Eat In & Take Away

[cmsoulbrother]

Can I just ask; if you are already giving 10% discount to the delivery company (which you continue to do), but in addition throw the offer of 10% discount open to personal callers - do you think that would have a negative or positive affect on your business?

These things can be tough to predict, but for my situation, I don't think it would be the right choice. It sort of depends on your margins I think. If you're a restaurant that's running with very low food costs and then the percentage profit loss of a 10% discount is much lower than a place that's running on higher food costs. We've always tried to give people really good value and a pretty hearty meal, which is one reason I think we've managed to stick around for a number of years. As a consequence of this, however, we run with pretty high food costs and much smaller total margin, and so I think for us it would be the wrong choice.

as a fictional example to illustrate:

• restaurant A sells with a 25% food cost and 25% fixed costs. This restaurant gives a 10% discount off the sale price and loses 20% of their total profit off the sale.
• Restaurant B runs with a 55% food cost and 25% fixed costs. This restaurant gives a 10% discount off the sale price and loses 50% of their total profits off the sale.

Restaurant B would have to double their take-out business before they would make an equal amount if giving a 10% discount - But in fact by doubling their business their fixed costs might even go up (need an extra cook or something) and so a doubling of sales might still result in a net loss of profits.

Since MOW offers additional sales that wouldn't be available otherwise, unlike personal take-ways, even a pretty substantial reduction in profits (although tough) still makes good financial sense.

Thanks.

Why then do restaurants want their names on the delivery company list in the first place.....altruism?

Wouldn't it be more cost effective for them not to?

I'm still missing, if A gets 10% discount already, what's the problem with B getting the same?

Because A (the customer who wants a delivery) isn't even a possible customer unless you give the 10% - it's the cost of getting to that customer. Customer B, is a customer who is coming to you, so you don't have to pay to get to them and the only way you can make more money by giving a discount to this customer is if that discount results in a substantial increase in business. I realize that it doesn't seem quite 'fair' exactly but I don't think that many restaurants are going to be willing to take an action that they feel will result in a loss of profits (charity and the like aside). I know this sounds kind of cold but there's a reason why restaurants go out of business so often, so those that want to stay at it have to be pretty careful with their pennies.

Anyway - this is just my take on things...others may feel differently

[uptheos]

Can I just ask; if you are already giving 10% discount to the delivery company (which you continue to do), but in addition throw the offer of 10% discount open to personal callers - do you think that would have a negative or positive affect on your business?

These things can be tough to predict, but for my situation, I don't think it would be the right choice. It sort of depends on your margins I think. If you're a restaurant that's running with very low food costs and then the percentage profit loss of a 10% discount is much lower than a place that's running on higher food costs. We've always tried to give people really good value and a pretty hearty meal, which is one reason I think we've managed to stick around for a number of years. As a consequence of this, however, we run with pretty high food costs and much smaller total margin, and so I think for us it would be the wrong choice.

as a fictional example to illustrate:

• restaurant A sells with a 25% food cost and 25% fixed costs. This restaurant gives a 10% discount off the sale price and loses 20% of their total profit off the sale.
• Restaurant B runs with a 55% food cost and 25% fixed costs. This restaurant gives a 10% discount off the sale price and loses 50% of their total profits off the sale.

Restaurant B would have to double their take-out business before they would make an equal amount if giving a 10% discount - But in fact by doubling their business their fixed costs might even go up (need an extra cook or something) and so a doubling of sales might still result in a net loss of profits.

Since MOW offers additional sales that wouldn't be available otherwise, unlike personal take-ways, even a pretty substantial reduction in profits (although tough) still makes good financial sense.

Thanks.

Why then do restaurants want their names on the delivery company list in the first place.....altruism?

Wouldn't it be more cost effective for them not to?

I'm still missing, if A gets 10% discount already, what's the problem with B getting the same?

