Eat24 Case Analysis Essay

Eat24 Review

Eat24 is a major restaurant delivery company that offers turnkey delivery services to its partners without any startup costs. The company markets the service to local customers, posts your menu online, takes orders, collects the payments and handles the administrative chores like insurance, vehicles maintenance and screening and hiring drivers. All you have to do is cook and package the food for delivery after receiving the verified order from Eat24. You pay a 12.5 percent commission, which is based on the order’s pretax total, in most cases.

Eat24 History and Profile

The Eat24 restaurant delivery service was organized on March 1, 2008, and the company was founded by principals Hain Erez and Nadav Sharon. What began as home-based

Does Eat24 Make Sense for Restaurants?

If you are a small restaurant and get or expect fewer than 40 deliveries per month, outsourcing deliveries to Eat24 is a sound financial decision. The startup costs and management headaches of handling deliveries in-house can take more time than the extra income is worth. Using Eat24 eliminates the overhead costs and management worries while giving your restaurant a marketing boost, expanded Internet presence and a bigger customer base.

However, you could face risks when competing with hundreds of other restaurants in your city. Eat24 has some of the most advanced technology and phone apps available, but your restaurant could easily suffer if it receives poor Yelp reviews or gets buried among hundreds of competitors. Technology is growing so fast that restaurants can now offer deliveries in numerous ways, and even delivering meals in-house is becoming less difficult, so restaurateurs need to assess the pros and cons of outsourcing.

Digital ordering is growing 300 percent faster than in-house dining, so restaurateurs must decide whether it makes long-term or short-term sense to get 16-percent smaller profits for an increasingly large percentage of their total

You won 't always control the delivery database or drivers. We recommend offering deliveries in-house if it 's doable. If you 're a small restaurant, the marketing benefits of outsourcing deliveries to Eat24 could help to mitigate the company 's fees.

Concluding Thoughts

Delivery services like Eat24 can expand your reach and delivery options, but you take a significant cut in profit on each order. If you choose to outsource, you might do better with a locally based service, so compare costs. You should also research what delivery customers think because their opinions can affect your restaurant 's reputation.

What We Like

We like the fact that even a small, neighborhood restaurant can offer deliveries, post their menus online and receive marketing benefits and greater media attention by outsourcing deliveries to Eat24. There are no setup costs, and the company does all the work except cooking and packing the food.

What We Don 't