[rattray]

> Isn't part of being a successful business knowing where to put your energy as a business owner?

If you own a small restaurant... are you really in it to be a tycoon of industry? Or are you passionate about the food and the community?

I know I want to spend as little time as possible thinking about sales and marketing, and just focus on improving my product and making my customers happy.

[bobthepanda]

Most small restaurants fail within a year of opening. It’s a very tough business.

Some app claiming that you are partnering with them for delivery when that is not the case is not necessarily positive for a business given potential reputational risk.

[chrisseaton]

> Most small restaurants fail within a year of opening. It’s a very tough business.

Why is that? Seems straightforward - exchange food for money. Why's that so difficult to make work?

[bobthepanda]

1. there's lots of competition. restaurants are an extremely common business in existence and to start.

2. product market fit. you think your cooking is good. Do other people think your cooking is good? Do other people think your cooking is worth coming back for in a week, a month, or a year? You can try and do trendy things in food but these trends come and go quickly.

3. Rent and capital costs. It is expensive to fit a space for a kitchen, so you probably took a loan for that. Landlords are trying to squeeze every dollar they can out of you. There may be cheaper options than a leased space like a food truck or a sidewalk stand, but if they're even legal where you are the permits aren't cheap and there's usually a long waitlist. And better locations with more foot traffic cost more money.

4. Labor & management. Most people do not have experience running a restaurant's operations, which have to be tightly managed to both keep expenses down and keep service at decent levels. Bad service will turn customers away for good and bad word of mouth can snowball.

5. Margin. The tendency for new restauranteurs is that they underestimate their expenses and how much margin they need to be making. Prices need to be right for the market you're trying to serve, but you also need to not scare away too many customers. What pencils out in a home kitchen is not necessarily what pencils out in a restaurant.

[jldugger]

As far as I can tell, every home for sale or rent in america requires a kitchen. So basically everyone is in competition with them.

[save_ferris]

> I know I want to spend as little time as possible thinking about sales and marketing, and just focus on improving my product and making my customers happy.

That's fine and understandable, but you also have to weigh the risks of delegating those responsibilities to external parties that don't necessarily care about your success because they have thousands if not millions of customers. Not to mention the restaurants that don't want any part of the delivery platforms altogether because they don't like what they're seeing.

In an opt-out model, the restaurant has to take time to deal with (and possibly remove themselves) from a platform that didn't ask for their business, potentially dealing with upset customers along the way. Wasn't the whole point of this idea to reduce time and energy spent on these kinds of activities to focus on the food and the community? If you had no idea that you were on one of these platforms and an angry customer reaches out to you, how does that benefit the restaurant?

It's really strange to see a collectivist for-the-greater-good argument being applied in a business sense here because it's based on two incorrect underlying assumptions: that every business owner wants the same thing (automated marketing and logistics services handled by one provider), and that platforms will always act in the best interests of their users. As a hypothetical business owner, shouldn't I have the right to prevent delivery platforms from using my restaurant without my permission? Say I get a bad experience with a delivery platform once, and I remove myself. Now I have a keep a lookout for any other platform that wants to use my name, all because those platforms made the argument that they know what's best for the restaurants and then didn't measure up. The road to hell is paved with good intentions.

[rattray]

> As a hypothetical business owner, shouldn't I have the right to prevent delivery platforms from using my restaurant without my permission?

> The road to hell is paved with good intentions.

We certainly agree on both of these counts!