With the cost of gas, labor, etc., the profit margin has to be pretty slim. Am I wrong?How do restaurants make money on food deliveries without charging a separate delivery fee?
The mark up on resturaunt food is pretty substantial.
Consider when you cook at home vs. when you eat out.
It cost you pennies by camparison.
Now consider how mush more you would save if you bought your food at bulk.
The resturaunts are still making a pretty penny.How do restaurants make money on food deliveries without charging a separate delivery fee?
you are wrong. They pay minimum wage for the hour and a person can deliver about 80-100 dollars worth of food an hour. The driver covers his gas through tips. Food is typically marked up 300 percent. If you pay 20 dollars for a large pizza it only costs about 5 dollars to make.
Minimum on quantityHow do restaurants make money on food deliveries without charging a separate delivery fee?
they increase the price odf the food items.(i.e. the cheat you)
For the restaurant the price is exactly the same. They would still have to have someone to either help or "wait" on people. That person would have to be paid. Deliverers pay for their own gas, again no output for the restaurant, but the key thing is they are reaching to a market they wouldn't have otherwise. So if I have a choice between Little Italy that delivers and Pizza Nova that doesn't, 9 times out of 9 I'll call Little Italy; If they're any good, that brings in word of mouth business etc. or you might be more likely to go there for lunch or something else, because you've developed a "relationship" with that restaurant. I think it's brilliant and can't figure out why every restaurant DOESN'T deliver!How do restaurants make money on food deliveries without charging a separate delivery fee?
they dont have to pay a server, and the delivery person can deliver more meals than the server could handle, and they dont have to clean dishes, employ bus boys stuff like that
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