Coalition of Franchisee Associations
Delivery: Everybody's Doing It
Is there anything worth a premium from 7-11?
Like I've said, the entire delivery business will be "all wide and very thin". A broad base of consumers will order delivery - occasionally.
7-Eleven testing mobile delivery and pickup app - NRN
Based on what Ive experienced, I hope delivery FAILS
Delivery is here to stay whether we like it or not, retailers probably said the same thing about Amazon 10 years ago.
In the 80’s the Drive-Thru was invented and people wanted to Drive-thru not get out of their cars, would you build a McDonald’s without drive-thru today of course not, unless a special venue? Well now millennials don’t want to get in their car they want to pick up their phone and have stuff delivered to them. The next generation iGen/GenZ this will be the normal way of doing business with retailers. If you don’t have the ability to deliver your product to this generation you mine as well be out of business if your going to rely on them only coming to your retail establishment good luck 10 years from now you will be probably giving up at least 25% of your business.
That is the current theory isn't it? But will millennials and all the different Gens be happy with mushy fries and luke warm hamburgers?
And what's going to motivate franchisees of any brand to fully develop delivery sales if those sales are not profitable? Why would franchisees allocate their precious advertising contributions to advertise delivery?
As to drive-thrus - fast food drive-thrus were invented in the 1940s and 50s by chains like JIB and In'N Out. It's true that McDonald's didn't get fully into drive-thrus until the early 1980s. But few McDonald's Operators would have gone for the drive-thru remodel if they had to pay a 20% commission to a third party on every drive-thru order.
Heres a counter to your drive thru analogy. In the 1980s and 1990s, MCD put playlands nearly everywhere. Today we are being told to remove them. Are we no longer a kid friendly family restaurant? Is it too much to ask for some consistency here?
Modern & Progressive ?
IF delivery will be 25% of my sales in ten years, WHY AM I SPENDING MILLIONS ON MRPs??? On kiosks ?
In 99% of stores, delivery will never account for more than 1-3% of sales. And the exorbitant fees guarantee you to LOSE money.
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