I know this is one of those sins right next to pre-fab dough balls and not being open 7-days a week, but just in case there are some rebels out there I thought I would ask.
I also want to thank the group for all the response to my other posts. I think I’ve been brought back up to speed in a very short time.
I assume you are talking about not doing delivery? I don’t deliver. We do have a dining room for about 30. I have checked into delivery every year but can not bring myself to pay 5000-8000 for insurance for delivery! My competitor in town delivers and we are only about $200 off his record nights equal on average(have a couple people that work there and give me info). So to hire drivers and pay insurance for another $5000 not worth it in my mind plus all the extra work of checking driving records, risk of lawsuit if they get in wreck, etc.
The location I am looking at does not have tables, just carry out and the option for delivery. My last shop I did carry out and delivery and delivery was by far the least enjoyable aspect of the operation. I’m sure I don’t have to go into the range of reasons for this as I’m sure everyone is well up to speed.
Since this time around I will not be part of a big chain I was just checking to see if it was a viable option to survive on carry out only.
Enjoyable really doesn’t enter into it froma business standpoint. Can your business be profitable without doing delivery. If you can move the volume you need to move to make you break even (see business plan) costs and enough for your profits, then go for it. Revenue streams and cash flow are king . . . if you can make enough of each only on carry out, then skip delivery. I suspect that scant few places survive simply on take out. There are locations that will thrive, but that won’t so much be the norm.
I think you could start that way but in my market I cant imagine not having delivery, in a town close to me there is one guy who does that, its a very small business and mostly just extra income for himself.
A very well run shop in my home town does just carryout no delivery/dine in! They do very well and have been there for about 20 years had 2 of the big 3 chains move in (both of those delivered) and now just have the one biggy left in a gas station. The lines on friday are out the door just like they were 19 years ago. So it can be done! The employees some of which have been there since open say it is very noce not cleaning tables or worrying about delivery issues.
After reading some back posts on this topic (thanks steve :lol: ) and from my own past experiences with delivery operations it is headache most owner/operators would drop in a heartbeat.
Since this time around I have a choice I do not think I will be delivering, but instead focus on offers to make pick up more appealing and of course quality.
This is in large part to LC who has never delivered (except for a brief time until they regained sanity) and is making a strong come back with pick up only (at least in my area).
With gas prices, insurance for drivers, drivers, how to pay drivers, what to charge, and just the general hassle (most of my complaints/headaches came from orders that were delivered) I think it’s a good time for me to test the waters on non-delivery.
Thanks for all the feedback this forum is a great place to learn and to bounce ideas around in a non-competitive atmosphere.