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I can't edit and add to my comment... so new post. Basically what I think we're dancing around, is that perhaps the current business of model of restaurants is
by kingaillas 6y ago
I can't edit and add to my comment... so new post.
Basically what I think we're dancing around, is that perhaps the current business of model of restaurants is busted and has to change, post covid. The old model is rent a large space for indoor dining, cook/serve the food, sell high margin alcoholic drinks ;), plan for a steady stream of events/holidays (valentine's day, mother's/father's day, etc), try to locate near other office workers for a steady lunch customer base, and so on.
Maybe that doesn't work as well post-covid due to work-from-home a large shift to ordering out. I mean rent alone has got to be eating restaurants alive, when they don't need as much space now.
As far as middlemen and delivery, restaurants themselves are middlemen if you look at meat/produce being the actual materials and me, the hungry customer, wanting the spend cash for a product - but now eating at home.
Perhaps the new restaurant future is the rent smaller work spaces, or team up with other restaurants and have a booth with shared/common space, and serve mostly with delivery in mind. There's a place like this in my local large city, with a dozen or so vendors that rotate a little bit, sharing a large common area. It was packed every time I went, in the before times... not sure how it is doing now (website says they are mostly doing delivery so I suppose it is still up and running).
In which case a restaurant factors in the delivery fee/cut as an expense. Basically juggle it so part of the fee comes from not having to pay as much rent, and perhaps this delivery need is part of the new business model. Folks can still come by in person to get out of the house and save a bit, but factor in the majority of customers will order delivery.
I don't actually work in this industry so I don't know what actual numbers look like, but I do listen to the Planet Money podcast and a recent episode was about a restaurant that had to close due to high rents! It ended with the former owners wanting to open a new restaurant, but only if they owned the building.