Why don't small restaurants deliver but accept pick-up orders?

Author	Message

siyan

Total Posts: 4
Joined: 8/24/2011
Location: New York, NY

Why don't small restaurants deliver but accept pick-up orders? Wed, 08/24/11 11:33 PM (permalink)

[Helpful answer received] / [List Solutions Only]

Hi,
I've never worked for a restaurant before and that's is why I'm posting this question to all of the restaurant owners on this forum. I'm trying to understand if the reason for not offering delivery service is the cost associated with having someone available to deliver orders or is it another reason why so many small restaurants don't deliver?

Your input is very appreciated!

Cheers,
Siyan

#1

Dr of BBQ

Total Posts: 3159
Joined: 10/11/2004
Location: Springfield, IL
Roadfood Insider

Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 12:01 AM (permalink)

[This post was marked as helpful]

it's the overall cost involved.
Insurance including the liability for the driver and others in case of an accident. Insurance in case something happens to the driver (robbery) and he or she gets mugged or killed.
Labor
Gas
Advertising to let people know you deliver

There are a ton of expenses involved.

On the other hand if you drive up and pick up your order no expense involved at all.

Why the question your first research project now that your back to school?

#2

edwmax Total Posts: 1463 Joined: 1/1/2007 Location: Cairo, GA	Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 12:58 AM (permalink) ... ....
	#3

siyan

Total Posts: 4
Joined: 8/24/2011
Location: New York, NY

Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 6:18 PM (permalink)

Dr of BBQ,
Another reason why I'm trying to determine the reasons for small restaurants not delivering is because I'm debating whether it will be useful for those restaurants to have a delivery company X take on this responsibility off their showders. Based on your experience, do you think there will be a demand for a third party company (delivery company X) to be available for calls when restaurants need to deliver orders to customers? This way, restaurants won't have to worry delivering orders themselves and they won't have to worry about the costs you listed above. What is your intake on this? Does anyone have another input? Would this idea work?

Thanks,
Siyan

#4

CajunKing Total Posts: 4966 Joined: 7/6/2006 Location: Aurora,In 47001 Roadfood Insider	Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 7:36 PM (permalink) [This post was marked as helpful] Siyan Yes this idea works, there is actually a company that does this for many different states and many places. It is called Take Out Taxi they have been around for over 20 years. www.takeouttaxi.com
	#5

FriedTater

Total Posts: 336
Joined: 6/21/2008
Location: Badlands of New Mexico

Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 8:14 PM (permalink)

Know a guy here locally who thought he`d do like the above takeouttaxi. Spent lots of money, got new Toyota pick-up, advertising all over it, I think he made one delivery. Of course, our town is small, doesn`t take long to get from one side of town to the other, so paying somebody 5 bucks to pick-up something for you is out of the question.

#6

edwmax

Total Posts: 1463
Joined: 1/1/2007
Location: Cairo, GA

Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 9:16 PM (permalink)

[This post was marked as helpful]

siyan,   ... now you explained your question and narrowed down the answer.

Yes, this is done in large cities.    ... There is 2 possibilities for this to work.
One.   A customer calls a restaurant and places a decent order ($$) and ask it to be delivered.   The restaurant doesn't deliver, but tells the customer they have a service that will deliver and the adds fee to do so. The restaurant pays you.   But you don't really need a contract with the restaurant; only they know you are available and you delivery fees.

Two.   A customer calls you directly and ask you to pickup his prepaid orders (possibly from multiple restaurants) and deliver. The customer pays you.

Now your question:   ... The problem that I believe you will have is keeping hot foods hot; cold foods cold; deliver these in an acceptable condition for the customer; and at proper temperature to prevent food borne illness.    ... Most likely you & your equipment will still have to be inspected & approved by the local HD. You are working as a type of Catering service.

** However, a $15/$20 delivery fee for a $5 burger is not going to work; except for a Drunk that can't drive.

#7

edwmax Total Posts: 1463 Joined: 1/1/2007 Location: Cairo, GA	Re:Why don't small restaurants deliver but accept pick-up orders? Thu, 08/25/11 9:29 PM (permalink) [This post was marked as helpful] oh ... the pickup & deliver service also works for elderly people that need meds or groceries delivered because they're ill and can't drive.
	#8

jcheese Total Posts: 293 Joined: 3/5/2011 Location: Fieldale, VA	Re:Why don't small restaurants deliver but accept pick-up orders? Fri, 08/26/11 7:55 AM (permalink) This place caters to partiers to keep them off the road. www.midnightmuncheez.com
	#9

siyan

Total Posts: 4
Joined: 8/24/2011
Location: New York, NY

Re:Why don't small restaurants deliver but accept pick-up orders? Fri, 08/26/11 6:19 PM (permalink)

Thank you all for you insights, feedback and links posted. I will definitely think of how this business can be made work in my city. The city I'm in is a busy city with very populated areas, kind of like Manhattan in New York. I think as FriedTater said this business can't succeed in a small town.

May be some of you can answer some of the following questions about TakeOutTaxi:
How popular is TakeOutTaxi across US? Do you know if they have a big clientele? Do you encounter them frequently when you order food for delivery? Do you see them often on the street? Or are they kinda transparent (a regular Joe in his shirt and jeans)?

My greatest concern will be how much of demand that delivery service will be for small restaurants. I guess the best way to find out is to talk to them personally.

If anyone can provide me with more information or other links to check out by companies that are already doing something similar like takeouttaxi.com please let me know.

Cheers,
Siyan

#10

bartl

Total Posts: 665
Joined: 7/6/2004
Location: New Milford, NJ

Re:Why don't small restaurants deliver but accept pick-up orders? Sun, 08/28/11 12:56 AM (permalink)

I was once involved with a cab company that tried to set up a food delivery service when business was off; their drivers would deliver food for local restaurants for a monthly fee, with the drivers getting the tips. It didn't get enough interest, and the drivers were annoyed at some of the low tips (like one office about 4 miles from the restaurant where, for a $50-60 lunch order, they would typically give a dollar tip; drivers hated to take that run, preferring to sit around earning nothing than drive for 20-30 minutes to earn a dollar or less).

Bart

#11

nom nom nom

Total Posts: 30
Joined: 10/13/2010
Location: Orlando, FL

Re:Why don't small restaurants deliver but accept pick-up orders? Sun, 08/28/11 9:50 AM (permalink)

The rub is 3rd party = bigger check. If you live in a city like NYC where many people don't own a car you might be onto something. Maybe people will pay an extra% for delivery options. Take Out Taxi is already operating in the places where it is feasible to do so.
Another option might be grocery delivery to shut-ins...or...if you want to stick with food delivery offer something that most restaurants don't like bringing convenience store stuff like beer or cigarettes along with the food.

#12

siyan

Total Posts: 4
Joined: 8/24/2011
Location: New York, NY

Re:Why don't small restaurants deliver but accept pick-up orders? Tue, 08/30/11 1:49 AM (permalink)

Yes, you have good points bartl and 'nom nom nom'. I have quite bit of trouble how the bill and the delivery services will be paid for. Customers have to be charged only once and the delivery guy should get the tips....which leaves me with the option to directly take their orders like Waiters on Wheels or Waiters EnRoute. Hmmm, those services are already running.

- Siyan

#13

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