By Rick Hynum
When Uber Eats announced it was increasing its marketplace fees across most of its tiers earlier this month, one pizza chain leader decided enough was enough.
Rave Restaurant Group, which owns Pizza Inn and Pie Five, has cut ties with the third-party aggregator after the latter raised its custom delivery marketplace fee by 3%, up to a maximum of 30%. In other words, brands that previously negotiated a lower commission rate will now see it go up by 3%, although Uber Eats has pledged that the total commission will not exceed the industry-standard cap of 30%.
Instead of passing the additional costs on to customers, Rave Restaurant Group has opted to walk away, reflecting growing dissatisfaction with third-party aggregators among both independent and franchise pizzeria owners.
We asked Brandon Solano, president and CEO of Rave Restaurant Group, to share his thoughts on third-party fees and how Rave’s pizza brands will move forward without Uber Eats.
PMQ: How long did Pizza Inn’s partnership with Uber Eats last, and what were your expectations when you entered into the partnership?
Brandon Solano: We partnered with Uber Eats as part of our broader off-premises strategy and have worked with the platform intentionally over the past two years. Like many restaurant brands, we saw value in giving guests another ordering option and creating additional sales opportunities for franchisees as delivery demand continued to grow.
Our expectation was never just to add another channel for the sake of volume. The expectation was that the relationship had to create convenience for the customer while also making sense at the store level for operators. That’s how we evaluate any platform relationship. If it supports the guest experience and creates healthy economics for franchisees, it can be a useful part of the business. If it does not, then we have to reevaluate it.
PMQ: So this was the tipping point? Why did you decide to walk away now?
Solano: This ultimately came down to store-level economics. When the latest fee increase was put in front of us, we took a hard look at what those orders were actually contributing to the business, and the math simply stopped making sense for our system.
We are already operating in an environment where customers are watching what they spend very closely. We cannot just continue raising prices every time a cost goes up, and we’re not going to keep absorbing additional pressure if it leaves little to no profit for franchisees. At some point, you have to make a disciplined decision about whether a partnership is still serving the system the way it should. For us, this was that point.
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PMQ: There’s no question that third-party fees cut into profits for both independent and franchise operators alike. From your perspective, just how bad is it?
Solano: It is significant, and I think it’s more meaningful than many people outside the restaurant business realize. In a tight margin business, a few percentage points can have a real impact on whether an order is helping the business or simply creating activity without much bottom-line benefit.
When you layer in commissions, promotional pressure and the operational realities that come with fulfilling delivery orders, those economics can get tight very quickly. For franchisees, that matters. They are managing food costs, labor, occupancy, utilities, and every other pressure that comes with running a restaurant. If a delivery channel keeps taking a bigger share of the transaction, it becomes harder to justify over time.
That does not mean third-party delivery has no place. Customers clearly value convenience, and restaurants have to respond to that. But the model only works long-term if the economics are fair enough for operators to participate healthily.
PMQ: Are we about to see a shift away from third-party delivery platforms in general?
Solano: I do not think the industry is going to walk away from third-party delivery altogether. Customer demand for convenience is real, and that is not going anywhere.
What I do think you’ll continue to see is a more disciplined approach from restaurant brands. Operators are paying closer attention to what these relationships actually deliver in terms of profitability, customer reach and long-term value. The conversation is becoming less about simply being on every platform and more about making sure each partnership truly earns its place in the business.
For some brands, that may mean staying with multiple providers. For others, it may mean narrowing the field and being more selective. In either case, I think the industry is moving toward a more thoughtful and more financially grounded view of third-party delivery than we saw a few years ago.
PMQ: What’s the next step for Pizza Inn? Are you exploring other partnerships?
Solano: Our focus is on growing Pizza Inn in ways that are sustainable for the long term. That includes continuing to support our franchisees, strengthening the guest experience, and staying focused on the parts of the business where we are seeing real momentum.
You can already see that in the brand. We’re opening new stores, seeing strong interest from franchise prospects, and continuing to invest in modernization and reinvestment across the system. That is where our attention is going to stay. We want to build on the momentum we already have and keep moving Pizza Inn forward in a way that is smart, practical and built for the long run.
As for partnerships, we will continue to evaluate opportunities that make sense for our operators and our customers. We are open to relationships that are competitive, sensible and supportive of healthy franchisee economics. The goal is not growth at any cost. The goal is profitable growth, a strong guest experience and a model that positions Pizza Inn for continued expansion.
Rick Hynum is PMQ’s editor in chief.
