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by jasonlaramburu
1106 days ago
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Little Star Pizza is one, if not the best, pie in the Bay Area. It's very well known and loved. It is surprising that customers wouldn't be willing to order delivery directly from the restaurant, especially if they could pass along some savings. |
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I think that restaurants don’t want to hire their own delivery drivers and staff.
These Togo orders are basically “extra” that typically wouldn’t exist. And delivery companies know that. So it may be 30-50% of revenue but that’s in addition to what the restaurant would pull down as dine in only. Or just Togo where customers get it themselves.
I think there’s an opportunity for a more efficient Uber eats competitor that charges lower prices. But I think restaurants will just pay their fees.
In my area restaurants just keep jacking up their fees to cover commissions and people keep ordering. My favorite pizza place is $20 in person and $30 through Uber eats. They fired all their delivery people about two years ago.
People order McDonald’s for a $20 happy meal. So people just keep paying.