4 ms·

> Now, the companies are competing to grab market share, and most restaurants still have the same restaurant kitchen, so we haven't seen those changes, but I th

> Now, the companies are competing to grab market share, and most restaurants still have the same restaurant kitchen, so we haven't seen those changes, but I think it's just a matter of time. I wouldn't be so sure of that. delivery is inherently less profitable for the restaurant. a single employee can serve many more dine-in and especially take-out customers in an hour than they can as a delivery driver. at the same time, you are throwing maintenance and insurance for a vehicle into the equation. you can push a lot of this cost onto the driver, but not all of it. I also doubt that the location savings are that substantial. you don't need to lease the prime real estate that everyone walks by, but you still need to be within a 15-20 minute drive of your customer base. any property within 20 minutes of a dense area tends to be expensive to rent. there are already a few take-out/delivery only places in my area. the only ones that seem to be doing well have pretty bad food for the price.

furyofantares 6y ago
> at the same time, you are throwing maintenance and insurance for a vehicle into the equation. We're comparing to the customer driving to the restaurant, right? So this was always a cost the customer was paying and it's just moved into the transaction
- mattcwilson 6y ago
  If by “cost” you mean car mileage, sure. But in a store pickup situation, there is no additional driver to pay, special packaging for transportation of the food, liability for safe transport of the food, transportation logistics operating costs, etc.
- leetcrew 6y ago
  right, but the fundamental problem is that customers aren't willing to pay the full cost of delivery. delivery places don't just compete with other delivery places on price; they also have to compete with takeout prices. people don't mentally add the cost of gas, vehicle depreciation, and their own time onto takeout prices. plus a pretty common "workflow" is for people to pickup food on their way home from work, which has a negligible cost for them even if they rigorously price it out.
  - gnicholas 6y ago
    > delivery places don't just compete with other delivery places on price; they also have to compete with takeout prices. Sure, but right now all of those takeout prices are from restaurants with retail locations. A ghost kitchen that offers delivery could be undercut by a ghost kitchen offering pickup, but in general they'll have a price advantage versus a retail restaurant with a more expensive location and more square footage. The calculus is especially favorable toward ghost kitchens during pandemic-induced lockdowns, when people aren't otherwise out and about. If I'm driving home from work and can easily stop by a restaurant for takeout, that doesn't cost me much time. But if I'm at home 24/7, then I factor in the time spent going to get food. That makes ghost kitchens with delivery somewhat more attractive.
    - romanoderoma 6y ago
      It's the exact opposite for me. On one side being home 24/7 gives me a lot more time to cook myself, on the other side going out to buy food finally makes sense, it's one of the few occasions I have now to go out and have a walk in the open.
  - itronitron 6y ago
    >> customers aren't willing to pay the full cost of delivery There is a different market for customers that are willing to pay the cost of delivery, they usually have more mouths to feed, and those mouths are pickier. If anyone is ever brave enough to actually test this I think they would be surprised, especially during COVID. Restaurant doesn't deliver? Provide an option to deliver for $20 and I am certain that you will get orders.
marcosdumay 6y ago
> any property within 20 minutes of a dense area tends to be expensive to rent. As a rule, if one just rents the place on the street behind the one where all the people go, one can cut the rent by 1/3 or 1/2. A kitchen only place can function underground or on a high floor, what takes most of the price out again.

furyofantares 6y ago

> at the same time, you are throwing maintenance and insurance for a vehicle into the equation. We're comparing to the customer driving to the restaurant, right? So this was always a cost the customer was paying and it's just moved into the transaction

mattcwilson 6y ago
If by “cost” you mean car mileage, sure. But in a store pickup situation, there is no additional driver to pay, special packaging for transportation of the food, liability for safe transport of the food, transportation logistics operating costs, etc.
leetcrew 6y ago
right, but the fundamental problem is that customers aren't willing to pay the full cost of delivery. delivery places don't just compete with other delivery places on price; they also have to compete with takeout prices. people don't mentally add the cost of gas, vehicle depreciation, and their own time onto takeout prices. plus a pretty common "workflow" is for people to pickup food on their way home from work, which has a negligible cost for them even if they rigorously price it out.
- gnicholas 6y ago
  > delivery places don't just compete with other delivery places on price; they also have to compete with takeout prices. Sure, but right now all of those takeout prices are from restaurants with retail locations. A ghost kitchen that offers delivery could be undercut by a ghost kitchen offering pickup, but in general they'll have a price advantage versus a retail restaurant with a more expensive location and more square footage. The calculus is especially favorable toward ghost kitchens during pandemic-induced lockdowns, when people aren't otherwise out and about. If I'm driving home from work and can easily stop by a restaurant for takeout, that doesn't cost me much time. But if I'm at home 24/7, then I factor in the time spent going to get food. That makes ghost kitchens with delivery somewhat more attractive.
  - romanoderoma 6y ago
    It's the exact opposite for me. On one side being home 24/7 gives me a lot more time to cook myself, on the other side going out to buy food finally makes sense, it's one of the few occasions I have now to go out and have a walk in the open.
- itronitron 6y ago
  >> customers aren't willing to pay the full cost of delivery There is a different market for customers that are willing to pay the cost of delivery, they usually have more mouths to feed, and those mouths are pickier. If anyone is ever brave enough to actually test this I think they would be surprised, especially during COVID. Restaurant doesn't deliver? Provide an option to deliver for $20 and I am certain that you will get orders.

marcosdumay 6y ago

> any property within 20 minutes of a dense area tends to be expensive to rent. As a rule, if one just rents the place on the street behind the one where all the people go, one can cut the rent by 1/3 or 1/2. A kitchen only place can function underground or on a high floor, what takes most of the price out again.