Why Online Carry Out instead of Delivery?

Stefan Sanderson

The restaurant Carry Out business is bigger and better than it ever was.  Last year, 39 percent of all restaurant transactions were Carry Out.  Delivery made up just 3 percent, 21 percent were categorized as drive-thru, while 37 percent of revenue was generated from dine in guests.  With $799 Billion in sales last year, Carry Out made up $311 billion dollars of business in the restaurant industry.

Business truly is booming and with so much money pouring out of consumers’ pockets into the registers of restaurant owners, it’s not a surprise we have seen a rise in innovation from the likes of UberEats, GrubHub, and Doordash, all trying to grab a slice of the pie while its hot.  While these companies have been successful, the question I keep hearing is “Is this sustainable?”

A recent study from the New York Post revealed that the major pitfall of companies like UberEats, GrubHub & Amazon, among others, is the price-gouge factor. An article written by Chris Furmesiter at Eater confirms, “Rideshare giant Uber and online shopping behemoth Amazon have been expanding into the food delivery sector recently, following in the footsteps of many startups across the country. Companies such as GrubHub, Postmates, and Seamless, which charge restaurants roughly 12 to 24 percent of checks to use their services, have successfully blazed the trail, but UberEats and Amazon Prime Now are asking for a much steeper rate, reports the New York Post.  Amazon is looking to take a 27.5 percent chunk from partnered restaurants, and Uber is going a step further at 30 percent. The team behind UberEats says charging any less would be “unsustainable.”

With companies charging restaurants anywhere from 12 to 30 percent per order, the fear is that small businesses won’t be able to keep up with such an overbearing overhead cost.  So, what is the solution to this problem? BistroUX is giving smaller businesses a fighting chance in this growing Carry Out market by charging just $0.50-$0.99 per transaction, no matter the total Carry Out order value. This is hands down cheaper than any current competitors and puts more money back in to the pockets of local restaurant owners where it belongs.

Figure 1-1 (Mock Carry Out Order with Carry Out fee surcharge added.)

 

Figure 1-2  (Chart Data) (

Company Carry Out Price Fee Percentage Added to $20.00 Carry Out
BistroUX $20.00

 $.50

2.5%
Amazon $20.00  $6.00 30%
UberEats $20.00 $6.00 30%
GrubHub $20.00 $2.70 14%
PostMates $20.00  $3.00 15%
Seamless $20.00  $2.60 13%
Doordash $20.00  $4.00 20%

 

References:

Bombkamp, Samantha. (31, August. 2017).  “With carryout and delivery on the rise, restaurants are getting redesigned.” Chicago Tribune. Retrieved from http://www.chicagotribune.com/business/ct-restaurant-digital-renovation-0903-biz-20170831-story.html

Furhmesiter, Chris. (9, February 2016). “Amazon, UberEats charge resaurants hefty delievery fees.” Eater. Retrieved from https://www.eater.com/2016/2/9/10940754/ubereats-amazon-restaurant-delivery-charges

National Restaurant Association.  (2017). News & Research – Facts at a glance.  Retrieved from http://www.restaurant.org/News-Research/Research/Facts-at-a-Glance