Restaurants have been struggling during the pandemic. Because of the restrictions on indoor dining, many restaurants...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Restaurants have been struggling during the pandemic. Because of the restrictions on indoor dining, many restaurants shift the focus to take-outs and deliveries for surviving the economic hardship. Therefore, food delivery services (Grubhub, UberEats, Doordash, and Postmates) are booming since last year. The food delivery services portrait themselves as saviors and urge consumers to support local restaurants by using their apps. However, restaurant owners have been criticizing these delivery services for the hefty fees they charge. Instead of being saved, many restaurants feel that they are held captive and exploited by the delivery service providers. Please learn more about the controversies from the additional readings, and discuss the following questions: 1. Are food delivery services helping or taking advantage of local restaurants? 2. From the perspective of local restaurant owners, what are the pros and cons of using third-party delivery services? 3. Any suggestions for local restaurant owners? Restaurants have been struggling during the pandemic. Because of the restrictions on indoor dining, many restaurants shift the focus to take-outs and deliveries for surviving the economic hardship. Therefore, food delivery services (Grubhub, UberEats, Doordash, and Postmates) are booming since last year. The food delivery services portrait themselves as saviors and urge consumers to support local restaurants by using their apps. However, restaurant owners have been criticizing these delivery services for the hefty fees they charge. Instead of being saved, many restaurants feel that they are held captive and exploited by the delivery service providers. Please learn more about the controversies from the additional readings, and discuss the following questions: 1. Are food delivery services helping or taking advantage of local restaurants? 2. From the perspective of local restaurant owners, what are the pros and cons of using third-party delivery services? 3. Any suggestions for local restaurant owners?
Expert Answer:
Answer rating: 100% (QA)
1 Are meal delivery services assisting or exploiting local restaurants The impact of meal delivery services on local eateries varies according to a variety of circumstances While meal delivery services allow eateries to access a larger client base and stay in business during the epidemic there are worries regarding the costs and compensation structures that these firms impose Some say that the fees levied by delivery companies might be rather exorbitant eating into eateries already thin profit margins This has resulted in charges of exploitation and the perception that delivery firms are taking advantage of local businesses during a difficult time 2 What are the benefits and drawbacks of employing thirdparty delivery services as seen by local restaurant owners Pros Enhanced visibility and access to a broader consumer base Thirdparty delivery services expose the restaurant to people who might not have discovered it otherwise potentially increasing revenue Customer convenience Customers who prefer to order food from the comfort of their own homes will find delivery services to be a convenient choice Outsourcing delivery logistics Restaurants may avoid the expenses and hassles of operating their own delivery fleet by employing thirdparty services Cons Fees and commissions Many delivery systems charge significant fees and commissions reducing restaurant revenues This may be a substantial hardship particularly for small independent establishments Lack of control over the customer experience When restaurants rely on thirdparty services they have less control over the delivery process and the level of service they give to clients Delivery services might result in a loss of direct client engagement which is a crucial component of running a restaurant and creating customer loyalty 3 Advice for local restaurant owners Consider the following alternatives Consider offering inhouse delivery or curbside pickup to lessen your dependency on thirdparty delivery services and the expenses that come with them Negotiate costs and terms Talk to delivery service ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
Students also viewed these general management questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Estimate the cash value of a life insurance policy as of December 31, 2016 based on the following information: Cash value as of January 2016 $90,000 Total premium during the year $ 8,000 Term life...
-
Velocity and temperature profiles for laminar flow in a tube of radius ro = 10 mm have the form u (r) = 0.1 [1 (r/r o ) 2 ] T(r) = 344.8 + 75.0(r/r o )2 18.8(r/r o ) 4 with units of m/s and K....
-
Watch the videos called How to Kickoff a Project and Starting a New Project from www.projectmanager.com. Also, search for examples of good and bad kickoff meetings. Summarize key points in these...
-
What reasons can you give in support of, and against, the development of separate financial accounting guidelines and standards that reflect the financial consequences of environmental issues?
-
Concur Technologies, Inc., is a large expense-management company located in Redmond, Washington. The Wall Street Journal asked Concur to examine the data from 8.3 million expense reports to provide...
-
IntFinMgt 8 1. Explain how a MNC could hedge net receivables in euros with futures contracts. 2. Explain how a MNC could hedge net payables in Japanese yen with futures contracts. 3. Explain how a...
-
Provide a brief evaluation of the different types of machine learning methods that can be used to improve the recommendation system, and ultimately, the output generated by the algorithm. In your...
-
NBA Inc. is engaged in the business of manufacturing basket balls. The company employees actual costing system. The company uses a single account for direct and indirect materials. The company...
-
What social change helped provide ample opportunities for Beethoven to give performances of his music?
-
Given a contribution margin ratio of 0 . 5 5 and fixed costs of $ 2 , 6 0 0 ; the break - even point in dollars is ?
-
Last year, Amy Hill purchased a $1000 Washington Utilities corporate bond with an annual interest rate of 7%. The bond's current market price is $1090. Calculate the following. If necessary, round...
-
Arjun works for a software company and must present on updates on his company's products and vendors and software users meetings. He feels that his topic is not particularly important and he wishes...
-
Find three sources for gender stereotypes, national stereotypes, and skill stereotypes.?
-
You are given an N-sided die, along with a corresponding Boolean mask vector, is_bad_side (i.e., a vector of ones and zeros). You can assume that 1 < N 30, and the vector is_bad_side is also of size...
-
Time Solutions, Inc. is an employment services firm that places both temporary and permanent workers with a variety of clients. Temporary placements account for 70% of Time Solutions' revenue;...
-
How is the eventual salvage value of new equipment being purchased as part of a capital project treated when calculating the simple rate of return?
-
In a CVP graph, what is the impact on the break-even level of sales if the slope of the total revenue line gets steeper, assuming no change to the total expense line? What is the impact on the...
-
Davis Division uses three secret materialsA, B, and Cto produce its product, called Corzon. The materials are mixed in the following standard proportions to yield 100 litres of Corzon: It requires 50...
-
The auditor's report may be addressed to any of the following except the client's a. Stockholders. b. Board of directors. c. Chief executive officer. d. Partners.
-
The standard audit report includes all of the following except a (an) a. Opinion paragraph. b. Scope paragraph. c. Explanatory paragraph. d. Opening paragraph.
-
The existence of audit risk is recognized by the statement in the auditor's standard report that the a. Auditor is responsible for expressing an opinion on the financial statements, which are the...
Study smarter with the SolutionInn App