shaneknysh

shaneknysh t1_j6l5l5t wrote

I'm sure your restaurant is thriving. While working as a delivery driver, the restaurant owners and managers I talked to none liked the delivery apps. Some used it because they didn't have delivery otherwise but it dropped their margins to 2% or worse. Others used the delivery services because they saw a drop in orders to Skip and Uber Eats. They couldn't drop in house delivery or they would lose call in and direct orders that earned more. Now they had 3 competing delivery services and Skip and Uber out bid them for online advertising for their own restaurants.

But the next time I talk to them I'll pass on your advice. I'm certain raising prices or charging for delivery has never occurred to them.

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shaneknysh t1_j6ky1p0 wrote

The delivery service takes 18% or more from the restaurant so the restaurant is very close to making nothing on the low price orders.

For SkiptheDishes the minimum for an order is $6 for an order if you accept 90% of your orders. If the customer tips the tip is not added to the $6, so a $3.00 order with a $3 too is $6 not $9. Plus for years there was no minimum.

There was a community based not for profit solution to compete against the delivery services. The local restaurants could set up the service and hire delivery drivers as employees. The operating costs were split by percentage of orders. If the pizza place got 50% of the orders then they pay 50% of the costs.

Last I heard Skip bought the software behind the service and killed it.

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shaneknysh t1_j6kswtw wrote

>It means the company has so much cash that it doesn’t even know what to do with it. So they buy back stock.

Or the company has so much cash and no incentive to lower prices or improve employee compensation. There only incentive is to improve profit.

In the before time the highest tax brackets meant that at some point a company made enough then the company could pay 10000 in taxes or raise compensation by 8000. The company could then choose to pay their employees or pay the government.

The companies still made huge profits but there was incentive beyond just rewarding shareholders.

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