LAFAYETTE, La. - After laying off an undisclosed number of employees on June 27, Waitr announced a new "performance-based rate structure" for its partner restaurants. That could mean smaller profit margins - or even losses - for the restaurants that agree to the new terms, according to our media partners at The Advocate.
In the new model Waitr will take a higher commission for restaurants that have a smaller amount of sales and a lower commission for those that have a larger volume.
"It's bad," said Zee Baloch, who owns Hot Food Express. "They're killing the small people like me and other mom-and-pop shops. I think they're really taking advantage of us.
Waitr sent KATC the following statement on the new structure:
To stand out in the competitive food delivery landscape, Waitr has adopted a performance based rate model where the more our restaurant partners deliver, the lower their rate will be. Our partners will discover this is a far more attractive option than those offered by our competitors. Waitr constantly strives to be the most valuable partner to our restaurants and this structure is reflective of the quality and service we provide.
