"Incremental Sales" can be a misleading term. Of course in a franchise system corporate
and shareholders love incremental sales because they get their slice of the action no
matter what happened down the line.
The example of a hotel operator being happy to pay a commission to rent an empty room
is apt. The room's sitting there ready to go and all the hotel has to do is hand the guest
their key and re-clean the room the next day.
But incremental sales at a restaurant are different. The restaurant operator has to pay
for the food, packaging, labor,and all other misc. costs. Plus pay the franchisor rent and royalties on the sale. Plus put up with a distraction in their operation. In the end, the
restaurant operator absorbs all the liabilities of a delivery order and would probably be
better off without that "incremental" sale.
Thanks to "anonymous" for this link.
What the fast casual industry can learn from hospitality's $2.5 billion brawl .