The Fine Print of Grubhub’s $100 Million Relief Program for Ailing Restaurants

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Grubhub made news this week by announcing it would defer collection of up to $100 million in commissions as its way of helping the restaurant industry in a time of crisis. But, as always, the fine print is key:

, among the terms and conditions of the agreement, is a stipulation that restaurants agree to keep Grubhub as a delivery service for one year after signing onto the program.

It’s unclear how long the deferral will last, though a term sheet sent to restaurant owners states that it “will end on a date to be determined by GH in its sole discretion, although GH currently anticipates that such date will be no later than March 29, 2020.” Once that time is up, restaurants will have four weeks to repay the deferred commissions, after a two-week grace period in which they make the regular commission payments of between 15 and 30 percent.

Grubhub makes clear the deferral program is entirely optional — indeed, restaurants must apply to it — but the outbreak has placed many restaurants in a

 

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