3 ms·
Definitely not. But the problem is not that delivery realistically may cost $10-15 to pay for itself, it's that it's coming from the restaurant's margins and be
by coffeefirst 6y ago
Definitely not. But the problem is not that delivery realistically may cost $10-15 to pay for itself, it's that it's coming from the restaurant's margins and being hidden from the customer.
If the fees were real, the restaurant wouldn't need to care about pickup vs delivery, but the apps would lose some business because $15 is a good reason to do pickup.
- scarface74 6y agoWhose fault is it that restaurants aren’t pricing their services correctly?
- matthewdgreen 6y agoThe market’s.
- scarface74 6y agoHow is “the market’s” fault that an individual restaurant won’t price its services correctly? Unlike VC funded startups, they can’t keep losing money and pawn off their business to the public.
- matthewdgreen 6y agoIt’s a ruthlessly competitive business with single-digit margins. A restaurant that prices its services higher often becomes an ex-restaurant.
- scarface74 6y agoAnd if the restaurant doesn’t make enough money to pay its bills, it also becomes an ex-restaurant. The answer in a capitalist market is that restaurants will raise their prices to stay in business. As prices go up, people who don’t want to spend money in restaurants will find alternatives, you will have fewer restaurants and they will have a sustainable business model.