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PM forbids food delivery firms from ramping up prices


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My wifes nephew sells food and says the only way to make money selling through the food delivery companys is make the portions less and add an extra 20 baht per meal .

So his normal 50 baht meal is 70 baht and about 30% smaller which he says is the only way its worth doing otherwise they grab all his profit.

(See what i did there)

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This is one reason I refuse to use Foodpanda. There is NO SUCH THING as "free delivery". FP is gouging the restauranteur and leaving them making virtually zero profit. I wish the law stated that food

I thought that was the standard way of doing business here. regards worgeordie

<deleted> me!!!   A grown up actually said that, did their nose start to extend?   Thailand truly is a parallel universe where blatant lies are treated as the truth and the a

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Posted (edited)

Maybe this can be applied across the board not just food🤑  particularly when the vaccine is available in the private sector if that ever happens?

Edited by thailand49
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16 hours ago, Walker88 said:

The major food delivery services charge the restaurant 30% and, at least initially, pay the driver 60 baht per delivery. So if you order 1000 baht of food, the restaurant sees 700 baht, the delivery company 240 baht, and the driver 60 baht.

Food Panda drivers get around 20 baht per delivery.

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14 hours ago, Walker88 said:

For some restaurants, the delivery services are loss leaders.....introduce customers to the venue or make sure inventory doesn't go bad and get wasted. Asking for a 30% discount when dining-in is like saying "you don't ever need to actually make a profit".

 

Drivers for the Big Two services make about 30,000 baht per month....provided they survive the traffic.

Yeah, i was speaking with a GRAB delivery rider a few months ago and he was saying that on his best months he would earn between 35-40k a month working 7 days a week 

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Just now, Kaopad999 said:

Yeah, i was speaking with a GRAB delivery rider a few months ago and he was saying that on his best months he would earn between 35-40k a month working 7 days a week 

I think he was pulling your leg.

 

😂

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I know a friends son, who works for a pizza company, he has driven his M/C into the ground, on low wage now needs to buy a new M/C. I'm just trying to point out, these drivers also have to maintain there bikes, out of their low wage. Just saying. 

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Allowing prices to rise let’s businesses expand to deal with rising demand. Without this food delivery will run into shortages.

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13 minutes ago, brianthainess said:

I know a friends son, who works for a pizza company, he has driven his M/C into the ground, on low wage now needs to buy a new M/C. I'm just trying to point out, these drivers also have to maintain there bikes, out of their low wage. Just saying. 

Yes, & they have to pay for their internet & gasoline.

 

Unfortunately, their need to earn, makes some of them drive badly.

 

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The delivery companies clearly stipulate, that the price offered through their services (website etc.) has to be identical to what a restaurant is billing in-house or directly to the customer. 

So they don't crank up prices, they cream it off the top to start with. The delivery companies charge the restaurant 30% of the billed value; for a bill of, say, THB 1'500 that would be THB 450. For this, they run a website (content to be fed in by the participating restaurants), collect money electronically immediately from the buyer and credit the restaurant at a later stage and pay a biker a small fee for actually moving the food from A to B. 

In a competitive environment one could apply a flag fall fee of X, then a reasonable percentage of Y and a ceiling of Z. The flag fall is given with a minimum order value, the rest is utopia ...... 

But no, the gifted leadership now complains about non-existing price inflations by the delivery boys OR bashes on restaurants which have no influence on the take of the delivery companies. 

The only decision-making authority is the customer as the customer has the choice. He could place a take-away order directly, pick it up directly and avoid all this ....... 

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18 hours ago, worgeordie said:

I thought that was the standard way of doing business here.

regards worgeordie


In 2020 the goverment announced the exact same about face masks, but still they were sold at up to 1,000 Baht for a box with 50 pcs, which you can now buy for less than 50 Baht.

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18 hours ago, Pattaya Spotter said:

Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.


I have heard, that the drivers during Covid 19 have been making 30-40,000 Baht a month, so it´s not you but the restaurants, that are paying the main part of the drivers salary. Just look at the many shiny new motorbikes, which your food is being delivered on.

