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Costly rates and fees prompt restaurants and food chains to increase prices on delivery apps

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Restaurants are marking up their food by up to $10 an item to compensate for losses from using third-party delivery services.

Services such as UberEats and Menulog charge a commission of up to 30 per cent per order, according to a report in The Age, forcing both small restaurants and large multinational corporations to increase their prices.

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This commission is also on top of delivery and service fees, meaning consumers are often paying big bucks just for convenience.

National chain Zeus Street Greek charges $22 for its Spartan Bowl in store, however if you were to order it on UberEats or Menulog it would cost you $10 more.

A lamb pita wrap bought in-store would cost $15.50 compared with $21 if ordered through a delivery app.

Large fast food chains such as KFC and McDonald’s have also upped their prices to recoup costs.

Restaurants are marking up food by up to $10 an item to compensate for losses from using third-party delivery services. Credit: AP

An original recipe burger from KFC costs $1.50 more if ordered through UberEats and Menulog, while a six-pack of chicken nuggets from Macca’s costs $8.55 on UberEats and $7.50 in store.

Zeus Street Greek chief marketing officer Ramon Castillo told The Age the convenience offered by delivery apps “comes at a cost.”

“(The price difference is) 100 per cent in place to offset the fees charged by third-party delivery companies,” he said.

“The ability for our franchisees to absorb these fees in addition to our other operational costs is simply not sustainable.”

Woolworths was also found to have increased its prices on groceries available to order through UberEats.

The supermarket chain does, however, charge the same prices on its own delivery app Milkrun, which it recently purchased.

Coles has kept the prices of its products in store and on delivery services the same.

An Uber Eats spokesperson told 7NEWS.com.au that it was up to Business owners to decide “which items ... to list and how they price those items.”

“Restaurants choose to partner with Uber Eats in different ways and we’re proud to provide this flexibility and control to thousands of Australian small businesses nationwide,” the spokesperson said.

DoorDash and Menulog were contacted for comment.

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