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Originally Posted by EndoftheBeginning
Interesting to see Stella's put some hard numbers out there for what Skip the Dishes is charging.
http://www.cbc.ca/news/canada/manito...shes-1.4765317
They are dropping them mainly due to costs and said in the last year, they did $1.8 to $2.0 million in delivery sales with Skip and paid Skip 25% - 30% per order. Math says that is $600,000 paid to Skip for one year for one restaurant. Skip has 12,000 restaurants signed up in Canada.
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Quote:
Originally Posted by esquire
^ Ugh. That is brutal. So the model is to become indispensable to a restaurant and then ratchet up the take?
I'm actually surprised that Skip the Dishes is as popular as it is. So much of what you pay for at a restaurant is presentation, ambience, service, etc. It's fine for pizza but the idea of ordering a steak from The Keg or wherever and having it dumped into a box and sent over is just depressing IMO. I mean, I get it if you're a shut in, but I'm guessing most of the users are perfectly capable of going out to a restaurant.
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Brutal? That's impressive!
Obviously ordering steak isn't a smart person's first choice, but it remains the best option for people with kids and little time, people who've had enough to drink, people who want to get laid earlier in the evening rather than later or not at all... these have all applied to me lol.
If my wife and I didn't have kids or they were just a touch older, yeah, restaurant time, but usually skipping is an impulse decision that is easier to sort out than a last minute babysitter.
It's simple... is it worth it to the restaurant? You jack up your production but don't need to hire more service, volume soars...etc. Obviously Stellas found their threshold where it's not worth it to them...
Quote:
Originally Posted by EndoftheBeginning
Seems like an overcharge, but I can't guess how much it would cost to operate your own delivery service on a per order basis. Minimum wage kid working for tips plus a beat up car is probably not in the 25-30% range.
I was more shocked on the volume of sales Stella's was doing. $2 million at say $50 an order is 40,000 orders per year or 110 per day! That's a pretty good bump in sales over the eat in crowd.
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Everybody is making more money, and skip played a huge role.
However, the delivery is the cheapest part of their business. They're a tech company first and foremost and pour everything into that.
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Originally Posted by OTA in Winnipeg
And apparently started at 11.2% and now it is 25/30% Wow, just seems like blatant greed never mind the "ancillary" charges that are charged to the restaurant at a by the minute rate if they're running late for any reason at all. I'd tell them to go fxxk themselves and I suspect after hearing all of this, more will.
Never used the service once.
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Greed? That's establishing the value of your service. Apparently, they were clearly undercharging at 11% because obviously people are willing to pay more. Now the market is telling them that 25-30% is too much.
BMW would sell you an $80,000 car for $100,000 if you're willing to pay it. That's normal. CEOs and operators who are charging 11% when they could get over 20% get fired. Obviously.
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Originally Posted by robertocarlos
Bogus argument. Why don't we all just get handed money to invest in the economy. I was going to write much worse things but thought better of it as I don't know you but I am sick of you government apologists.
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Except this is hardly the first time a business has been granted money in our city. Considering their rapid growth, it's been paid back seeeeeveral times over and the city has become a job destination.
I'm generally of the opinion that the government shouldn't meddle, but this is a good instance of it, much like the afforsable living tax abatement or TIF. The problem arises whether favouritism becomes involved, but the principle is fine. In this case the execution was better than say TIF, which got swallowed up by mostly a couple projects.
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Originally Posted by robertocarlos
Go get a fucking loan from the bank.
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Why get a loan when you could RAISE money?
Raising more money means either spending/investing more, or loaning less, either increasing opportunity and development or reducing exposure to financial risk.
Common sense.