I just heard a report about Delivery and To Go orders are here to stay and restaurants which they would just go away.
Despite almost all covid restrictions easing, delivery and to go orders are still much higher than pre-covid. Consumers have grown accustomed to the conveniences or ordering from an app and never having to interact with a person. Fast delivery times and so on.
But deliveries are expensive. Most third party delivery services like GrubHub, DoorDash, Uber Eats and what not charge a 30% fee to the restaurant. Not to mention if something goes wrong with the delivery it's the restaurant that takes the blame if it if it's not their fault. It's also the restaurant who has to refund the consumer. This eats a lot out of a restaurants margin, and for some, delivery orders operate in the red.
When it comes to To Go / Pick Up orders, restaurants are struggling to balance the need of preparing all the food for To Go orders while taking care of the people dining in. In many cases, they simply don't have the capacity to keep up without a larger kitchen during peak times.
Restaurants are now fighting back. While many have been unsuccessful at getting rid of these options they added early on during the pandemic due to high consumer demand, they are trying to make them less desirable. For example, some have started passing on the 30% fee for delivery to consumers. Others are limiting their menu options for To Go and Delivery orders. And in some cases, a completely different menu is offered that is exclusive to To Go and Delivery orders. These exclusive menus are known as "virtual brands" and their goals are to be higher profit margin menu items, more efficient to fulfil orders and attract new customers.
My favorite restaurant in salem has tried to get rid of To Go service a few times now but always ends up bringing it back. They never had To Go or delivery options prior to Covid. They added a To Go window in the the back during Covids stay at home order. As soon as indoor dining was allowed again at full capacity they got rid of to go. Only to bring it back due to new waves / variants and consumer demand.
The latest version of the To Go window is by membership / club only. You sign up for 1 to 4 meals a month. Each meals is 4 servings. Their club menu is completely different from their dine in menu options, and you pick your meal(s) from a monthly menu and pick the day(s) you want to pick up your fully cooked meal box.
Apparently this membership meal box to go thing is a big hit and a lot of people do it. I suspect it's here to stay now.
Despite almost all covid restrictions easing, delivery and to go orders are still much higher than pre-covid. Consumers have grown accustomed to the conveniences or ordering from an app and never having to interact with a person. Fast delivery times and so on.
But deliveries are expensive. Most third party delivery services like GrubHub, DoorDash, Uber Eats and what not charge a 30% fee to the restaurant. Not to mention if something goes wrong with the delivery it's the restaurant that takes the blame if it if it's not their fault. It's also the restaurant who has to refund the consumer. This eats a lot out of a restaurants margin, and for some, delivery orders operate in the red.
When it comes to To Go / Pick Up orders, restaurants are struggling to balance the need of preparing all the food for To Go orders while taking care of the people dining in. In many cases, they simply don't have the capacity to keep up without a larger kitchen during peak times.
Restaurants are now fighting back. While many have been unsuccessful at getting rid of these options they added early on during the pandemic due to high consumer demand, they are trying to make them less desirable. For example, some have started passing on the 30% fee for delivery to consumers. Others are limiting their menu options for To Go and Delivery orders. And in some cases, a completely different menu is offered that is exclusive to To Go and Delivery orders. These exclusive menus are known as "virtual brands" and their goals are to be higher profit margin menu items, more efficient to fulfil orders and attract new customers.
My favorite restaurant in salem has tried to get rid of To Go service a few times now but always ends up bringing it back. They never had To Go or delivery options prior to Covid. They added a To Go window in the the back during Covids stay at home order. As soon as indoor dining was allowed again at full capacity they got rid of to go. Only to bring it back due to new waves / variants and consumer demand.
The latest version of the To Go window is by membership / club only. You sign up for 1 to 4 meals a month. Each meals is 4 servings. Their club menu is completely different from their dine in menu options, and you pick your meal(s) from a monthly menu and pick the day(s) you want to pick up your fully cooked meal box.
Apparently this membership meal box to go thing is a big hit and a lot of people do it. I suspect it's here to stay now.