Moving isn’t easy so CAC can’t go to zero. The extra a restaurant pays in rent to be on the street with all the restaurants over being a few blocks away is a ma

Moving isn’t easy so CAC can’t go to zero. The extra a restaurant pays in rent to be on the street with all the restaurants over being a few blocks away is a marketing cost. That cost is where the ghost kitchen finds their competitiveness and the delivery company finds their margin. They won’t take over. Rents ability to change in the long term means that if ghost kitchens get too popular then restaurants will face less competition for rent and be able to drop prices. But I don’t see what time immemorial has to do with it. For a long time paying high rent to be on restaurant st was the most effective way for a restaurant to spend their marketing dollars. For a long time buying carriages was the most effective way to spend your transportation dollars.