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At least around here: 1) Pizza is made on demand, quickly, from a small number of relatively non-perishable, cheap ingredients. You won't throw away a signifi
by Lazare 8y ago
At least around here:
1) Pizza is made on demand, quickly, from a small number of relatively non-perishable, cheap ingredients. You won't throw away a significant dollar value of raw materials. Also, pizza is popular, and your delivery drivers can stay busy. Pizza is so suitable for delivery that it's the ur-example.
2) Indian does have long lead times (the sauce cannot be made on demand), but the core food item is rice (which can be made in advance in bulk, and is also very cheap), and sauce, but the way the restaurant works is they make up a small number of sauce bases, cook up some meat, and then combine when the order is made. You don't necessarily know how much butter chicken will be ordered in a night, but you can cook batches during the night to adjust to demand.
3) Thai, around here, is always run out of an existing successful Thai restaurant, so they can piggy-back off the volume of the restaurant. It also tends to be a bit pricier, probably to reflect the higher margins. It also tends to centre around stir-fry, which again is cooked mostly on demand from a small-ish number of prepared ingredients.
4) Sushi...not popular around here (sushi is, but there is ZERO delivery options), but sandwiches, mexican, and turkish kebabs are. Again, you can get a bunch of cheap bread, tortillas, or pitas, a small number of mostly cheap, mostly non-perishable, mostly interchangable ingredients, and churn out chicken quesadillas, beef burritos, etc. Leftover bread is a small cost, and if you're careful you can minimise loss of meat, as you prepare more batches over the night.
5) Fish and chips (very popular around here), made from frozen ingredients and a VERY small selection of fresh ones, deep friend on demand.
See a pattern? A lot of "combine cheap starch with some fresh vegetables and/or meat that can be prepared quickly, ideally from frozen", where in many cases on-demand labour (putting the sandwich together, putting toppings on the pizza) will be a major chunk of your inputs, and ingredients will be minimal. In all cases you're looking at cuisines where it's relatively popular, the ingredients are relatively cheap, and critically you have a lot of interchangeability, a small number of ingredients, and low preparation times, etc. The fish and chip shop doesn't care if they sell 80 scoops of chips or 40, they've got tons spare in the deep freezer, and they're being cooked on demand; no wastage. Their main concern is just selling enough of anything to cover the cost of the oil in the deep fryer.
What will NOT work is something like a steak, roasts, ribs, fancy fish; stuff that has expensive ingredients and (especially) long lead times. You can't just cook up 40 plates of ribs on spec to see if you'll sell any tonight. (Well, not and stay in business for long.)
And if we look at the screenshot of Munchery's menu, item 1 is Corn Husk Roasted Salmon, item 2 is Honey Glazed Pork, item 3 is a side, item 4 is Roasted Chicken. These are the exact sorts of thing that will wreck your economics. No doubt they were popular; people are sick of pizza, indian, thai, mexican, etc as delivery options, especially at $11 a plate! But as the joke goes, if you lose money on every sale, you can't really make it up in volume. :)
Edit: Munchery tried to work around this by closing orders early, I think at 2pm, but 1) that's going to lose you some volume and 2) that's still not enough lead time.
> why are all pizza, Indian, Thai, Sushi etc. places in my city doing this
They're doing something very different.
- x0x0 8y agoCounterpoint (maybe?). For munchery, because meals are expected to be delivered cold, you have all day to cook.
- ricardobeat 8y ago> They're doing something very different. I don't buy this explanation. I can easily get roasted chicken, honey glazed pork, salmon, bbq ribs and a ton of other 'complex' dishes delivered with no fuss and for similar prices. Pizza, thai etc are popular because, well, people enjoy the food. There is nothing radically different about doing other cuisines, except messing up logistics or not meeting consumer demand...
- 80mph 8y agoMunchery provided nutritional and caloric info for all their dishes. Their portion sizes were decent, and the food was tasty. If you're counting calories and hate to cook, it was not a bad option.
- adventured 8y agoThese VC subsidized delivery businesses are all built to artificially scale rather than built to necessity, with almost comically predictable results. Webvan showed us how that works in practice 20 years ago and most of these latest companies are still repeating its mistakes. Then whoops the cash is gone and it turns out they never actually had a real business at all (they were merely net delivering money to customers, a truly extraordinary business model). The winners are going to be giants like Amazon that can absorb zero or negative real margins and can play a very long game until vehicle improvements (automation + electric) cuts into the delivery cost (and or they'll just find a way to bundle in other products/services to produce a broader profit).
- beaconstudios 8y agobasically the model is operate at a huge loss subsidised by investors until you can monopolise, then start vertically integrating and increasing prices. It's like if an Indian takeaway took a $MM loan to buy out all the other Indian takeaways in the area and then doubled the prices everywhere. The "tech" angle is just putting a happy face on monopolisation and price gouging.