Why Illinois Restaurants May Vanish From Apps Like Grubhub
Food delivery apps like Grubhub, DoorDash, and UberEats have been around for quite some time. The COVID-19 pandemic brought those apps to the forefront, It caused delivery service apps usage to increase by 25% in 2021, according to ADJUST. Some restaurant owners are not pleased about it.
If you used a food delivery app like Grubhub you would likely agree there is a bit of convenience. It's great for restaurants that may not ordinarily deliver. It also makes browsing multiple menus easier than going from website to website. The problem, though, is that these delivery service apps may be hurting businesses. It may not be intentional but it's become a problem for some restaurants.
Restaurants work hard to maintain their reputation. The quality of the food is essential, yes, but there's more to it. Customer service is also of utmost importance if they want to retain returning customers. With food delivery apps the restaurant owner has no idea who will pick up the food and deliver it to the customer. If the delivery portion of the experience is bad it may reflect on the business and not solely on an app like Grubhub. This is why things are about to change in Illinois in 2023.
In 2020, restaurants in California and North Carolina filed a class-action lawsuit against Grubhub citing damages caused by the company posting menus without permission from restaurants. The exact reason for the lawsuit?
Significant damage to their hard-earned reputations, loss of control over their customers’ dining experiences, loss of control over their online presence, and reduced consumer demand for their services.
In the report, Grubhub claimed there was no intent for this to happen and they were simply trying to help businesses. The food delivery service won't necessarily have to worry about it for much longer, at least in Illinois. Governor Pritzker has signed the Fair Food and Retail Delivery Act.
The law prohibits third-party delivery apps from posting menus, logos, or any other intellectual property of restaurants without their express written consent; if they do, restaurants can sue for damages or $5,000, whichever is greater.
The law will take into effect on January 1, 2023. You can read more food-related law changes here.
[h/t Eater Chicago]