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If we are trying to be charitable in our interpretations of someone's argument, I think they were suggesting that each item ordered would have the same price an

If we are trying to be charitable in our interpretations of someone's argument, I think they were suggesting that each item ordered would have the same price and that the order total minus delivery cost would have the same price, not that the total for the entire order with the delivery-specific costs and delivery service would be the same as the in-store pickup.

freddie_mercury 6y ago
Ordering for delivery often requires extra packaging and extra handling. Items that can all be thrown together in a single plate may need to be put into separate containers, which takes extra time in the kitchen. Probably they are also missing upsell opportunities on higher-margin goods (how many people are ordering alcohol, desserts, or just drinks in general for delivery?) I honestly don't know how much that all adds up to -- and weighed against it are some cost savings, certainly. But I've never really got the impression that the restaurant business is a high-margin business where they make hand over fist, so my default position isn't "oh, another greedy cash grab for those fat cat restaurateurs" but more "eh, probably they've run the numbers and this extra $1/order is what they need to stay afloat when doing delivery".
- eitland 6y ago
  > Ordering for delivery often requires extra packaging and extra handling. Items that can all be thrown together in a single plate may need to be put into separate containers, which takes extra time in the kitchen. Probably they are also missing upsell opportunities on higher-margin goods (how many people are ordering alcohol, desserts, or just drinks in general for delivery?) Good points, on the other hand I would think there's way less work for each order with takeaway: - less waiting tables - less cleaning of floors, tables and plates ?
  - JAlexoid 6y ago
    People cost more than packaging. So it's not exactly an easy calculation. Often delivery can be optimized much better, than in person services(including takeaway). Making 10 packs of fries takes as much manpower, as 1 pack. If you can batch it well, then you can optimize costs. But most people in restaurant business are crap at optimization, that's why McD is this big...

freddie_mercury 6y ago

Ordering for delivery often requires extra packaging and extra handling. Items that can all be thrown together in a single plate may need to be put into separate containers, which takes extra time in the kitchen. Probably they are also missing upsell opportunities on higher-margin goods (how many people are ordering alcohol, desserts, or just drinks in general for delivery?) I honestly don't know how much that all adds up to -- and weighed against it are some cost savings, certainly. But I've never really got the impression that the restaurant business is a high-margin business where they make hand over fist, so my default position isn't "oh, another greedy cash grab for those fat cat restaurateurs" but more "eh, probably they've run the numbers and this extra $1/order is what they need to stay afloat when doing delivery".

eitland 6y ago
> Ordering for delivery often requires extra packaging and extra handling. Items that can all be thrown together in a single plate may need to be put into separate containers, which takes extra time in the kitchen. Probably they are also missing upsell opportunities on higher-margin goods (how many people are ordering alcohol, desserts, or just drinks in general for delivery?) Good points, on the other hand I would think there's way less work for each order with takeaway: - less waiting tables - less cleaning of floors, tables and plates ?
- JAlexoid 6y ago
  People cost more than packaging. So it's not exactly an easy calculation. Often delivery can be optimized much better, than in person services(including takeaway). Making 10 packs of fries takes as much manpower, as 1 pack. If you can batch it well, then you can optimize costs. But most people in restaurant business are crap at optimization, that's why McD is this big...