Campusfood's 75 Cent Service Fee Annoys College Students, Restaurant Owners
UPDATE: Consumer Victory! Campusfood's "Service Fees" Disappear
I live in the dysfunctional, pothole-riddled college town of Albany, NY. When I want to order takeout food with a minimum of human interaction, I use the Web site Campusfood. I've used them since 2005, and was happy with them...until last week.
See, all is not well with the Campusfood business model, and they've made some changes that have irked restaurant owners and customers alike.
I hadn't visited the site in a while before reader Stephen sent in a tip about the current situation. Campusfood has added two new features to their pricing. First, "loyalty cash" - a $1 credit when you order, applicable only to orders from that same restaurant placed within seven days. Great, if you eat a lot of takeout from the same place.
The other, more controversial addition is the 75 cent "service fee" charged by Campusfood on all orders. What's the problem? For starters, it's not obvious to customers who is charging the fee. At left is a screencap of part of the order page of one of my favorite takeout places, Mild Wally's (try the California broccoli pizza). The delivery fee is charged by the restaurant—the "service fee" is not.
Until now, the business model of Campusfood has been to take a cut of the restaurant's sales through the site. In return, the restaurant gets exposure to new customers, and an easy-to-use online ordering interface. Apparently, the company is still taking a cut, in addition to the 75 cent fee.
Freschott Pizza in Johnson CIty, NY, posted a notice on the pizzeria Web site, explaining why they are no longer using Campusfood. (As the writer mentions, Campusfood is owned by DotMenu, which also runs AllMenus.com.) The note reads, in part:
This was not part of our deal with them. Most people wouldn't even notice the fee, so in their words, "what's the problem then if they don't even know they are paying it?"
We won't do business like that and hope that customers who see this will call allmenus.com / campusfoods.com, and express their feelings about dealing with this type of underhanded billing practice. They will tell you that in return, they give you a $ 1 coupon for a loyalty program. That should be up to the customer if they want to participate and not just billed a service fee.
We felt that this was not a good business practice and don't want to be associated with it and would encourage any would be internet orderers to not patronize allmenus.com / campusfoods.com.
If the conversation recounted by Freschott's is true, "because the stupid college kids won't notice it" is not a valid reason to charge a fee. Come on, Campusfood.
DotMenu
Due to the greed of allmenus [Freschott Pizza]
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Comments:
I work for a hospitality services company. We provide room service to limited service hotels. We do charge what is called a "packaging fee"- some goes to the restaurant to pay for things like packaging, gas, etc. The other part of it (sometimes) goes to us so we can, you know, make a profit.
So, I don't see a problem with that.
What I DO have a problem with, is the fact that it's unclear that you have to pay it and why. They should be more upfront with their charges.
@Porcelina: Exactly. I can tell you that the neither the businesses who are on campusfood were not notified, nor were the customers. It just appeared one day.
While I was living on campus at a University and not living in my own Apartment and going to community college as I am now, I tried CampusFood once.
Maybe they are better setup in other areas of the country, but in DFW, the service was abysmal. All of the menus and restaurant listings were out of date, the delivery charges were ~3 dollars at a minimum, and there was not a very wide selection of restaurants to choose from.
I also tried calling Customer Service at one point, with a question about my form of payment, and their call center didn't appear to be staffed, but was rather a voice mail. My call wasn't returned.
Granted, all of this was over a year ago now, so things may have changed, but... I was not impressed at the time.
And having worked in a resturant that partnered with a (home) delivery service... well, you're best of choosing an item that either doesn't require heating or will retain heat well, because the drivers often have extremely busy routes, and food was regularly left sitting for long periods of time. We would remake it after a while, but it would still take them some time to pick up the remake. We got so many complaints about the food being bad once it got to the customers (or all shaken, etc) that we stopped using the service.
@Porcelina: How does the fee make sense if campus food is already taking a cut of the food sales?
The business is already paying them for the service. This 75 cent fee makes zero sense.
Well, if I want to get takeout from the same place 4 times in the span of 3 weeks (or less, given the nature of the "credit") this actually does come out to be nothing - more than 4 and it's actually a benefit to me (barely). As a college student/graduate I know that I did have places I frequented...frequently, but I wouldn't be down with that.
Plus I can always just call in once I know what's on the menu (as pointed out in other comments)
@Porcelina: They already get a cut. A 75 cent fee is basically just an excuse to get yet more money.
