RTN’s Native Delivery TCO Calculator Helps Restaurants Double Down On Delivery Decisions
Angela Diffly, Co-founder, RTN
The Restaurant Technology Network recently wrapped up its Native Delivery workgroup and published the industry’s first Native Delivery TCO Calculator, a smart spreadsheet packed with precise formulas for evaluating Native Delivery (in-house fully-owned: you produce and deliver the order), DaaS (delivery as a service: you produce the order and outsource delivery), or Third-Party Delivery (where you outsource both creation of the order and delivery). Restaurants can download RTN’s TCO Calculator to evaluate delivery models, insert their own data, and discover which delivery models make the most sense for them at various stages of growth.
Ryan Pershad, Global Operations for GetSwiftheaded up the workgroup. “The TCO Calculator looks at three delivery models and their unique attributes, such as the cost of drivers for Native Delivery or commission rates for Third-Party Delivery,” he said. “But more importantly, it allows operators to insert proprietary data in terms of functions, order volume, margin, etc. for a comprehensive view of what profitability looks like per model — with the ability to project into the future with multipliers on location and time.”
After test-driving the tool, Sonny’s BBQ Lead BI Analyst Alex Regar said he found value in adjusting the Average Deliveries per Day to gauge the impact of increasing daily orders for DaaS, as well as discovering the number of daily deliveries needed for DaaS models to earn more than third-party delivery models. “The Native Delivery TCO Calculator has several additional elements that augmented our internal delivery evaluation, like fixed costs, loyalty coefficient and hourly order volume breakdown. I really enjoyed test driving this tool!”
To accompany the tool, Ryan Pershad and Zack Oates, Founder & CEO of Ovation, created an instructional video to walk restaurant operators through the spreadsheet variables, and the workgroup also published a companion document for Native Delivery Best Practices.