00:02Well, look, we absolutely understand that delivery drivers deserve fair pay and we certainly
00:08support that.
00:09However, restaurants and cafes cannot afford to bear the brunt of that increase.
00:14According to Ibisworld, they're operating on less than 3% margin and we still have the
00:19credit and debit card surcharge ban coming and the banning of junior rates in 2026.
00:25We just can't take anything else.
00:27So in practice, how are you expecting this is going to work from Monday?
00:32Are delivery companies going to foot the bill or will the cut out of each meal that the delivery
00:39companies take increase?
00:42Oh, look, we hope that they don't go to restaurants and cafes around the country and ask for more
00:48percentage.
00:49Every time that the menu prices of restaurants and cafes go up, the delivery companies make
00:55more money because they charge a percent of the menu price.
00:58So we know that consumers are the ones that are going to ultimately end up having to pay
01:04for these minimum rates.
01:06And so to what extent do you expect that meal prices will rise for consumers?
01:13Well, look, we can't estimate for the delivery companies what they'll need to increase the
01:18customer facing service and delivery charges.
01:21But ultimately, in order to make up the difference between some of the reported hourly rates as low as
01:27$14 or $15 up to the over $31 rates that are being reported, that means that consumers will ultimately
01:35end up paying more service fees.
01:37Because if the delivery companies expect restaurants and cafes to foot the bill, they have another
01:43thing coming.
01:44So how do the agreements work at the moment between the delivery companies and restaurants?
01:48What cut do they generally take?
01:52Say, for example, there was an order just to make it simple of $100.
01:57How much do the restaurants get and how much do the delivery companies get?
02:03Well, look, there's reports of commissions paid to the delivery companies up to 30%.
02:10Each business is going to be under its own contract.
02:13So they're going to have their own deal with the delivery companies.
02:15But look, if they're already taking up to 30% of the menu prices from these small businesses
02:22to offer those delivery services, they just cannot increase them any higher.
02:27We would be looking for them to be decreased, not increased.
02:29To what extent has the arrival of the delivery companies transformed the amount that restaurants
02:34get for what they produce?
02:38Oh, look, the profit margins in restaurants and cafes has plummeted over the past decades,
02:45with many businesses reporting that they used to enjoy profit margins in that 10% to 15% range.
02:51Now, most will tell you it's usually between 3% and 5% with some of the standouts being between
02:58that 5% and 10%.
02:59So many cost increases, both wages, cost of goods, expenses and delivery charges have cost restaurants profit margin.
03:08And this will be the straw that breaks the camel's back.
03:12And you can't just turn, restaurants can't just turn their backs on the delivery companies because
03:16they've got so much of the market?
03:20Yeah, look, almost everyone I know has a delivery app or a rideshare app on their phone.
03:25It's very popular.
03:26It's consumers that are driving this trend.
03:29And ultimately, much like the RBA said after the surcharge ban, consumers will ultimately be the ones that pay.
03:36And you said before, Wes, that if the delivery companies think they can take a bigger cut of what the
03:41restaurants are making on the food at the moment,
03:46they've got another thing coming.
03:48What can you actually do, really?
03:51Well, look, we'll advocate as hard as we can if, you know, it is no longer commercially viable for restaurants
03:58and cafes around the country to offer delivery.
04:01Then we'll help them to find other avenues in order to have wonderful guest experiences for their customers.
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