{"id":3527,"date":"2018-02-16T09:47:17","date_gmt":"2018-02-16T17:47:17","guid":{"rendered":"http:\/\/sintelsystemspos.com\/?p=3527"},"modified":"2018-02-12T09:47:41","modified_gmt":"2018-02-12T17:47:41","slug":"difficult-delivery","status":"publish","type":"post","link":"https:\/\/sintelsystemspos.com\/ja\/difficult-delivery\/","title":{"rendered":"Difficult Delivery?"},"content":{"rendered":"

\u7533\u3057\u8a33\u3042\u308a\u307e\u305b\u3093\u3001\u3053\u306e\u30b3\u30f3\u30c6\u30f3\u30c4\u306f\u305f\u3060\u4eca\u3000English<\/a>\u3000\u306e\u307f\u3067\u3059\u3002 For the sake of viewer convenience, the content is shown below in the alternative language. You may click the link to switch the active language.<\/p>

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We’ve heard in this blog how crucial delivery<\/a> is in today’s on-demand market. Engaging with customers to serve them on their own terms can make the difference between success and failure.<\/p>\n

But with logistical difficulties, how can delivery even be viable? One answer is by streamlining the process with a single-source point of sale<\/a> solution. Sintel System’s online orders<\/a> are sent directly to the POS, where they can be sent to a specific kitchen display system<\/a>, e.g. delivery. Our complete systems even come with a driver’s delivery app, and by streamlining the entire process, your restaurant can quickly and efficiently serve your customers, their way.<\/p>\n

\"Difficult-Delivery-Online-Ordering-Kitchen-Display-Point-Sale-Sintel-System-POS\"<\/p>\n

Keep reading for more insights into restaurant delivery. To learn more about our restaurant POS systems, click here.<\/a><\/p>\n

As reported by Nation’s Restaurant News:<\/p>\n

Delivery remains the Rubik\u2019s Cube of service for most big restaurant brands outside of the pizza segment.<\/p>\n

And executives at the recent ICR Conference said they were working in various ways to solve the intricate puzzle.<\/p>\n

Faced with consumers demanding more convenience and growing options among third-party courier services, many big restaurant companies said they were struggling to make the economics work and even veteran pizza brands were assessing the delivery landscape.<\/p>\n

Domino\u2019s on delivery<\/strong><\/p>\n

Jeff Lawrence, chief financial officer at Ann Arbor, Mich.-based Domino\u2019s Inc., admitted that food delivery is a challenge.<\/p>\n

\u201cWe\u2019ve been what I guess is \u2018first-party delivery\u2019 for 57 years,\u201d Lawrence said. \u201cWe know a little bit about food delivery. \u2026 It is extraordinarily difficult. It\u2019s not an easy business to do well at scale.\u201d<\/p>\n

Third-party companies continue to eye the space, however.<\/p>\n

Noah Glass, CEO and founder of New York-based Olo, said he was taking an aggressive stance on delivery\u2019s role in the restaurant space. Olo provides white-label digital ordering and delivery technology to more than 200 restaurant brands at 40,000 locations.<\/p>\n

\u201cI think that delivery is a must-have,\u201d Glass said. \u201cIt\u2019s table stakes.\u201d<\/p>\n

<\/div>\n

Amazon on consumer expectations<\/strong><\/p>\n

Amazon with its same-day Prime delivery and other white-glove companies that offer in-home product setup has changed consumer expectations, he said.<\/p>\n

\u201cThere\u2019s a whole set of consumers who are what I call \u2018on-demand consumers,\u2019\u201d Glass explained. \u201cThey will not have you in their consideration set if you don\u2019t offer delivery to them. Brands have to engage, and to do so thoughtfully.\u201d<\/p>\n

<\/div>\n

Gus Lopez, general manager of Amazon Restaurants, added in a panel discussion that the online giant has found that speed and reliability determine customer attitudes toward brands as well.<\/p>\n

\u201cOne of the big commitments we have as a company in general is focusing on the customer experience,\u201d Lopez said.<\/p>\n

\u201cThis is a space that\u2019s prone to lots of errors. What we are trying to do is sit back and go through every possible thing that could go wrong and try to prevent that from happening.\u201d<\/p>\n

