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What’s your long-term game plan?

12/25/2023

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curbside
​Even before the pandemic, the shift from on-premise to off-premise dining was happening. But the pandemic truly accelerated it, and even as people return to restaurant dining rooms now, there is still a way to go before things look the way they did a couple of years ago. To be sure, the trend is especially stark for full-service restaurants – new data from FSR Magazine indicates that in September of 2019, 80 percent of traffic at full-service restaurants was on-premise (compared to 20 percent for carryout), whereas the mix in September of 2021 was 56 percent on-premise, 44 percent carryout. Still, across restaurant categories, an operator needs to make a clear-eyed assessment of their business model in light of current market conditions, then take steps to protect the business for the long term. That means expanding, not limiting, opportunities to serve guests – and resisting the urge to revert back to how you were operating pre-pandemic. Consider new opportunities for catering, particularly as businesses are looking for ways to maintain connections between hybrid workers and clients. Keep communication open with neighboring restaurants and complementary businesses that may be able to pool resources, share staff, or collaborate with you on promotions. Think about how to make it easier and faster for your food to reach guests who want to eat it off-premise, whether that means assessing third-party delivery providers to find the best-possible arrangement, starting an in-house delivery service or using a ghost kitchen. ​

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​Delivery  - will you use a Third-Party Service or your own staff?

12/24/2023

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delivery
​With operating cost increasing and possible incoming decreasing, it is more important than ever to look at your reveune streams and areas were you are spending more money.  Chances are your delivery business has been increasing as well as your delivery costs.  Now is the time to determine if you are going to use/continue to use a third party delivery service or if you will self deliver.  Here are a few things you should consider:
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  • If you have a current arrangement with one or more third-party delivery service, contact them to ask for a fee reduction.
  • If you do not have a current third-party delivery relationship, secure quotes for long-term relationship  
  • If you do not charge a delivery fee today, determine if you can competitively charge a fee or raise delivery menu prices.
  • Do a pro-forma P&L on different levels of sales made through delivery using your negotiated third-party rate vs. what it would cost you to establish your own service
  • Determine how to scale up your self-delivery business if business improves rapidly
  • Remember: if orders come in through the third-party delivery service, THEY own the data and customer information. With Self-Delivery, YOU own the data and your relationship with your customer.
  • The biggest delivery services charge is between 20% and 30% of the meal check for their service
  • Some local governments are trying to regulate those charges – San Francisco is capping fees at 15%. There is great deal of change that will happen with the third-party companies over the next 12-18 months. Who wins (the operators or the delivery companies) is yet to be seen.
  • If Self-Delivery is an attractive idea for your business, here are some steps that you should take:
  • Choose responsible drivers
  • Check driving records
  • Make decisions on using employee vehicles vs those owned by the business
  • Establish cleaning & sanitation protocol for the drivers and the vehicles
  • Secure Vehicle Insurance & Liability Insurance
  • Self-Delivery Cost Components
  • Insurance
            Liability
            Auto
  • Employee 
  • Vehicle Cost
            Auto Loan/Lease or Employee Reimbursement
            Operating Cost & Maintenance
  • Food Warmer/Cooler Equipment (thermal delivery bags, etc.) 
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  • Home
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  • Inflation
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