First Washington Realty

The New Restaurant Reality

by D. Wright Sigmund posted at 5/16/18 3:49 PM

Delivery and off premises consumption may be the biggest disruptions to the restaurant industry since the advent of the fast casual dining segment. While this presents an excellent opportunity for revenue growth, it is still expensive for restaurants to execute on delivery. Third party providers such as Seamless and UberEats simplify the process of taking and distributing orders but the fee structure generates only modest incremental profitability.  

In addition restaurants are starting to change design in order to have two lines in the back of house to accommodate both the demand of traditional on premises diners and the delivery/pick up business. Some restaurants will start to have “flex space” that can pivot between different concepts for both on premises and away.  

It is estimated that off premises will account for approximately 25-30% of gross revenue for  restaurants within 2-3 years.

How are you adapting to this trend?