Tag Archives: restaurant

Build Your Off Premise Playbook! Only 36 Days Left to Register! – Join Me in Atlanta

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Join us June 6th in Atlanta where we will solve for the future of restaurant off-premise – takeout, delivery, and catering.

  • Strategies for Restaurant Leadership, Centralized Services, Sales & Marketing, Operations and Delivery.
  • Experience interactive sessions and dive deeply into the complexity of off-premise and the many order and delivery channels available to customers
  • Networking opportunities that foster and enable an environment of idea exchange and actionable strategies that attendees can take back to their organizations

Agenda:

1.Opening Key Note: Building Scalable Off Premise Strategies for today – and tomorrow.

  • Current Market Conditions, definitions, trends and size
  • Projections for off-premise sales growth and impacts on foodservice operators
  • Using data and strategic frameworks to adjust your operating model

2. The Impact of 3rd party digital ordering channels on your Off-premise Operations.  

  • Where your orders come from and why it matters
  • What’s the economic impact of 3rd party digital ordering channels on your bottom line?
  • How to organize data coming from different order providers
  • What’s the difference between a takeout or catering order, and why it matters?
  • What IT infrastructure is needed to process off-premise orders?

This session will explore the impact of 3rd party digital ordering channels for off-premise, including the battle for online order market share between your own e-commerce solution and 3rd party digital channels.  Participants will learn and discuss important strategies around menu differentiation by channel, and gain valuable insights into available cloud-based technology solutions to leverage the explosive growth of e-commerce orders.

3.What’s the right Delivery Strategy for your Brand?

Self-managed fleets or third-party partnerships? This session will explore the key strategic elements associated with designing a scalable, long-term delivery program for your brand. Participants will learn the different strategies needed for delivery, takeout and catering.  Participants can expect to walk away with a checklist of considerations for the right delivery program for your brand, and your customer.

4.The Art of Catering—Building a Professional Sales & Service Team.

This session will explore the key strategic elements associated with designing a scalable and sustained catering sales program for your brand, with specific corporate segments in mind.  Participants will learn new strategies for direct selling, and enhance their understanding of the roles and responsibilities of an off-premise sales team.  This session will further explore bonus and compensation packages for sales representatives and will focus on the importance of account acquisition, activating dormant accounts and the value proposition of corporate accounts.

5.The Future of Off-Premise – Deep Automation through Business Logic & Data Flow.

This session will look at the future of off-premise automation through the evolution and application of technology in foodservice operations.  Order systems will eventually communicate directly with foodservice equipment, self-driving delivery vehicles and perhaps even robots in the kitchen to aid in the execution of off-premise food service transactions.

Who Should Attend:

  • Directors of Restaurant Catering
  • VP’s of Restaurant Off Premise
  • Restaurant CEO’s, CMO’s, COO’s, and CFO’s
  • Restaurant Marketing Executives
  • Restaurant Operations Executives

To reserve your seat, click here.


Speakers and Panelists:

Mo Asgari Michael AktisonTracy Avolio Barbara BlackwellErle DardickBrian Farris  Paul Hicks Richard HodgesTrudy JonesEd KellerJackie Kurkjian Grace Prasanson   Jim Rand Jason Schlenker Melissa Wilson


Sponsors:

2.MMS 2.PepsiCo-Foodservice  2.LBP  2.InkTel  2.Voice-Tel  2.Primary2.RDS  2.GRA  2.WNA2.Georgia-Power(NEW)2.SCRLA 2.Southern-Champion-Tray 2.Technomics-New

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Grub hub? Doordash? Uber? Postmates? Dispatch?- Stop wasting your time

 

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OK.  I am going to upset a lot of people with this post tonight.  I’ve been at this for far too long and have watched our customers work way to hard to grow their restaurant companies.  And so, I’m throwing my hat into the ring on this 3rd party delivery issue.

As a restaurateur, are you feeling confused about your options of how to handle 3rd party delivery services?  Are you being bombarded by Doordash, Postmates, UberEATS and so many other providers promising you the moon?  Promising you more sales?