Because A (the customer who wants a delivery) isn't even a possible customer unless you give the 10% - it's the cost of getting to that customer. Customer B, is a customer who is coming to you, so you don't have to pay to get to them and the only way you can make more money by giving a discount to this customer is if that discount results in a substantial increase in business. I realize that it doesn't seem quite 'fair' exactly but I don't think that many restaurants are going to be willing to take an action that they feel will result in a loss of profits (charity and the like aside). I know this sounds kind of cold but there's a reason why restaurants go out of business so often, so those that want to stay at it have to be pretty careful with their pennies.

Anyway - this is just my take on things...others may feel differently

Thanks again for being able to put it in a way that makes sense, without the need to revert to calling people cheap charlies.

I sort of knew that if I pursued it long enough someone would arrive with an answer that is credible.

If you have a restaurant business - good luck.

[cmsoulbrother]

Thanks again for being able to put it in a way that makes sense, without the need to revert to calling people cheap charlies.

I sort of knew that if I pursued it long enough someone would arrive with an answer that is credible.

If you have a restaurant business - good luck.

You are very welcome - and thank you the good luck wishes

[uptheos]

Thanks again for being able to put it in a way that makes sense, without the need to revert to calling people cheap charlies.

I sort of knew that if I pursued it long enough someone would arrive with an answer that is credible.

If you have a restaurant business - good luck.

You are very welcome - and thank you the good luck wishes

Hope to see you at your restaurant, I won't ask for a discount and I will leave a tip.

This is Cheap Charlie signing off from this thread.

[getgoin]

I guess that I was selectively reading this thread because I missed a few things.

One thing I have to say is the The Duke's has never had it's own delivery service but we have on numerous occasions delivered to someone who called direct. This has not happened in a long time because we just do not have the staffing available. Now, if someone calls us direct, we usually call MOW. Many times but not 100% of the time we pick up the 70 Baht delivery charge. I say not 100% of the time because it would be something that I would have to authorize. This goes back to the squeaky wheel squeaking at the right place and the right time. So, sorry about that.

Next, is the fact that The Duke's does not pay a flat % of the bill total to MOW. We pay a set amount and because we do a lot of deliveries it gets averaged out at about 8-9-10% over the course of a month. Certainly we would rather see large orders delivered.

Thirdly, I'm game for an experiment. Order out directly and pick up your purchase and mention the "ThaiVisa take out discount" for October and you will get a 10% discount. See what I mean about the squeaky wheel.

I forgot to mention we will honor this at both locations.

[ChiangMai2]

Thanks again for being able to put it in a way that makes sense, without the need to revert to calling people cheap charlies.

I sort of knew that if I pursued it long enough someone would arrive with an answer that is credible.

If you have a restaurant business - good luck.

You are very welcome - and thank you the good luck wishes

Hope to see you at your restaurant, I won't ask for a discount and I will leave a tip.

This is Cheap Charlie signing off from this thread.

I think it's out of your price range columbo

[uptheos]

Thanks again for being able to put it in a way that makes sense, without the need to revert to calling people cheap charlies.

I sort of knew that if I pursued it long enough someone would arrive with an answer that is credible.

If you have a restaurant business - good luck.

You are very welcome - and thank you the good luck wishes

Hope to see you at your restaurant, I won't ask for a discount and I will leave a tip.

This is Cheap Charlie signing off from this thread.

I think it's out of your price range columbo

Nice try.

[uptheos]

I guess that I was selectively reading this thread because I missed a few things.

One thing I have to say is the The Duke's has never had it's own delivery service but we have on numerous occasions delivered to someone who called direct. This has not happened in a long time because we just do not have the staffing available. Now, if someone calls us direct, we usually call MOW. Many times but not 100% of the time we pick up the 70 Baht delivery charge. I say not 100% of the time because it would be something that I would have to authorize. This goes back to the squeaky wheel squeaking at the right place and the right time. So, sorry about that.

Next, is the fact that The Duke's does not pay a flat % of the bill total to MOW. We pay a set amount and because we do a lot of deliveries it gets averaged out at about 8-9-10% over the course of a month. Certainly we would rather see large orders delivered.

Thirdly, I'm game for an experiment. Order out directly and pick up your purchase and mention the "ThaiVisa take out discount" for October and you will get a 10% discount. See what I mean about the squeaky wheel.

