Is there a business reason why McDonalds (Ireland) does not deliver?

Pablo Sanchez

Apologies if this should be somewhere else.

I have often wondered why McDonalds do not deliver, looking at most other food/takeaway sectors they will more than likely have a delivery service but for some reason McDonalds (to the best of my knowledge) do not offer this in Ireland at least.

Anecdotally at least i know that they deliver in some places in the US, does Ireland have a different market structure that does not merit it?

Thanks guys.

ted1

Food gets cold very fast. High volume low profit doesn't make it feasabile

CatFromHue

my local chipper delivers. ive gotten it delivered a few times but the quality of what you get isnt great.

i'd never get it delivered again.

antoinolachtnai

Doing delivery really well is difficult. I'd guess that they are focusing on what they do at core, which is take-away and eat-in.

They do delivery in the far east, according to Google, and it would be interesting to find out why.

creative100

antoinolachtnai wrote: »

Doing delivery really well is difficult. I'd guess that they are focusing on what they do at core, which is take-away and eat-in.

They do delivery in the far east, according to Google, and it would be interesting to find out why.

Wild guess but it is because of the climate they do it in the Far East?

Pablo Sanchez

The temperature dosnt seem to affect the likes of Dominos, dont think that could be the reason alone.

RATM

There was a guy on Facebook last month who set up a McD's delivery service in Dublin city center. The genius went and blantantly used McD's logo on his website/ Facebook page and then got a blaze of publicity when they threatened to sue him. He promptly took the logo down but by then they had done all the advertising for him

So I guess he cracked the temperature issue. But I'm guessing the biggest limitation is both the quality of food after 15minutes and also the cost of petrol- even if you charged €1.50 a delivery it would probably have cost at least 50c in fuel to deliver and then return to the nearest McDs for the next order. So you end up working for €1 a delivery which is probably going to take 20 minutes return. So now you're working for €3 an hour and are absolutely dependent on tips to bring you up past minimum wage. But some people won't tip because they've already paid for delivery. Even if they do it'll most likely be a €1 on top of the €1 profit. You certainly won't become a millionaire out of it, thats for sure...

chillywilly

A little bit of light reading on the subject:

http://www.boards.ie/vbulletin/showthread.php?t=2056251390

Matt Bauer

In China at least McDonald's offer a fantastic delivery service, so I am following this thread with internet. It's obviously possible to do it right – I have seen that first hand.

I wonder what the reasons for not doing it here are. Maybe even Dublin is just too small?

ted1

Ok Matt,
Minimum wage in Ireland is about 8.65
tax, insurance and pertol is pretty dear
traffic is bad.

if they make a delivery 6 minutes away , thats 12 minutes round trip
so the wage cost is approx 1.73 + PRSI etc.
the cost for transport could be the same.

so your looking at over 3 euros. McDonalds food gets cold fast. you'll be delivering food below the standard.

with the euro saver menu there is not much profit. so it snot feasible.

Matt Bauer

Traffic is bad in China as well, and petrol costs nearly the same as it does here. While wages there are a lot lower than here, McDonald's prices are also a lot lower over there.

Not saying your post doesn't add up, but there must be other reasons as well. I would hazard a guess it's lot of little things that add up, rather than one big issue that is stopping them.

Matt Bauer

ted1 wrote: »

with the euro saver menu there is not much profit. so it snot feasible.

That could be adressed by making the euro saver menu something that's available in-store only, or setting a minimum delivery amount to stop customers from just ordering a €1 burger.

michelledoh

Matt Bauer wrote: »

That could be adressed by making the euro saver menu something that's available in-store only, or setting a minimum delivery amount to stop customers from just ordering a €1 burger.

Wasn't there a fake Facebook group on this recently? Or was it lads who were not affiliated to McDs that were doing it illegally?

Axwell

michelledoh wrote: »

Wasn't there a fake Facebook group on this recently? Or was it lads who were not affiliated to McDs that were doing it illegally?

Read posts 7 and 8..

Pablo Sanchez

ted1 wrote: »

Ok Matt,
Minimum wage in Ireland is about 8.65
tax, insurance and pertol is pretty dear
traffic is bad.

if they make a delivery 6 minutes away , thats 12 minutes round trip
so the wage cost is approx 1.73 + PRSI etc.
the cost for transport could be the same.

so your looking at over 3 euros. McDonalds food gets cold fast. you'll be delivering food below the standard.

with the euro saver menu there is not much profit. so it snot feasible.

But are you not forgetting that Dominos etc have all the same issues as outlined above. Simply implementing a minimum spend policy and a delivery charge would sort all that out.

TheCostumeShop.ie: Ronan

The above assumes 100% usage, which is never the case. People want dinner at dinner time and then you have over demand and poor performance. Then at quieter times there is lower demand and under utilization.

In India too Mc'ds and KFC do deliveries. It comes down to cost of labour and employment regulations. I think Mc'ds got it right, delivery wouldnt be worth the effort IMO.