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As far as I am aware, every food delivery services charges a delivery fee, which is some % of total cost of the order. As restaurants operate on thin margins,

As far as I am aware, every food delivery services charges a delivery fee, which is some % of total cost of the order. As restaurants operate on thin margins, food revenue cannot provide enough money to invest in technology (you may be surprised at the number of fast food companies that have invested in CX through mobile ordering). Rather fees, like delivery fees, are used to invest in R&D.

prepend 4y ago
First, my neighborhood pizza place offers free delivery. And it’s really good pizza. Second, the price if delivery is worked into their overall prices since drivers has costs. The stupidity of Dominos charging a delivery fee is that it’s just extra on top of their prices so extra mental labor to work out true price instead of advertised price. Third, dominos used to charge $0 for delivery even though margins were the same back then.
- balls187 4y ago
  > First, my neighborhood pizza place offers free delivery. And it’s really good pizza. Do they have a mobile app to order from, shows real time order status, coupons, and rewards? And, as you said in your second point, the delivery isn't free. The cost is built in to the pizza. So if you dine in, or pick up, you're paying a premium to subsidize the cost of delivery. > Extra mental labor to work out true price instead of advertised price. The final price is shown before checking out. This is no different than purchasing from Amazon, booking a flight on Expedia, or getting a hotel room on Booking.com. > Third, dominos used to charge $0 for delivery even though margins were the same back then. Yes, back before domino's had to compete against other national fast food chains' technology strategies.
- listenallyall 4y ago
  How do you know margins are the same? That statement is extremely unlikely. Food prices have surged, yet Domino's Pizza still runs some of the same specials... $5.99 medium pizzas, tons of coupons, etc. Secondly, the market for delivery drivers has gotten enormously more competitive. Used to be pizza and Chinese food were the only places likely to deliver. Now GrubHub, Uber, Door dash, etc. It's just harder to find people willing to drive (oh, gas prices are higher too,maybe you've noticed) your food to you.

prepend 4y ago

First, my neighborhood pizza place offers free delivery. And it’s really good pizza. Second, the price if delivery is worked into their overall prices since drivers has costs. The stupidity of Dominos charging a delivery fee is that it’s just extra on top of their prices so extra mental labor to work out true price instead of advertised price. Third, dominos used to charge $0 for delivery even though margins were the same back then.

balls187 4y ago
> First, my neighborhood pizza place offers free delivery. And it’s really good pizza. Do they have a mobile app to order from, shows real time order status, coupons, and rewards? And, as you said in your second point, the delivery isn't free. The cost is built in to the pizza. So if you dine in, or pick up, you're paying a premium to subsidize the cost of delivery. > Extra mental labor to work out true price instead of advertised price. The final price is shown before checking out. This is no different than purchasing from Amazon, booking a flight on Expedia, or getting a hotel room on Booking.com. > Third, dominos used to charge $0 for delivery even though margins were the same back then. Yes, back before domino's had to compete against other national fast food chains' technology strategies.
listenallyall 4y ago
How do you know margins are the same? That statement is extremely unlikely. Food prices have surged, yet Domino's Pizza still runs some of the same specials... $5.99 medium pizzas, tons of coupons, etc. Secondly, the market for delivery drivers has gotten enormously more competitive. Used to be pizza and Chinese food were the only places likely to deliver. Now GrubHub, Uber, Door dash, etc. It's just harder to find people willing to drive (oh, gas prices are higher too,maybe you've noticed) your food to you.