« Goodbye to traditional TV advertising | Main

Restaurants without seats

Restaurants without seats make more sense than ever in markets with expensive real estate. However, takeout may have to compensate for the high cost of delivery. 

Key points from the Entrepreneur.com article:


  • “The era of the 30- to 50-seat restaurant is over”. “With rents like that, you would have to charge prices nobody wants to pay. And you’re breaking your back to scrape by.” 
  • However, “One of the pressures we’re facing is that our delivery partners aren’t as advanced as we need them to be”. Under Ando’s initial model, the cost of delivering an order was about $6, of which the company charged customers $3 and contributed the rest. Taylor thinks that cost could go as high as $10 in the long term. The underlying economics would be similar if Ando employed couriers directly. 
  • Taylor is hopeful that as demand for delivery increases, so will efficiency, and costs will eventually come down again. But in the meantime, the business is accepting orders for delivery as well as takeout


Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
All HTML will be escaped. Hyperlinks will be created for URLs automatically.