Seamless and the Online-Takeout Trend Are Making Restaurants Queasy

Photo Credit: Bloomberg TechnologyFor customers, there is little not to like about Seamless. You pull up a website or an app, find a restaurant nearby, and pick out a few dishes to have delivered. Your credit card gets charged and you don’t have to speak a single word into the phone.

Pedro Muñoz sees things different. The founder and owner of Luz, a trendy Latin American restaurant serving lobster guacamole, pupusas, and Peruvian-style chicken in Brooklyn, decided to cut ties with Seamless starting on Aug. 10. He’s been including a letter in all delivery orders explaining the decision and directing customers to the restaurant’s website for online orders. For Luz, Muñoz says, the extra business brought in by inclusion in online-ordering services wasn’t worth the high fees and other expensive strings that came with it. “It’s awesome if you’re a customer. It’s great,” he says. “But in all aspects it’s killing the restaurants. It’s a model that cannot be sustained.” Read More

Posted on August 13, 2013 and filed under The Chipotle Effect.