Revenue Management of Restaurant Delivery
Off-premise dining (including delivery) had been growing in popularity pre-Covid and the pandemic has sped up its adoption. While delivery is great for consumers, it's not always so great for restaurant operators.
I've been thinking a lot about restaurant delivery the past few years (hey, even before Covid!) and have of course been thinking about how we can apply revenue management (RM) principles to it so that restaurants can increase their profitability.
Jonathan Beard and I wrote a paper describing a strategic approach to RM that we've used for restaurants and a variety of other industries. The more I thought about this, the more I thought that this might be a good way to approach RM for restaurant delivery. I've put together a short video on this. I hope you find it of value! Would love to hear your thoughts.