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other restaurants refuse to stop using the platform But there is a useful feedback loop here. 1. Courageous Restaurant bans GrubHub, Doordash et al. Delivery-
by masonic 6y ago
other restaurants refuse to stop using the platform
But there is a useful feedback loop here.
1. Courageous Restaurant bans GrubHub, Doordash et al. Delivery-insistent demand shifts to Competitors 1-4, meaning they get substantially more of these revenue-neutral (or worse) delivery orders.
2. Competitor 1 gets sick of this is and likewise bans GrubHub, Doordash et al. Delivery-insistent demand shifts to Competitors 2-4, meaning they get an even higher percentage of their orders being these revenue-neutral (or worse) delivery orders.
By now, both benefit by word of mouth regarding ordering and traffic becoming more streamlined by the absence of the delivery service-specific retail point of sale system foibles, less traffic at entry and pick-up, and consistent quality. Also, some drivers abandon the services to do direct delivery as restaurant employees, at least during peak hours, and the saved 35% can be split between restaurant and employee.
3. Competitor 2 gets sick of this is and likewise bans GrubHub, Doordash et al. Delivery-insistent demand shifts to Competitors 3-4, meaning they get an even higher yet percentage of their orders being these revenue-neutral (or worse) delivery orders.
4. Competitors 3-4 are now drowning in low-profit delivery orders and the traffic impact (foot and vehicle) alienates what's left of first-hand customers. Every negative delivery experience costs both the delivery service and the restaurant another customer. One abandons delivery services, the other folds altogether.