-
The King Delivers
Posted on January 24th, 2012 9 comments
Every semester at least one of the student teams in my class proposes a business idea involving delivery; whether it’s restaurant food, groceries, laundry or alcohol, they believe it to be a good business model with profit potential. As an instructor of entrepreneurship, I encourage them to be more creative and try to think of a good business idea that stretches beyond their college bubble reality.Sure, delivery is needed by some consumers, those with limited ability to travel to the store or to a restaurant. That consumer niche’ would probably prefer to have more home delivery options. But is this really a necessary business model for the majority of consumers?
Recently, though, I’ve noticed signs in upscale restaurant windows newly offering a delivery service. And, Burger King just announced that they are piloting a test delivery program in the DC area with the goal of bringing it nationwide. So, now I’m beginning to re-think my stance on home delivery business models. Apparently we’ve become accustomed to not having to go out of the house to participate in purchasing consumer goods and services. Most products are available online and can be delivered to our door. So, of course the next generation believes this convenience should apply to food, alcohol and laundry. In addition to getting our pizza and Chinese food dropped on our doorstep, now the local Italian restaurant will bring us our dinner, too. Most of these foods travel well, and can be reheated in the microwave or eaten cold the next morning (cold pizza is my favorite and my daughter likes cold Chinese noodles). But, fries, burgers and shakes don’t usually taste very good unless eaten quickly after grabbing the bag through the drive up window. Burger King says they have developed a new thermal packaging which ensures the Whopper and french fries are delivered hot and fresh. You’ll have to pay a $2 delivery fee and probably tip the driver. A minimum order is between $8 and $10.
If Burger King really has figured out a way to bring their food hot and fresh right to our door, is this something we want? Isn’t the reason we eat at McDonald’s and Burger King because it’s so fast and convenient? If we had another choice, just as fast and convenient with better taste and nutritional value, would we choose that over a burger and fries? Time will tell if this delivery trend will prove to increase sales and be cost effective. Domino’s, whose business is 70% delivery, wishes them luck saying ”There is a reason that not all pizza places deliver: It isn’t easy.” Beth Carroll
9 responses to “The King Delivers”
-
Sarah Bargo January 25th, 2012 at 09:51
I believe that it will be difficult at first, but I think it could work. Places like Jimmy Johns already deliver sandwiches, why not burgers? I believe people like easy and convenient. When you throw burgers and fries in the mix, it’s a win-win situation. I can envision people sitting at their desk in their offices ordering burger and fries for lunch right now. Sure, it’s not healthy, but that hasn’t stopped the majority of our society thus far. I believe in the long run, it could pay off for Burger King because until other burger joints start delivering, they will have a monopoly in this particular market of delivery.
-
Caleb Hsu January 25th, 2012 at 13:48
I think it is a good idea but it has some downfalls. One of them that comes to my mind is how would they be able to deliver to all their customer in a certain period of time. Even if they were able to make it to all their customer but in the end all that matter is if the food still fresh and hot. Another downfall that comes to my mind would be how many workers to do they to employ just to make all the deliveries. In the end I think it is a really great idea that could take off only if they are able to solve the problems. such as having crispy fries and fresh burgers.
-
Kurt Lambright January 25th, 2012 at 14:51
I personally believe that from a business standpoint Burger King has invested in something that could work and prove profitable. As stated in the blog Americans have went to delivery type of world. Do I think this is the best thing for society? I do not think it is gonna be beneficial to society because it is making junk food that much more of a convenience. I am not saying that I believe Burger King is promoting obesity or not looking out for the common good, what I am saying is that it is sad that the American population has opened this market up to them. I actually believe that Burger King is making a smart move. There is that market out there I believe and I congratulate them for being the first to jump on the opportunity. As for the burgers and fries, I am sure they will find a way to get them to the destination no matter what it takes.
