On March 9, 2019, the Wall Street Journal published an article about online food shopping and delivery.
Question:
On March 9, 2019, the Wall Street Journal published an article about online food shopping and delivery. One statement was "The problem for Panera is that each delivery [has variable] costs [of] about $5.Including labor, gas, and packaging. Yet to avoid turning away customers, it continues to charge a flat delivery fee of $3 per order in most markets, which means they must sell a lot more per order to absorb those costs."
The article also states that, for grocery stores.
"It costs supermarkets an average of $10 [of new variable costs] an order to deliver food, but grocers only. Charge an average of $8 in delivery fees from customers.
Explain, using Cost Management, why companies continue to offer online ordering and delivery even when the costs of the service are greater than the fees charged to customers.