Who has done it well – Pizza –

  • Why – Food type.
  • Consumer acceptance

Off-Premise Market Source: Technomic 2018 Next-Level Off-Premise

  • 47% Drive-Thru
  • 35% Takeout
  • 18% Delivery

Players and Market share: (January 2020)

  • Grubhub 30%
  • Uber Eats 20%
  • DoorDash 37%
  • Postmates 10%

Industry trends – Foodservice habits are shifting

  • Order size: $33.68 check average
  • High frequency: 2.5 average monthly consumer transactions
  • I am increasingly replacing carryout with delivery. 30% somewhat or completely agree 18-34. Overall is 21% – Source: Technomic 2018 Next-Level Off-Premise

Other things to consider:

  • Gig economy and regulation
  • Ghost kitchens

Cost to you?

  • Restaurants pay the services 15% to 30% fees for each order customers place through their platform. 
  • Negotiate the fee. They are battling now for market share.

Cost to do it yourself:

  • Staffing
  • Drivers
  • Cars
  • W-2 staff cost about 30% more

Pros:

  • Increased top-line Revenue.
  • May cut down on the cost of delivery.
  • Caters to your customer’s wants and needs.
  • Find new customers.

Cons

  • Customers are also less likely to ask for menu items that carry higher margins — including soda and alcoholic drinks.
  • Cannibalization – Restaurants risk cannibalizing their more profitable dine-in or take-out sales.
  • Cold food
  • Delivery services work with several restaurants at a time –
  • Changing loyalties – Customer loyalty shifts away from the restaurant to the delivery service in third-party partnerships.


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