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I think the Big Fella should make them food delivery companies drop their charges to say 15% then it wont force the restaurants to put their prices up, 30% is screwing them down to the ground,

 

My daughter in England has 4 take away Pizza and Kebab shops and she uses a food delivery company who since last year have only charged 9% which I dont think is to bad, she has her own web site which people can order from

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18 hours ago, mark131v said:

 

<deleted> me!!!

 

A grown up actually said that, did their nose start to extend?

 

Thailand truly is a parallel universe where blatant lies are treated as the truth and the actual truth treated as lies... 

Of all the things that are so important during this current outbreak, Prayut had deemed this as a priority.

Words fail me

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35 minutes ago, ChipButty said:

Depends on what he's delivering

Yeah, he did mention that he was also delivering 'private' packages 

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Just now, Kaopad999 said:

Yeah, he did mention that he was also delivering 'private' packages 

Last year 2 got caught doing that, here in Phuket

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I find it hard to believe they are paying the driver 60 baht per delivery.  Our best friend has a restaurant and most of the orders I see coming in for foodpanda are 100 baht or less.  Foodpanda does take 30% of the order.  The restaurant also does not get the money right away.  I think they give the money to the restaurant once a month but not sure on that.

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19 hours ago, Pattaya Spotter said:

Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.

They charge restaurants 30% 

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Posted (edited)

I guess the prices are guaranteed to go up, then.....

Edited by Grusa
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19 hours ago, webfact said:

PM's office spokeswoman Rachada Thanadirek said that prime minister Prayuth Chan-ocha cares passionately about the people and has not been idle in putting into place measures for their benefit.

 

🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

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12 hours ago, Walker88 said:

Macs and KFC could do that, but non franchise venues cannot.

I really don't understand why they don't leverage their size to create their own service, start by Delivering Macs, then as you develop, deliver for everyone, that's a massive extra income stream for Maccs or KFC or Burger King HQ, or whomever leads the charge, just doing deliveries for others (and their own franchisees)

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16 hours ago, mtls2005 said:

Forbid" is certainly an interesting look for a prime minister.

 

Normally he "orders" people to do something, or not do something. Forbid, sounds slightly more imperial.

 

forbid
[fəˈbɪd]
 
VERB
  1. refuse to allow (something).
    "I can see why phones were forbidden"
    synonyms:
    prohibit · ban · outlaw · make illegal · veto · proscribe · disallow · preclude · exclude · rule out · bar · debar · block · stop · put a stop to · 
    • order (someone) not to do something.
      "I was forbidden from seeing him again" · 
      synonyms:
      prohibit · ban · outlaw · make illegal · veto · proscribe · disallow · preclude · exclude · rule out · bar · debar · block · stop · 
    • refuse entry to a place or area.
      "all vehicles are forbidden"
    • (of a circumstance or quality) make (something) impossible; prevent.
      "the cliffs forbid any easy turning movement"
    Does that answer your point?
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Posted (edited)
20 hours ago, Somtamnication said:

They charge my wife and I 37% (Panda and Grab). While I try to keep costs at or below 30%, we are barely making it,

So as a percentage of Revenue:
37 % distribution cost,
30 % CoGS;
then say: 
5 % Utilities
7 % repair and maintenance;
6% other costs
8 % rent
34 % salaries 
total cost: 37+30+60 = 127 % of  revenue

Your regular business should be happy to subsidise Grab et al. 
after all they take care of marketing cost.  
😉
(and charge the buyer for delivery, or don't they?)

Edited by KKr
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1 hour ago, faraday said:

Yes, & they have to pay for their internet & gasoline.

 

Unfortunately, their need to earn, makes some of them drive badly.

 

I thought the bad driving was in their DNA 

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12 hours ago, Walker88 said:

The market is still young, however. New entrants will cut into the 30% and drive it down so that restaurants can survive. Grab is now facing Bolt and others in transport; they will soon face competition in food delivery, and their golden days of gouging restaurants will end.


HungryNow seems to be doing well in Pattaya...I think?  Have no idea what their fee structure is, though.  

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