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Our restaurants are failing. Why should food delivery apps thrive?

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241–250 of 290 posts

Re: Our restaurants are failing. Why should food delivery apps thrive?

#241
This doesn't even need a moralistic judgment: if the application owners don't change their practices, most restaurants are going to go under and then they'll lose revenue anyway.

So this is not only abuse of the restaurants, it's economical self-injury. Possibly self-destructive entirely.

Re: Our restaurants are failing. Why should food delivery apps thrive?

#242
post #225

Earlier quoted context omitted.

If their supply chains are decimated, they won't receive new equipment for additional manufacturing.

But they may be able to hire additional shifts or work overtime on existing production lines. Not every plant is run at a constant 24x7 three shift schedule. There are plenty of businesses that keep some slack in their manufacturing to respond to changes in demand as part of their corporate strategy, especially if they think there's an opportunity to gain market share.

What percent is that? Also dont look just at manufacturing, but things like transport and raw inputs.

Re: Our restaurants are failing. Why should food delivery apps thrive?

#243
At work we use Foodsby, and it's been difficult watching their offerings drop week over week. I think they have solved some of the major inefficiencies in the Grubhub/Doordash models [0], and I hope they make it.

[0] Foodsby delivers to company offices, not individuals. They coordinate orders with the restaurants, so that they aren't delivering single meals, and the restaurants can put a cap on the number of orders so they're not overwhelmed. The restaurant does the delivery so they control that cost (no hidden charges to them)

Re: Our restaurants are failing. Why should food delivery apps thrive?

#244
post #31

They thrive because people are lazy - both restaurant and their customers. Restaurants can make a concerted effort to ask regular clients to order from their own websites/apps but rarely do even when they can make an extra 10-15% after giving the customers 10% off. Customers are lazy because inspite of all the talk of supporting local, they are too hooked on click-click-click and ordered. The delivery apps have hundr…

I'm amazed that Chipotle hasn't packaged it's online ordering app and licensed it to other restaurants. I've never used such a streamlined, polished, and convenient way to make an order for pickup or delivery.

Doesn't the Chipotle app just use DoorDash?

Re: Our restaurants are failing. Why should food delivery apps thrive?

#245
post #37

Apps are doing well because they are solving a real problem — translating restaurants’ abysmal web sites, PDF menus, and awful online ordering experiences to apps that “just work”. If restaurants put any effort at all into fixing those things, there would not be such a strong demand for apps. Obviously this is different for different restaurants, and the skill set needed to run a restaurant is vastly different from r…

This sounds plausible, but it's basically wrong.

As an example, most people buy from amazon even though other retailers have very good websites, without inline advertisements and many times with lower prices.

another interesting example is tow truck services.

Re: Our restaurants are failing. Why should food delivery apps thrive?

#246
post #38

Earlier quoted context omitted.

Foodora was extremely popular here in Toronto, you’d see the bike delivery people all over the place and they signed up tons of restaurants but they just shut down citing the margins simply not making sense for the business. It didn’t help that a month before shutting down a group of workers unionized in Ontario, and further threw a wrench in a terribly low margin business and now none of them have a job and the enti…

> It didn’t help that a month before shutting down a group of workers unionized in Ontario, and further threw a wrench in a terribly low margin business and now none of them have a job and the entire city is stuck using Uber I don't think unionizing is ever a problem. I you do moralistic acceptable business practices. If your business is only profitable by paying below acceptable salary, push side costs onto employee…

Wake me up when that fantasy world becomes reality. In the mean time I’d rather not have to give Uber money.

Re: Our restaurants are failing. Why should food delivery apps thrive?

#247
post #223

Earlier quoted context omitted.

I know an EE in the toilet paper manufacturing. The production rate wouldn't change in the time frame you want it to because it is impossible. You'd have to bring in new machines, set them up on the line (the rest of the line has to stop), and trouble shoot any issues - this reduces production in the short term. For any temporary price increase it just isn't going to happen. So, raising the price on TP does nothing t…

That's only true if all the plants run all their lines 24x7. If you have some plants that are not at capacity, you can hire additional shifts to produce more, run on weekends, etc. Then you have additional labor costs, overtime, materials costs, etc. to recoup. The manufacturing plant I once worked for had spare capacity for the better part of a decade, so it's not some completely unusual thing and was in fact part o…

Right, but that doesn't mean the price has to increase. If they are profitable and handle all their fixed costs running a single shift, then the second shift should be more profitable at the same price. (Assuming the machines can handle it, etc.)

Re: Our restaurants are failing. Why should food delivery apps thrive?

#248
post #151

Our city has some local restaurant driven “drop points” for getting lots of restaurant prepared meals at a margin better for restaurants. Please see if your city has something similar as an alternative to grubhub, etc

Sounds interesting, good examples of this? Curious, if it's available in London (UK)

In London these dark/cloud kitchens are becoming more & more common.

You might have already been ordering from them & not realised - they used to be marked as “Editions” on Deliveroo:

https://foodscene.deliveroo.co.uk/promotions/deliveroo-editi...

Re: Our restaurants are failing. Why should food delivery apps thrive?

#249
post #245
post #37

Apps are doing well because they are solving a real problem — translating restaurants’ abysmal web sites, PDF menus, and awful online ordering experiences to apps that “just work”. If restaurants put any effort at all into fixing those things, there would not be such a strong demand for apps. Obviously this is different for different restaurants, and the skill set needed to run a restaurant is vastly different from r…

This sounds plausible, but it's basically wrong. As an example, most people buy from amazon even though other retailers have very good websites, without inline advertisements and many times with lower prices. another interesting example is tow truck services.

I buy from Amazon instead of other retailers because Amazon has almost-always free shipping for Prime members, a consistent (and fast) website experience I know how to use, and great customer service.

Some retailers have good websites (most don't), but I've always found issues like: slow shipping, having to create an account, spam from the retailer, poor customer service, etc.

Re: Our restaurants are failing. Why should food delivery apps thrive?

#250
post #54

> why should I'm not a huge fan of moralistic takes on business. If you're selling something dangerous then that's wrong, but it's very easy to be blinkered from a high position. If people want to buy food in a certain way I can't really blame them - arguably the same with Uber and taxis, Uber has disrupted an industry which was fairly uncompetitive and politically charged (Their prevalence indicates the customers ap…

From a business perspective, it seems the biggest issue is that this price gouging is short term thinking. It may simply be that a sustainable (where no participants are victimized) version of this business model doesn't exist.
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