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Rave Restaurant Group, the parent company of Pizza Inn and Pie Five, has ended its partnership with Uber Eats due to rising fees that executives say left them with minimal profits. The decision came after Uber Eats increased its marketplace fees in early March, with rates for its Lite tier rising from 15% to 20% per order.
Brandon Solano, CEO of Rave Restaurant Group, stated that the fee hikes were imposed without negotiation, forcing the company to pay up to 30% per transaction. Solano emphasized that these costs were higher than what vendors and farmers receive, and he questioned the value of technology over food. "Do we really think technology is more valuable than food?" Solano said, according to Restaurant Dive.
By ending the partnership, Rave avoided raising menu prices, which could have deterred customers. Solano described the exit as "successfully negotiating the rates down to zero." Although he acknowledged the potential loss of volume, he noted that it was volume that generated almost no profit. Franchisees supported the decision, and Solano is in talks for an exclusive deal with DoorDash, though it is not finalized.
The move comes at a challenging time for restaurants facing rising costs and tight margins. Solano criticized Uber Eats for raising rates amid ongoing restaurant closures. He warned that third-party delivery providers should be cautious about price hikes, as operators can switch between platforms like Uber Eats, DoorDash, and Grubhub.
Rave Restaurant Group reported its 23rd consecutive quarter of profitability in February, with Pizza Inn's comparable store sales rising 2.5% in fiscal Q2 2026. The company is focusing on enhancing its dine-in experience and exploring other ordering channels to maintain customer satisfaction. Solano highlighted the importance of maintaining strong relationships with the restaurant community, stating that Uber Eats might regret damaging these ties.