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Well empirically, most restaurants (at least where i live) did not deliver at all or beyond the immediate vicinity or required an insane minimum order size to d
by sfifs 6y ago
Well empirically, most restaurants (at least where i live) did not deliver at all or beyond the immediate vicinity or required an insane minimum order size to deliver before these apps came. Now i can get what i want affordably from the place I like without going to the restaurant. I also don't take up valuable table space so restaurants can serve in person traffic too - lunch and dinner traffic is as busy as ever and hasn't come down. What's happened (again where i live) is market has expanded.
Gross margins on restaurants run typically higher than 70% to 80%. Your employee cost is usually fixed, so by even giving off some chunk of the gross margin to these middle men, they're growing revenue and profit.
It's not a good idea to assume restaurant owners who sign ip to these apps are idiots. If their revenue and profit was not expanding, they wouldn't be still on the platforms
- plantain 6y ago>Well empirically, most restaurants (at least where i live) did not deliver at all or beyond the immediate vicinity or required an insane minimum order size to deliver before these apps came. Now i can get what i want affordably from the place I like without going to the restaurant. The missing piece here that makes the delivery work, is the VC funding. The apps are presently a net win for consumer and restaurant is because some SV VC fund is subsidizing the delivery. Maybe they'll be able to organize a mass delivery network with enough efficiency that it actually develops economies of scale and becomes self-sufficient. Or maybe they'll burn out like Groupon.