8 ms·

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 pla

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.

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.