When Uber Eats unilaterally raised prices for all its partner restaurants, Rave Restaurant Group CEO Brandon Solano decided he would not tolerate it. Instead of accepting the price adjustment, he canceled the partnership between his brands, Pizza Inn and Pie Five, and the third-party delivery service.

"Uber did not negotiate with us in good faith," Solano said. "They came to us directly and said, 'You will pay this amount; this is a global increase, and we do not accept negotiations.' I will not do business that way."

In early March, Uber Eats raised marketplace fees across most of its pricing tiers to help cover rising operational costs. Its Lite tier fee increased from 15% to 20% per order. Pickup order fees across all tiers rose from 6% to 7%, along with other fee increases. These fees cover couriers completing orders, attracting new customers, offering delivery discounts for Uber One members, and transaction costs for payment processing and insurance.

Uber stated that partner restaurants were notified of the changes at least 30 days in advance and could choose to switch pricing plans or leave the platform.

"We updated marketplace fees for some U.S. restaurants on Uber Eats for the first time in about a decade," an Uber spokesperson wrote in an email. "This change reflects the higher costs required to operate a reliable delivery marketplace and helps ensure we can continue to support restaurants, couriers, and customers. Restaurants were notified in advance, and we will continue to comply with all local regulatory requirements."

Solano said the timing of the increase was terrible given the economic conditions many operators currently face—conditions that have led to frequent bankruptcies, thin margins, and rising costs.

"I think it is a very bad time for Uber to try to raise rates when so many restaurants are currently closing," Solano said.

By ending the company's relationship with Uber Eats, he said he "successfully negotiated the rate to zero." This move allowed Rave to avoid raising menu prices across its brands, which would ultimately affect customer behavior.

"I think our franchisees and customers deserve better treatment than demands from a player ranked second in market share," he said.

Solano claimed that under the new rates, restaurant operators could barely or not at all profit from Uber Eats delivery transactions. Paying up to 30% per transaction—more than the share suppliers and farmers receive for providing ingredients—was unreasonable. He added that franchisees supported the decision.

"Do we really think technology is more valuable than food? I do not think so," he said. Solano acknowledged that transaction volume might see some decline.

"We will lose some order volume because of this. But at the end of the day, these orders bring us almost no profit," he said.

While Solano said he is in talks with DoorDash for an exclusive agreement, that deal is not yet finalized. Pie Five and Pizza Inn have other channels to focus on besides third-party delivery, especially dine-in.

Rave Restaurant Group is already profitable, reporting its 23rd consecutive quarter of profitability in February, according to a financial report. Pizza Inn reported a 2.5% increase in comparable store sales for the second quarter of fiscal 2026, while Pie Five's comparable sales decreased by 1.5%.

In other order channels, Rave is "working hard to find every penny, and these channels typically have much higher profit margins than our experience with third-party delivery," he said, adding that Pizza Inn is improving food quality, service, and value to win back customers.

Pizza Inn's dine-in traffic is growing, driven mainly by value offers such as the "All You Can $8" package—a buffet of pizza, pasta, salad, and dessert priced at $8 on weekdays. Solano said direct orders placed through its website have also increased significantly.

"We must ensure these experiences are excellent," he said, "but do you want to talk about a convenient dine-in experience? Like you walk in, grab a plate, and start eating. That is what the Pizza Inn buffet offers."

Why third-party platforms should be cautious about raising prices

He added that there are many other ordering channels that also provide convenience for restaurants, such as drive-thru, which do not add much extra cost to restaurants or consumers.

"If delivery becomes too expensive, they will push people toward other options, some of which might be cooking at home or more convenient frozen meals," Solano said. "I do not think that is the direction we want to see."

Solano said third-party delivery services should be cautious about raising prices too quickly. There is significant competition in the third-party delivery business among Uber Eats, DoorDash, Grubhub, and local third-party players.

"These companies compete with each other, and they should compete for our business," Solano said. He added that as these businesses become more saturated and have more restaurant clients, they should negotiate more with restaurants rather than making uniform pricing decisions, because operators can switch between different aggregator platforms.

"Uber Eats, in particular, is damaging its relationship with the restaurant community, a relationship they will need in the future," he said.

Editor's note: This article has been updated with a statement from Uber Eats.