The downsides of online restaurant ordering services

08/8/2013 | Bloomberg Businessweek

Online ordering services such as Seamless and GrubHub, which recently merged, offer a convenient solution for hungry consumers who want takeout. But some restaurant owners are not happy with the business model. Pedro Muñoz, who owns the Luz restaurant in Brooklyn, has decided to part ways with Seamless because of what he describes as high fees and slow payments. "I'd rather have a positive-cash-flow business with less volume than more volume with less earnings," he said.

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