The RDS Industry Overview

The general concept of the multiple-restaurant delivery industry is fairly simple: Pickup meals from local restaurants and deliver them to your customers. However, as they say, the devil is in the details, and we will give you a brief glimpse of what is involved:

Generally, you sign up various local restaurants that will allow you to purchase meals from them at a discount. Then you hire drivers to perform the deliveries. The radio-dispacthed drivers pick up the food from the restaurant, deliver it to the customer, and collect the money. You then checkout the drivers, collect the money from them, and pay the restaurant for the food, less your discount.

You solicit your own customers through various marketing methods, and sell the meals to the customers along with a delivery fee. That means that you make money off each order in two ways: (1) Your delivery fee, and (2) the discount the restaurant gives you. Out of your profit, you must pay your drivers, CSR's, marketing expenses, and general overhead.

The kep to profitibility in our industry is genertaing either a large volumn of orders, or maintaining a high average ticket amount per order. (Or both if you can do it!)

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