I forgot to mention we will honor this at both locations.

I just had to come back - getgoin, I really didn't realise you are Dukes. Yes I've eaten there and no complaints.

It's really very nice to see that you are game for an experiment, but somehow I feel it will be a flop. The posters here prefer to pay full price plus delivery, even if they're in the locale. They would be embarrassed to save over 100 Baht on a pizza.

[jayjay0]

You've got to remember that if it's a full service restaurant and you're ordering to take out, the owner still has to pay the overhead regardless so there's no saving to them unless the place is full and your business would be lost because you'd go elsewhere. Think how long a business could stay afloat if it was set up for 50 covers but permanently empty and only served take-outs at a discount. Also carry outs mean no add on sales such as drinks or impulse deserts and your staff get less tips so they're harder to retain.

I fully understand your point, but it seems to me that in the present economic climate, restaurants are having a problem to stay afloat anyway and I don't see anyone making an effort to stimulate business. They are just opening and closing, moaning about how bad it is and hoping that people will suddenly start flocking in. I think there's an opportunity for restaurants to at least move some freezer stock, but no doubt the owners have adopted the 'face' thing and I wouldn't be surprised to see their prices go up instead of down.

Well said Greenside

As far as changing prices just because the economy is slow goes would you then be saying raise the prices when it is good.

So far I have only seen one poster claim that MOW takes 25% of the order. And then ads a 70 baht charge. Not sure if he also claimed that they only paid the driver 20 baht. Sounds kind of out of line to me. I could be wrong but I don't think so.

[jayjay0]

OK, so how about the post earlier that stated MOW receive a discount from the restaurant.........wouldn't a discount to a personal caller be the same thing? If restaurants figure out there would be a net loss, surely they wouldn't operate a takeaway service with anyone?

The end buyer is not getting the discount. In fact, he's paying a premium—for the delivery. The restaurant achieves a certain balance: getting orders from those who really don't want to leave home without actively (by way of discounts) herding customers away from eating at the restaurant where they probably would spend more as well as tip serving staff.

As a consumer, I'd love to get a discount for take-out, but I think most restaurants have concluded it's not in their interest and I'm just saying that I understand maybe why.

It would certainly be interesting if a high-profile place like The Dukes conducted a limited-time experiment on your proposal. They wouldn't have to release the results of the experiment. We (and competitors) would know one way or the other by whether or not they continued the practice after the experiment period.

Personally I like Dukes. But if I had to have a discount I would be looking for a cheaper place.

[jayjay0]

I am amazed Dominos are not in Thailand-

There were, but did not make it.

Dominos is not even in the ball park they are not a come in sit down eat restaurant. They are delivery and take out. In Canada they gave a discount if it took over 30 minutes to deliver it. If you pick up they save the cost of delivery and can afford to give a discount. Being as they have no other overhead to pay for.

[uptheos]

OK, so how about the post earlier that stated MOW receive a discount from the restaurant.........wouldn't a discount to a personal caller be the same thing? If restaurants figure out there would be a net loss, surely they wouldn't operate a takeaway service with anyone?

The end buyer is not getting the discount. In fact, he's paying a premium—for the delivery. The restaurant achieves a certain balance: getting orders from those who really don't want to leave home without actively (by way of discounts) herding customers away from eating at the restaurant where they probably would spend more as well as tip serving staff.

As a consumer, I'd love to get a discount for take-out, but I think most restaurants have concluded it's not in their interest and I'm just saying that I understand maybe why.

It would certainly be interesting if a high-profile place like The Dukes conducted a limited-time experiment on your proposal. They wouldn't have to release the results of the experiment. We (and competitors) would know one way or the other by whether or not they continued the practice after the experiment period.

Personally I like Dukes. But if I had to have a discount I would be looking for a cheaper place.

You don't have to have a discount anywhere, no-one's twisting your arm. And if you do get a discount, maybe you could pass your savings on to the server.

I'm sure that there are more than enough restaurants in Chiang Mai that don't give a discount or provide 'specials' - just look for those giving discounts and putting on specials and just avoid going there, in case you die from embarrassment.