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As a person that owns restaurants I’ll chime in here. My restaurants are all full service sit down dining. Not fast food.

First I would never ever use delivery services as they take 30% of the revenue. I’m not working for them. Second, to go orders are a pain in the $&#&#, slows down your kitchen and many dishes do not travel well.

So I understand the need for fast casual and fast food to do delivery. The misconception here is that it was the pandemic that launched to go and especially delivery. It was not. Yes it increased delivery and to go by a multiple of two or three times in some cases, and as openings are being rolled out and more people are choosing to dine in, sales for to go and delivery have to be falling.

That said, the food delivery segment was growing rapidly pre pandemic. One example I can speak of is a smaller fast casual chain called Tender Greens. I know for fact that by December of 2019 their food delivery business was already up to 60 to 65% of sales. They were already deep into transitioning their business model.
Look at Chipotle as well. The new CEO made it his number one goal when he cam on board pre pandemic to streamline their delivery business. He saw what was happening. So what did he see? What was the trend?
Millennials had discovered food delivery and embraced the concept.

The other phenomenon from the delivery movement are ghost kitchens that are popping up all over the place in every city in the nation. Small kitchen spaces, sometimes shared, doing delivery only. There’s one near me that has 30 concepts working out of the same large community kitchen space. I have an independent one a block away in a 300sq foot space making gourmet pizza that has a side alley door, amd all you see are food delivery vehicles pulling into the alley to pick up and deliver pizzas. This is the new reality in fast casual dining. Less rental space, less employees, streamline delivery only. Lower all your costs, including workers comp, payroll, rent, healthcare costs. Again, this is where the restaurant industry is heading and it’s fasted growing segment by far.

Why have to leave your dwelling, get in a car, look for parking, take a long walk, drive back to hour place, when for 5 bucks you can have it delivered. Put an order in on your phone app and go on with whatever you were doing and food shows up at your door. Yea the older generation might not get it, but the younger generation became addicted to it and fast.

So food delivery is here to stay. OLO will continue to do business. I know of one restaurateur here in Los Angeles that already has a private company with a competing product and they are signing big chains as well. So there is competition.
Yes the comps might be tough over the next 6 to 9 months, but this is a real business that fills a need as long as the younger generations have cell phones to order from, and I don’t think that demographic is ever going away.

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