Online delivery platforms are proving to be the biggest threat facing the food service sector, according the president of the Greek Federation of Restaurants and Related Professions, Giorgos Kavvathas.
Kavvathas warned that the commissions charged per order—when the platform provides its own delivery service—can reach as high as 25% to 30%. This, he says, is placing a tremendous burden on businesses already struggling to stay afloat.
Rising Costs Despite a Tourism Boom
Although Greek tourism has broken record after record in recent years, average consumer spending in restaurants has dropped significantly. Citing official data from the Greek Statistical Authority (ELSTAT), Kavvathas revealed that average consumption has fallen by 20% over the past three years, while operating costs in the food service sector have risen by 42% during the same period.
This sharp increase in expenses is driven by soaring energy prices as well as rising wage and non-wage labor costs.
Rent and “Under-the-Table” Payments
One of the most pressing challenges, however, is rent. Many landlords are now demanding part of the rent in cash—so-called “black money”—even though 70% to 80% of all restaurant revenue is now processed electronically. This practice places restaurant owners in a difficult, often legally risky position.
A Changing Landscape in Food Service
Kavvathas also noted that the very nature of the food service industry is evolving. One clear example is the growing importance of coffee, now a major component of both sit-down and takeaway operations. In central Athens, restaurants and cafés are seeing relatively steady business, largely due to the city’s transformation into a year-round tourist destination.
Digital Platforms: A Long-Term Threat
But not all areas are benefiting equally. Restaurants in neighborhoods outside the city center are underperforming. Kavvathas underscored the looming risk posed by online food delivery platforms, which he says are not only taking a large cut of sales but also collecting valuable customer data and mapping consumer habits across neighborhoods.
This data-gathering, he warned, could eventually be used to bypass local businesses altogether—either by favoring certain establishments or by launching competing services using the very customer base built by those same businesses.
