Coalition of Franchisee Associations

July 19, 2017

More On Delivery Services

“A customer will equate the delivery person with your restaurant even if it’s a 
third party, so that’s something to take into account,” 

How restaurants can launch effective delivery services


Richard Adams said...

Comment from the latest McDonald's Operator survey: "UberEats - if you sell a $12.00 average check, make the food, have Uber deliver food then pay full rent and service fees, who benefits from the sale?"

Richard Adams said...

If operators are required to pay full rent and service fees on the entire $12.00 sale and only receive a portion of the $12.00 back from Uber that means their "effective" rent and service fees have been increased. Does this mean every store will need a modified or new franchise agreement and lease?

Feel free to check my math:

Our hypothetical store pays 10% rent and 4% service fees (14%). If it pays 14% on
the full $12.00 and receives $10.20 (85%) from Uber that's an effective rent and
service fee of 16.47%, an increase of 2.47% over the contractual percentages.

Since OPNAD and Co-Op arrangements are in flux I won't try to do the math
there but if their percentages are charged on the full $12.00 then their
effective percentages will also increase.

But, it's for the good of the brand, right?

Anonymous said...

Years ago we stopped donating products to churches and other groups at the insistance of MCD because of product liability. Now, to give completed product to a total stranger to deliver to our customers exposes MCD to the same product liability, in my opinion. I'm sure the legal team has reviewed this and just maybe it is worth the risk. Did our insurance carriers weigh in on this?