Document Type

Conference Proceeding

Publication Date

10-2018

Journal Title or Book Title

Northeast Business and Economics Association (NBEA) 2018

Version

Publisher's PDF

Publisher's Statement

PUBLISHED BY THE NORTHEAST BUSINESS & ECONOMICS ASSOCIATION © 2018 The Northeast Business & Economics Association reserves the right to publish the Proceedings in both print and electronic formats. The individual authors retain the copyright over their own articles.

Abstract

Large chain fast food restaurants, also known as quick service restaurant (QSR) are known for price and convenience. However, one critical factor that is lacking for many QSR restaurants is customer delivery. For restaurants that offer delivery, the increased availability to the consumer can offer a substantial competitive edge. With the advent of third party delivery, those restaurants which heretofore were not able to deliver, now have the opportunity to partner with third party delivery providers. In a similar war, restaurants that simply lack an online presence can look to order aggregators to fill their needs. The size and allocation (between the customer, the restaurant, and the delivery provider) of delivery fees are major factors impacting the viabil ity and success of these partnerships. Due to the low average price point in the QSR business, delivery charges can have a significant impact on margins. The purpose of our research is to explore the economics of delivery fee determination and allocation, paying close attention to scalability and efficiency. We will also attempt to discern the maximum delivery fee consumers would be willing to absorb given QSR’s low average ticket price.

Related Pillar(s)

Study

Comments

This is the work of faculty member Robert Goch and business student Jeremiah Titone.

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