First off, I can't say that I see the problem with the way the cost breakdown is displayed. Am I missing something? Because I see the $0.75 Service Charge quite clearly. And why is it important for customers to know who is charging the $0.75? Why are they compelled to break down the cost for the customer?
I'm not defending charging random fees, but besides that, what is the issue here?
@Tuuurd_Ferguson: I actually like it here, much as I complain about it. I have a minor obsession with Bombers mini tacos.
Meh. After a few bad experiences in areas unrelated to restaurants, I usually like to avoid these sorts of brokerage services, regardless of what they provide. I understand their purpose, but when they start getting involved with the transaction, or worse, taking a cut from the consumer, they've outlived their usefulness.
@TheDayIsMine: hehe...or go down to the dorm lobby and look at the STACKS of menus around. One has to ask, how many trees died so that the chinese deliveryman can leave a stack the 10 times he comes an hour?
Or...I dunno, keep a menu every time you get take out...
@Tuuurd_Ferguson: Having gone to school in Troy, I would have to second you on Bomber's Burrito Bar. Not much to look at, but the food and atmosphere is fantastic.
@Nate128: I like it for complicated orders and to have documentation, since I don't have a fax machine.
@legwork: I'm not exactly sure how hearsay is a great "quotation" , this strikes me less as journalism than as griping. Many businesses are being forced to raise prices, few offer any compensation for said price changes. At least Campusfood is giving the customers something of value in exchange.
Hey, Albany, NY is not just a pot-holed-filled college town. It's my state's capital. It's the home of three-men-in-a-room (as in how laws get made). :-(
And we here in NYC have our own quantity of potholes. (Although today the NYC DOT came by and scraped my block's asphalt and tomorrow they are coming back to pave it - should be as smooth as a baby's bottom - until Con Ed decides they have to fix a pipe).
And we have lots of colleges too.
Ok, back on-topic: as others have said, collect your own supply of menus and call the joints directly. And use the aggregators' sites to look at the menus of places you don't have a menu for.
The reason I use Campusfood so much is because of Food Friendzy. I get money off my orders and it's generally much easier to order online than to do it any other way.
I'm not seeing the 75 cent service charge yet for University of Illinois. Maybe they're just testing it to see how students respond in a particular area?
@Corporate_guy: "This 75 cent fee makes zero sense. "
Really? Makes sense to me, they want more money.
@sponica: where does it say that? I see a quote that says that the restaurants didn't agree to it in their initial work with the website, but where does it say that they were not notified when it happened?
@Nate128: At the place I work, we don't accept credit cards (it's expensive for us when most orders are below $6.00) so it's a way for people to use theirs without us having to pay the fees. It works out cheaper for us because we have a $15 minimum on deliveries.
@jodles: It's difficult because a lot of people do not know whether or not the delivery charge (in the above case, $1.75) equates to a tip. I still tip a few dollars when this happens, but my roommate does not, because he is already paying at least $1-2 delivery charge + $0.75 fee.
Our solution? We stopped ordering through campusfood.
@nakedscience: Damn straight! We may be broke (and sometimes stoned), but it doesn't mean we're dumb. ;)
@Tuuurd_Ferguson: Agreed on Bombers, glad to hear it's still going strong (SUNY A alum, '98).
Mild Wally's wings and Bomber's huuuuge borritos are two of the few things I miss about Albany.
I lived on State St, right off Lark, and ate Bomber's all the time.
/ahhh nostalgia
@wcnghj: Exactly. I happened to place an order through Campus Food for the first time in months a few hours ago and saw the service fee under the CC logos. I (wrongly) assumed that it was a credit card processing fee, not a processing fee in general.
I'll still use Campus Food for a variety of reasons, but this is pretty sleazy.
@Nate128: It's really rare for someone who speaks English to pick up the phone. I don't mean that in a discriminatory way, it's just that I live in a really diverse area and most of the people working food service know about as much English as I do of their language. Campus food removes that language barrier and gives a hard copy of the order, which is really helpful.
Additionally, a lot of businesses listed on Campus Food don't process the deliveries themselves, but have a third party called Eats on Wheels take care of the payment and delivery.
You could argue that it's easier just to eat out or go pick up food, but I'm a car-less female living in a pretty awful area. it's just not smart to leave the house after dark.




















Bomber's Burrito Bar. When I was in Albany attending law school, we used to go there religiously. I miss that place. I agree that Albany is quite the dysfunctional, pot-hole ridden college town. Its amazing how many colleges are in the area, now that i think about it.