August 6, 2017

Restaurant Analyst John Gordon Looks At Delivery

Your mileage may vary

For a QSR franchise John uses a 5.5% "royalty" so he probably assumes the 
franchisee is paying a fixed amount for rent, not a percentage. McDonald's 
Operators would probably want to add 8/10/12% to that line item.

The "Ad Fund" line would probably be higher.

John uses a delivery commission of 25% - Yikes!

As you can see, even with a $12.00 average check this doesn't work for a QSR 
and it works marginally for a casual dining location, even with a $57.00 check.
.

7 comments:

Anonymous said...

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?..

Anonymous said...

Of course had I recognized that I by no means would have used Intuit Payments
to start with.

Anonymous said...

In this market operators are buying down rent to 12% on new stores otherwise they would be paying 14% and higher. There are some misunderstanding on the part of UBER that is to our benefit. based on CPA recommendations we are placing extra money into escrow and we don't want to alert them. interesting turn of events.

Anonymous said...

escrow? more details pls?

Anonymous said...

We are making too many decisions based on pie-in-the-sky ideas from Chicago

Anonymous said...

Look at the initiatives we are signing up for that are not good business decisions. We will never get an roi on EOTF and we'll lose money on every udereats order. Is this a real business anymore or a just fundraiser for McDonald's stock holders? I'd rather do fundraisers for RMHC.

Anonymous said...

ESCROW = Hide your money from them. Do not include on Balance Sheet. Smart move.