December 7, 2017

Everybody's Doing It

Wendy's Follows McDonald's Into Delivery - Financhill


Anonymous said...

Bet their deal with delivery company is better than our deal with UBER

Anonymous said...

When McD ruled the Quick Service World. No dollar menu

Anonymous said...

Delivery is the wave of the future whether we like it or not; either a third party is going to do it for you or your own employees. Not sure why Richard has so much on his blog on delivery? The big deal or should say huge issue is $1, $2 & $3 selling stuff at over 40% food cost, that is where the O/O energy should be, that menu is going to be a total money loser in many markets; although your going to have some great TC counts.

Richard Adams said...

Your timing is perfect, I was working on another post about McDelivery when your comment came in. Several things drive what ends up on this website, things I find interesting, things I think Operators are interested in, links to articles that Operators send in, or maybe the concerns of the last Operator who called.

I guess the new Dollar Menu hasn't been mentioned much because Operators have been grousing about loss-leaders for twenty years or longer and yet discounts still get affirmative votes.

But McDelivery is interesting because it's a major change to the McDonald's business model (more on that later). I agree that delivery is a wave but now that every chain is jumping on board McDonald's won't have anything unique to offer.

I was in McOpCo and field service when we were building stores in smaller and smaller towns in the Southwest. One of the more cautious regional managers was fearful of building stores in highway towns he called "All long and no wide".

That's how I'd describe Delivery "All wide and very thin". A lot of people will order food delivered and every restaurant chain will have delivery in some form, so no one will do much volume per restaurant.

Analysts will write about the billions of dollars being rung up and corporate managements will tell investors they are pursuing "more share" of that business. But only the mature pizza chains will make any real money in delivery.

And McDonald's Operators who work to maximize the delivery business will only enrich McDonald's management.

Talk about a loss-leader.

Anonymous said...

McD charging you rent and service fees on the TOTAL delivery transaction (Menu price PLUS the 15% UBER fee) is an abomination. Our "partners" are double-dipping and cheating us. AGAIN.