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:
- W-2 staff cost about 30% more
- Increased top-line Revenue.
- May cut down on the cost of delivery.
- Caters to your customer’s wants and needs.
- Find new customers.
- 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.