And to comment on my assumptions.
I'm sure many McDonald's Operators have discussed the following in meetings but since I don't attend those meetings I'll contribute here.
Assumptions: The delivery service charges something like 15% commission (paid by the McDonald's Operator) and McDonald's Corp. charges the Operator full rent and service fees on 100% of the retail value of the order.
Let's say a store is paying 10% rent and 4% service fees. The store gets a delivery order that totals $20.00. Rent/Serv. Fees are $2.80 to McDonald's (14% X $20.00). The delivery service sends the Operator 85% of $20.00, or $17.00.
In this example effective rent and royalties on the transaction are 16.5% ($2.80/$17.00),
2.5% over the 14% paid on in-house sales.
So the operator is paying a total of 17.5% (15% commission + 2.5% increased McD fees) on
all delivery orders. With higher rent stores that 17.5% becomes 18%, 19%, 20% and beyond.
Why would anyone do that?