Giuseppe Marchesini, a restaurant owner in Little Italy, worries about how the alcohol delivery partnership between the LCBO and Uber Eats will affect his bottom line.
He said that was unfair given that his business and others have not fully recovered from the COVID-19 pandemic.
“It’s another competitor and it’s a big competitor,” Marchesini told CP24 on Saturday night.
“We think it’s not fair. They can be more careful in supporting small businesses. We are still fighting. Even if the guests support us and we are full, we will need a little more attention on us.”
Marchesini isn’t the only restaurant owner feeling disappointed by the news. Ryan Mallow of the Canadian Federation of Independent Business (CFIB) said many of their members are expressing frustration with the partnership.
He said it would put businesses at a disadvantage.
“We’ve already contacted some of our members in the hospitality industry and it’s a bit of a blow,” Mallow said.
“(The hospitality industry) is still in a very difficult position. More than half have not yet returned to their normal income levels.”
The partnership will allow Ontarians of legal drinking age to order beer, wine and spirits from the LCBO through the Uber Eats app and have it delivered to their door.
The delivery platform said in a statement to CTV News Toronto on Friday that customers will have to verify they are 19 or older while ordering through the app and upon delivery before receiving the alcohol. Uber Eats added that sobriety will also be verified upon delivery.
The LCBO said the partnership is not part of a formal agreement with Uber Eats, as AGCO-approved delivery service providers have been allowed to deliver alcoholic beverages for some time.
“The LCBO, as part of a time-limited pilot program, is in talks with on-demand delivery providers to improve the customer experience, including the use of the LCBO logo and product selection guidelines,” a Crown corporation spokesperson said in a statement in Friday.
This isn’t the first time the LCBO has partnered with a delivery app. Back in 2020, she announced that her products would be available for delivery through SkipTheDishes. However, the partnership ended days later after receiving backlash from restaurant owners and Mayor John Tory.
Mallow said the partnership with Uber Eats will discourage customers from ordering alcoholic beverages from restaurants, with the LCBO offering the same products at a lower price.
He noted that while restaurants and bars are only allowed to sell alcohol through delivery apps when food is included in the order, the rule does not apply to the LCBO.
“It’s kind of different rules for the big player in the game and different rules for the smaller ones. And that, again, is a major source of frustration for small businesses,” Mallow said.
“All they really want is to be able to compete. When you get a different set of rules, especially for the bigger guys, it makes it very difficult to do that.”
Uber Eats said customers ordering LCBO alcohol will have to pay a $5.49 delivery fee.
Mallow said the same set of rules should apply to everyone. If the LCBO can sell alcohol through delivery apps without purchasing food, businesses should be allowed to do so as well.
“I think two things (need to happen). One, on the government side, let’s not introduce rules that give unfair advantages to competition. Let’s let business compete. Let him serve his customers,” he said.
“And then for all of us on the customer side, really what they need is for users to keep coming back.” We’ve seen this wonderful outpouring of local support for small businesses during the pandemic. We want to make sure we keep it going.”
– with files from Mark Liverman and Abby O’Brien of CTV News Toronto
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