So What Club

Restaurants and food service

A delivery order compared with a dine-in order in India

The prompt

An illustrative burger restaurant in India sells an average order of INR 400. Food costs 30 percent of the menu price. On a delivery platform it pays a 25 percent commission and 2 percent in payment and platform fees, plus INR 20 of packaging. What does each delivery order contribute before labour and rent, and what if the restaurant lists delivery prices 10 percent higher?

Before you reveal anything, plan your own structure and first move on paper. Then reveal one part at a time and compare.

Clarifying questions, with the interviewer's answers

Next case

Read the next worked case the same way: plan your own answer first, then reveal one part at a time.

Next case: How a franchisor and a franchisee split the moneyThe lesson: Restaurant unit economics: turns, delivery, and franchising
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