prohibit restaurants from up-charging menu items on the app to cover the new costs. Restaurants will also have to cover the credit card fees – previously covered by customers – and are prohibited from using any of Waitr’s photos.
Kalurah Street Grill, Rocco’s New Orleans Style Poboys and Café and Rotolo’s Pizzeria have all confirmed they will no longer use Waitr as their delivery system if the new terms are set into action. City Pork, City Slice, Rouj Creole, and Ruffino’s are also considering no longer using the app, according to Greater Baton Rouge Business Reports.
Waitr is receiving criticism for the new terms, saying the agreement ultimately hurts small businesses. Other delivery apps like UberEats and DoorDash may see more business as a result.