| You're right, of course. We'll ultimately try multiple channels. Actually our first channel we're trying is wholesaling to coffee shops. We are really treating it a bit more like a startup in the sense that we have opinions, are testing them, but will iterate and are open to changing course based on the feedback we receive from the market. There are a few reasons why the initial thesis is to stay away from Door Dash/Grubhub. (A) cost - since we're not at scale, our unit costs are... not great. With the Door Dash cut, we'll almost certainly be in negative unit cost territory. (B) Door Dash / GrubHub are an on demand business. A customer goes online, picks an option, then we fulfill it within X minutes. Subscription and wholesale allow us to BATCH our output (and therefore labor and facility inputs). This makes cost management way easier for us up front. So right now, we can get off the ground just hiring people 2 days a week, but that wouldn't work with the normal Door Dash model. Once we have our basic costs covered by the predictable orders, it'll be a lot easier for us to add on demand options
and it won't add incremental labor costs. Tock To Go is probably an early option for us though due to allowing low costs and future pickup ordering (Hi Nick Kokonas, I love you!) |