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Thursday, May 03, 2007

More on Take-Out and Delivery Issue

I received an email from Wayne regarding my post on Take-Out service. He has a great point regarding delivery costs. When the food is not picked up by the customer, delivery costs (which can be substantial) need to added to my break even list.

I have a quick question for you after reading your
monthly blog. I know you mentioned "as long as your take-out sales
cover the costs of food, production, packaging and order costs, your
overall profit will improve" but I question when one uses a delivery
service which charges 30% for pick-up and delivery and you add costs
(food & packaging) and labor charges to possibly break even.

How would your overall profit increase unless those
individuals return to dine in your restaurant where the profitability is
possibly higher due to dessert and beverage sales or those individuals
by word of mouth recommend your restaurant?

Thanks for your time.


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