Social Security for Delivery Workers May Raise Food Prices

Cancún, Quintana Roo — Proposed labor reforms aimed at providing social security benefits for food delivery workers in Mexico may lead to increased costs for end consumers, according to industry leaders. Julio Villarreal Zapata, head of the restaurant sector in Cancún and Quintana Roo, warned that the financial burden of these changes could ultimately be passed on to customers.

Potential Cost Increases for Consumers

Villarreal Zapata explained that food delivery platforms are likely to raise their commission fees in response to the new social security requirements, prompting restaurants to increase menu prices.

"The only outcome will be that the platforms will raise their commissions, and restaurants will then raise their prices. Ultimately, this cost will be transferred to the person ordering the service," he said.

Trial Period Underway

The National Chamber of the Restaurant and Seasoned Food Industry (CANIRAC) participated in discussions and working groups on the reform, securing a trial period for delivery platforms to implement the mandatory social security measures. Villarreal Zapata emphasized that the full effects of the policy will only be clear once this testing phase concludes.

"This could disrupt the platforms' flexibility in setting schedules and affect those who rely on delivery work as a supplementary income," he noted.

Economic Risks for Restaurants and Platforms

The restaurant leader also raised concerns that higher prices could reduce consumer demand, leading to financial losses for both delivery platforms and restaurants. He highlighted the varying dependence on delivery services across the industry, with some restaurants deriving as little as 10% of their sales from apps, while others rely on them for up to 80% of revenue.

"Some restaurants operate almost entirely through this model, preparing food and maintaining staff solely for deliveries," he added.

The reform, intended to improve labor protections for delivery workers, now faces scrutiny over its broader economic implications. Stakeholders await further analysis once the trial period ends.