-
Muhamad Hayqal Suhairi January 25th, 2012 at 21:55
If they have developed the packaging technology in order to make sure “Whopper” is delivered hot and fresh, while french fries are delivered hot and crispy, why not do it?
If the location is right (as such Purdue campus, where people are busy) they must be a huge percentage of their customers who rather stay at home to eat burgers (because they are doing assignments and have no times to go out). They might as well attract McDonald’s customers, because many people go to McDonald to get fast service. Deliveries can be fast and efficient. (You can work on your assigments while waiting for your food to come at your door)I remember reading an article in WSJ saying that the sales of Burger King were declining due to the “harsh weather” in 2010. Delivery would keep customers buying their food even during cold weather
-
Noah Kramer January 26th, 2012 at 00:30
I really agree with Kurt on this one. The market is there, but it is only hurting the already “fat country”. I can’t count the number of times I’ve heard foreign exchange students talk about how our portions are so large at restaurants. Now we are making an unhealthy food choice more available to people? It just doesn’t seem like an ethically good thing to do. I guess bottom line is that people are going to eat what they want, even if it is unhealthy.
On another note, whenever I grab fast food I am on the go or short on money. I personally would never pay 8-10 bucks for BK for just myself. Also, I get fast food when I’m in a hurry. If i were going to wait for it to be delivered I’d get something a little higher in quality or nutritional value.
-
Nakul Rajaram January 26th, 2012 at 17:54
I honestly think if burger king decided to start delivering on Purdue’s campus it would be a great hit among us college students. I’m sure we all crave burgers while we are burning the midnight oil but most of us are just too lazy to step out and walk to get food.
However, I feel the $2 delivery charge and the $8 minimum order might not go down too well with cash strapped college students. -
Joel Gotshall January 30th, 2012 at 21:40
I don’t think Burger King will be very successful delivering. I think the reason people eat at Burger King is because it is cheap and quick. For Burger King to deliver, they won’t be cheap or quick. Say a meal on average is 5 to 6 dollars, then you pay a delivery of fee of 2 dollars, then you pay a dollar or two tip, now you are up around 9 or 10 dollars for a meal. I think i would rather go get a burrito and chips from Chipotle than wait 20 minutes for my Burger King to get to my door. I think when people order food, they want something of more quality than Burger King. Who knows though, I guess I could see college students ordering fast food to their dorms or apartments if they have no transportation and want fast food. I will be curious to see how delivery works out for Burger King.
-
Joseph Debald February 1st, 2012 at 22:42
I’m going to be blunt, I think this is a stupid idea. First off, I don’t care that they have some special delivery bag, fast food is meant to be eaten within a couple minutes. Second, the price thing is obviously a big deal. I could get much better quality food for $10 or a lot more at McDonalds. Third, our country is lazy already so lazy, now the person wouldn’t even have to leave their couch to get their fast food.
-
Spencer Slaton February 6th, 2012 at 18:24
I can only see two potential road blocks. The price and the speed. People like fast food because well….. it’s fast. However, who’s to say BK can’t figure out a business model that will allow them to deliver quickly. If they restrict how far each location delivers and prepares food quickly they could definitely get the food out quickly (Just like Jimmy Johns at Purdue).
And the delivery price is pretty high. At McDonalds I can get two more burgers for the price of BK’s delivery charge. In addition I have to spend at least $8….. What?! So no matter what I have to spend at least $10 (not to mention tax and tip). So this may work for customers that have a little extra money to spend (there aren’t too many of those people around now-a-days) or people who REALLY love BK (and they would probably be willing to walk/drive there anyway). As for the average customer, we’ll be headed to McDonalds.
Leave a reply
-
5 guests, 12 bots, 0 members
Max visitors today: 17 at 03:15 pm UTC
This month: 37 at 05-04-2012 03:50 am UTC
This year: 112 at 04-12-2012 02:09 am UTC
All time: 112 at 04-12-2012 02:09 am UTC



Counts
Latest Commentors
Most Comments
Most Commented Posts