61–70 of 109 posts
All the pizza huts by me have switched to carry out/delivery only and now they are removing delivery. Pizza hut is a shell of what it once was.
Earlier quoted context omitted.
If rent is the predominate cost, why do pizza delivery only ghost kitchens not take off? Doesn’t matter where it’s made, just where the customer is. You could make them in a shipping container dropped in a big box parking lot with a roll up door for delivery drivers to load their trunk, like Spirit Halloween for pizza. What am I missing? You don't need a robot pizza machine, you need an operating model where rent doe…
That's what Chuck E Cheese should be doing. They've got the playground/arcade business to be able to subsidize their pizza business to out-compete every other pizza chain out there. Instead, they're cutting costs on both fronts to have...two bad businesses.
> Customers must use third-party apps like DoorDash, GrubHub and Uber Eats for food deliveries at the affected chain restaurants. I don't order delivery very often, so I was surprised when the last time I did it, the pizza place that advertised delivery just silently passed the order on to Doordash, with all the downsides of that process (data sharing, increased price, decreased pay for the driver, and generally wors…
> with all the downsides of that process (data sharing how is that legal?
There's a lot of unreasonable abuse of private data in the US, but this isn't it.
Earlier quoted context omitted.
I wouldn't be surprised if with the rise of Uber Eats / Doordash, they were wanting to get out of the business of first-party deliveries anyway, and saw the wage increase as a final straw. I can't imagine that these companies particularly want to be in the business of last-mile logistics, so much as that historically it was a very complimentary business to selling pizza. Now that companies have sprung up around a com…
…but this is pizza, and pizza is a somewhat unusual food that is both commonly delivered and degrades quite quickly after being prepared. So a nearby pizzeria with its own delivery drivers that has a degree of operational competence can get that pizza in a car immediately, which means that the customers get better pizza, which means they order more pizza from that store. Uber Eats and DoorDash don’t seem to manage to…
This feels a little short-sighted. Just this year, New York City implemented new minimum payment schedules for "self employed" app delivery drivers, which brings their minimum hourly payment to nearly $30/hr. I will strongly suspect that the big centres in california will do likewise, or potentially the state as whole.
Yeah, stopped using delivery for that reason. It got hilariously too expensive.
Perhaps Yum Brands has the data to back this up, but it seems quite a silly response that feels more political/ideological than based on sound economics. BIL was COO of a pizza chain. The cost for a large pizza was around $1.50 - even for pricey toppings and gluten free bread. Labor is cheap at ~60 seconds per pie. Biggest costs was rent. A $5 raise could be absorbed across and then some with a 10¢ increase in price…
If rent is the predominate cost, why do pizza delivery only ghost kitchens not take off? Doesn’t matter where it’s made, just where the customer is. You could make them in a shipping container dropped in a big box parking lot with a roll up door for delivery drivers to load their trunk, like Spirit Halloween for pizza. What am I missing? You don't need a robot pizza machine, you need an operating model where rent doe…
Perhaps Yum Brands has the data to back this up, but it seems quite a silly response that feels more political/ideological than based on sound economics. BIL was COO of a pizza chain. The cost for a large pizza was around $1.50 - even for pricey toppings and gluten free bread. Labor is cheap at ~60 seconds per pie. Biggest costs was rent. A $5 raise could be absorbed across and then some with a 10¢ increase in price…
Maybe Pizza Hut has gotten out of the delivery business because nobody in their right mind would order delivery from Pizza Hut, since they almost always have better options.
Maybe they are focusing more attainable markets: people who wandered in off the street, people who wanted Taco Bell but were really high and forgot, third option not found.
Perhaps Yum Brands has the data to back this up, but it seems quite a silly response that feels more political/ideological than based on sound economics. BIL was COO of a pizza chain. The cost for a large pizza was around $1.50 - even for pricey toppings and gluten free bread. Labor is cheap at ~60 seconds per pie. Biggest costs was rent. A $5 raise could be absorbed across and then some with a 10¢ increase in price…
Pizza places have been charging for delivery for a few years now. They don't just absorb it by increasing pizza prices anymore. My guess is their volume has gotten so low or extremely variable that it's hard to plan for the correct number of drivers each night, and the marginal cost of another driver is so high now that they can't just have extra drivers hang around doing nothing, and it's probably harder to keep drivers because they're being poached by all the delivery services.
Strategically, it makes a lot of sense. There are at least a half a dozen popular delivery services with thousands of drivers.
Earlier quoted context omitted.
Yeah, stopped using delivery for that reason. It got hilariously too expensive.
the pay bump i'm talking about is very recent, but yes, I agree, delivery became too expensive. And it's no wonder. Restaurants delivering have very low overhead. A phone line and a delivery driver. When you're on grubhub/doordash/etc, now somebody has to pay for a mountain of software engineers, marketing expenses, servers, customer service people, executive comp, etc. It inserted an expensive middleman where there…
Perhaps Yum Brands has the data to back this up, but it seems quite a silly response that feels more political/ideological than based on sound economics. BIL was COO of a pizza chain. The cost for a large pizza was around $1.50 - even for pricey toppings and gluten free bread. Labor is cheap at ~60 seconds per pie. Biggest costs was rent. A $5 raise could be absorbed across and then some with a 10¢ increase in price…
This reminds me when obamacare was being debated and the papa johns ceo said if it passed he will have to raise the cost of all pizzas by 25 cents to give his employees health insurance. I'm like wtf, that's all? why haven't that been done already.