Well, good luck with all that!  It’s a shakedown!  None of these services are adding value or growing your sales.  It’s a ticking time bomb.

Read this article in the Washington Post last week, “Not All Restaurants Are Fans of Food Delivery Services“.  The author does a great job at demonstrating how restaurants are losing control over their brand and off-premise experience.

I applaud In n’ out Burger for taking a stand and suing these guys for misrepresenting their brand.

Need more?  Check out these employment reviews about Doordash one of the darlings of the industry.  That’s a whole lot of bad will right there.  These are the people that are delivering your brand to the consumer.  Do you really want your restaurant to be reflected this way?

Here is another guy, taking to Youtube to show how Doordash is messing him up.

Postmates?  No better.  Check out this reality.

And then there are these guys!  These heavy hitters are claiming that they are going to revolutionize the business.  Not a restaurant operator in the bunch.  Technology engineers that are pitching their “fast growth” stories to Wall street and getting billions of dollars in funding.  Do they have any appreciation for restaurant operations?

None of these companies seem to care about your restaurant operations.  If they did, they would appreciate how complicated they are making things for restaurants.   As a matter of fact, they are working hard to further disrupt your restaurant operations, and they are taking a piece of the action while they do it.  And because this is a technology play, people will get super rich in the process.  This has Dot Com all over it.  The business model is doomed.

Well, I am really concerned about where this is going.  It’s a runaway train and it’s going to create dismal economics for our industry.  A lot of restaurant companies are going to go out of business in the process.

Let me share with you that I have worked in restaurants for more than 20 years.  And I can tell you, delivery for takeout is (and always has been) a challenge.

Let’s work on an example:

  1.  Let’s take a transaction of $12.00 (sandwich, drink and cookie)
  2. If you are a GREAT operator, your gross margins are at best 35%.
  3. This gives you a gross profit of $4.20
  4. 3rd party delivery services are charging 18% – 25% as a commission.
  5. This equates to $2.16 to $3.00
  6. This reduces your gross profit to $2.04 – $1.20.
  7. Your realized gross margin is actually 17% – 10%, depending on your arrangement.
  8. If you look at the math, you will actually see that with this scheme, you are splitting 50% or more of your gross profit with these services.  It’s just not affordable.

Now, I can tell you from experience that with a gross margin this dismal, it is impossible to make any money on this transaction.  In fact, I might argue that you will lose money on this transaction and you are better off not taking the business.  This is steep discounting.  It’s not going to work.

So go ahead!  Ramp up your takeout delivery business with these 3rd party players and watch your profits fly out the back door.  Watch your customers walk out the door and watch as you lose total control over your takeout business.  BEWARE!

Here are some additional facts:

  1.  The customer is not yours.  The customer belongs to the 3rd party delivery company.  The orders are being placed in their database and systems.
  2. Depending on your agreement, the more you pay and the more transactions you allow, the higher your listing and more visible your restaurant is on their websites.  They will drive more “non profitable” business your way.
  3. Not one of these 3rd party companies is making any money.  They are ALL being funded by Venture Capital and Private Equity.
  4. The business model is not sound.  Neither restaurants or the delivery companies can sustain this model.
  5. Their valuations are starting to decline.

Conclusion:

If you want to deeply discount your products and quickly cannibalize your sales, sign up for these 3rd party delivery services today.  It’s a sure way to lose your money, and fast.  Oh, they will bring you a “ton of sales”.  Thats for sure.  But you will lose money on each one.  Good luck with that.

Delivery for takeout has always been a challenge because the cost of distribution is prohibitive.  Delivery for catering works because the order values make sense.  You can afford to absorb the cost of distribution when an order is a few hundred dollars.

Saying that, do you want this guy doing your catering delivery?  Seriously?

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This topic is complex.  My recommendation for restaurants is that they should focus on the basics.  Do what you do well.  Focus on your core business strategies and don’t run head on into a technology gold rush.

If you want to do delivery, then do it yourself.  Do a good job.  Take good care of your customers and just do a good job.  Pizza operators have done that forever.  Just ask them.

Focus on a solid catering and takeout program and take care of the last mile yourself.

My two cents.

 

 

 

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