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CHAPTER 13

IS FOOD DELIVERY A PROFITABLE BUSINESS?

Introducing delivery into the classic catering business model is a transformation requiring prior quantitative and qualitative analysis. This analysis involves reviewing the type of client being targeted, the value proposition, a thorough examination of the organisation and operation of the delivery activity, and of the cost and revenue structures (margins).

 

Virtual restaurants, dedicated primarily to food delivery, cannot be governed by the same indicators as conventional restaurants. In this chapter, we explore the necessary steps to ensure that the restauranteur’s food delivery company is profitable: looking at what initial investment is required, examining the sales plan, the recurring expenses that will be incurred and the contribution margin that is to be expected.