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I spoke to the my local pizza shop in NYC. He said between grubhub, uberRush, yelp and now slice, they are eating his pizza profit margins. He said he has to
by adamqureshi 9y ago
I spoke to the my local pizza shop in NYC. He said between grubhub, uberRush, yelp and now slice, they are eating his pizza profit margins. He said he has to deal with 3-4 software / hardware POS products for EACH service. They are sucking him dry. He can't make money BUT needs them to bring the business. Slice takes a 20% "slice" per order / of his business. Flour costs going up, he makes his own mozzerella. UberRush takes 33%. I don't know about grubhub / yelp % but its not good for him. His pizza is authentic neopolitina with homemade ingredients. You Actually taste the marinara sauce and fresh mozzerella. Dominos goal is to "squeeze" out and maximize profits using the cheapest possible ingredients they find! Then tell you its good!
- pbhjpbhj 9y ago>UberRush takes 33%. // Man, that is terrible. This is a major problem with capitalism, the optimisation doesn't work when it gets corrupted with marketing - in theory these frontends would compete until they were making practically nothing above their costs, in practice the one(s) with the most capital behind them (or best marketing department) will win and leech the money away from the producers and to the people who commissioned a clever app. It all seems pretty evil to me.
- deleted 9y ago[deleted]
- greenleafjacob 9y agoDelivery is a cost.
- ShabbosGoy 9y agoWhich will inevitably lead him to use poorer quality ingredients in order to survive. 3-4 POS is ridiculous for a small business. Why hasn’t this been solved yet?
- helipad 9y agoLater on ProductHunt: PizzaCo unifies all your pizza POS services!
- adamqureshi 9y agoHe said he gets called from india about some app / software that offers a dashboard to connect uberRush, slice, yelp, grubhub guess what? they take a fee on top of the fees from each POS / Software provider he is using. Its a "Layer Cake" fee. Like that movie. Fee on top of fee. Each morning he wakes up to further confusion when what he REALLY wants todo is make damn good pizza. He also said no one comes to eat in his spot EVERYONE orders out or take out using one of those apps above. He can't figure out all these different apps / services and has to hire someone todo it. Each time he tries to call one of these service providers, he can't get through to an actual human.
- jgalt212 9y agolove "Layer Cake". Sienna Miller at the peak of her powers.
- adamqureshi 9y agoDamn she was HOT in that movie. First time i saw her.
- thunfischbrot 9y agoIs he wondering what would happen if he ad never gotten onboard of any of those services? With such extreme cuts they take it sound like a shop with his unique selling point (neapolitan pizza, home made cheese) may be able to survive fine with less business but more profit per order.
- 9y ago
- Aco- 9y agojust curious what the name of his shop is? I'm always looking for good neopolitan pizza in this town.
- jacobwal 9y agoNot OP but Kesté is great. This is their site: http://kestepizzeria.com/en/home/ http://kestepizzeria.com/en/home/ Not to be confused with the Slice site, which is linked on Google Maps (https://www.kestepizzavinonewyork.com/ https://www.kestepizzavinonewyork.com/)
- matte_black 9y agoSame here, I will visit when I'm in NYC soon.
- adamqureshi 9y agotry lombardies in Manhattan, frannies in brooklyn. You want the very next level stuff? then you gotta go old school Lucali in carol cardens ( Brooklyn) he makes his own Burrata ( its liquid mozzerlla) oh lets not forget Roberta's in Bushwick ( JUST WOW)
- analogmemory 9y ago> He said he has to deal with 3-4 software / hardware POS products for EACH service I see this in some small shops. Their order counter is crammed with an iPads for each delivery service usually (4-6). Just to run ONE APP. It's ridiculous with what they have to put up with.
- Regardsyjc 9y agoIs there no service that provides one platform to manage all of them?
- eropple 9y agoThey want a cut, too.
- matte_black 9y agoI'm curious why he simply hasn't raised prices for orders through those platforms?
- enraged_camel 9y agoCustomers tend to be insanely price sensitive when it comes to low-end food such as pizza. So you can’t just raise prices because there is a certain limit to what people will be willing to pay before they decide to get pizza from one of the five other pizzarias on that street.
- JumpCrisscross 9y ago> Customers tend to be insanely price sensitive when it comes to low-end food such as pizza Then he’s in the wrong market or marketing his product wrong. Lots of cities put a premium on well-made pizza over cheap, “I’m drunk” pizza.
- enraged_camel 9y agoHmm yes let’s tell someone they are in the wrong market and are doing things wrong when we know literally nothing about their situation. That is not supremely arrogant at all.
- matte_black 9y agoI asked a pizza shop owner and they said everytime they’ve raised prices in the past revenue still went up.
- staticautomatic 9y agoIf he can't raise prices then he's in a de facto war of attrition.
- JONBRWN 9y agoSometimes I get upset that my favorite pizza spots in NYC are cash only and non-delivery but after reading this I’m sure the quality wouldn’t be the same if they switched.
- simplify 9y ago20-33 percent? That's crazy! I often encounter MAVN for restaurants in Austin. Looking them up, they $50 a month and $0.25 an order, which is way more reasonable. http://www.whatismavn.com http://www.whatismavn.com
- greenhatman 9y agoYou would think that competition between the tech companies would drive down prices for the shops.
- thisisit 9y agoSharing percentages are interesting. 33% seems just too high. That is why I wonder, if these food delivery apps are actually going to be a boon or bane for small mom and pop shops. Sure, they bring in customers but if it comes at the cost of reducing margins it is not good. Many of the smaller shops might end up going out of business - either because of reducing margins or because they can't find customers later - all their customers might actually expect them to provide service through these apps.
- UmmmActually 9y agoUmm actually, Slice take $1.95 per order. Says so right here: https://slicelife.com/pages/about-restaurants https://slicelife.com/pages/about-restaurants