Do you order items from Amazon? If so, you are likely to order food delivery from restaurants. With Amazon merchandise, you will know when the order is fulfilled and a likely date and part of day when it will be delivered. With delivery services from restaurants, you can expect not only order tracking but delivery times to the quarter hour. Is this a disruption or will it be the destruction of the restaurant business?

Home Delivery as Destruction

Many restaurants need to offer home delivery to compete. They find that they need to associate with DoorDash, Uber Eats and the like, for mobile delivery and loyalty. The average commission rate that private restaurant chains pay third-party providers of digital ordering and delivery is 25%. That means that third-party transactions need margins of roughly 45% in order to be profitable. In the alternative, you could sell a lot more food at very low margins.

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