Amazon Restaurants aims to change the way people think about food delivery and to make it completely reliable, Lopez said. And through Amazon\u2019s data, it can help restaurants determine which foods travel best and fastest and also what containers might help quality.<\/p>\n

\u201cCustomers who get orders within 30 minutes from click time to delivery time vs. 50 minutes \u2014 the feedback is really, really different,\u201d Lopez said. \u201cWhen it\u2019s piping hot like you\u2019d get at the restaurant, it\u2019s through-the-roof positive in what they say about the experience.\u201d<\/p>\n

<\/div>\n

The cost of doing delivery business<\/strong><\/p>\n

Lawrence of Domino\u2019s said the economics of delivery will rule the day, especially outside the dense urban areas of New York and San Francisco.<\/p>\n

\u201cIf you go to Indianapolis and Denver and Kansas City and Milwaukee and Detroit, I\u2019m not sure they are going to pay the kind of consumer fees and menu prices,\u201d Lawrence said.<\/p>\n

Third-party charges of 20 percent to 30 percent would be too burdensome for many restaurants, he said, adding that there is a \u201cGrand Canyon-sized difference in economics\u201d for that an in-house delivery operations.<\/p>\n

But Nick Kenner, CEO and Founder of New York-based Just Salad, which has more than 30 locations, said delivery remains a growing part of his business.<\/p>\n

The company targets a 29-minute delivery time that uses courier services.<\/p>\n

\u201cWe have a delivery command center in New York off site that tracks every order,\u201d Kenner said.<\/p>\n

<\/div>\n

The delivery \u2018noise\u2019<\/strong><\/p>\n

But for larger brands, such as Darden Restaurants Inc.\u2019s 849-unit Olive Garden, enthusiasm is not as intense.<\/p>\n

Gene Lee, CEO of Orlando, Fla.-based Darden, said larger deliveries are profitable for the Italian brand and the food \u201ctravels very well.\u201d<\/p>\n

\u201cFor Olive Garden, we\u2019re doing delivery today for orders over $100. We think that\u2019s a very lucrative business,\u201d Lee said, who cautioned that not all restaurants should get on the delivery bandwagon.<\/p>\n

\u201cThere\u2019s a lot of noise around third-party delivery,\u201d he added. \u201cThis isn\u2019t the first time third-party delivery surge has come into our industry.\u201d<\/p>\n

Lee recalled companies like Takeout Taxi in the 1980s aimed to revolutionize the restaurant business<\/p>\n

\u201cAfter two years, it kind of faded away,\u201d Lee said. \u201cSo I\u2019ve seen this movie before. It may be a different ending, but we want to go slow.<\/p>\n

\u201cThere\u2019s no one that has developed as a third-party delivery as a clear winner that built scale and has technology that we want to partner with,\u201d he said. \u201cWe\u2019re testing doing it ourselves to see what the economics are.\u201d<\/p>\n

Lee added that Olive Garden was \u201cnot going to live with the economics that some of the players are asking for\u201d in the current market.<\/p>\n

\u201cAt the end of the day, we\u2019re testing and we\u2019re being diligent, but we\u2019re not willing to give up 20 to 25 percent just to get a sale,\u201d he said.<\/p>\n

Other brands are dipping toes into the delivery waters.<\/p>\n

Greenwood Village, Colo.-based Red Robin Gourmet Burgers Inc., in November began testing a delivery-only Red Robin Express unit in Chicago, taking over space from one its shuttered Burger Works locations.<\/p>\n

\u201cWe know we have future that requires us to give guests what they want, when they want it, where they want and how they want it,\u201d Denny Marie Post, Red Robin CEO, told ICR attendees.<\/p>\n

Russell Bendel, CEO and president of Irvine, Calif.-based Habit Restaurants Inc., said his burger chain was looking at delivery as well.<\/p>\n

\u201cWe\u2019ve met with all of the third-party delivery companies,\u201d Bendel said. \u201cPeople want convenience, but we\u2019re not willing to give 30-plus percent of proceeds to a third-party delivery company.\u201d<\/p>\n

<\/div>\n

The 209-unit brand plans to do a delivery test in the first quarter, he said. \u201cSome of that cost of delivery has to be borne by the consumer,\u201d he said, \u201cnot totally by the restaurant.\u201d<\/p>\n

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