Coalition of Franchisee Associations

May 28, 2019

Doing Without Delivery

"But more companies are shifting their focus to profitability, getting bolder in their 
 demands in the process."

Why a big Applebee's franchisee may ditch delivery


Anonymous said...

From the article- "“So far, we’re seeing our dine-in and carside-to-go business rise faster in the markets where we canceled delivery than in markets where we still maintain it,” said Greg Flynn, the company’s CEO and chairman.

Flynn is not anti-delivery— The problem, Flynn said, is margins. He doesn’t believe the service is worth the disruption it can cause to the in-store business if it’s not going to at least be margin-neutral.
“As an industry, we may be in a good position to take business” away from grocers, he said. “But for that to be attractive to us, given that there is lower incrementality and it’s disruptive to our dine-in business, it needs to be a margin-neutral channel.”
That means the cost must either come from the delivery provider or, more likely, the consumer. And restaurants have to be able to charge their full prices.'

Amen,amen and Amen. Somebody gets it! (NOT MCD). The only ones who make money off our deliveries is MCD and UberEats.

Anonymous said...

Raise your delivery prices. Problem solved. Everyone happy.