Bob McNulty Shares How Trip Delivers Saves Restaurants Thousands While Giving Drivers A Serious Pay Rise

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Neil Howe  
Well, it seems like a good decision. And like you said, people are forming habits now getting their groceries delivered getting their meals delivered, and they will come to rely on that. So I see that skyrocketing in the years to come. Let’s talk about the restaurant industry right now. They have services available to them like Uber Eats doordash grubhub Postmates. What kind of issues are the restaurants having with these companies and talk about their business model versus Trip Delivers?

Bob McNulty
Yeah, our business model is totally different than everybody else in the space. And if you read through any white papers, there’s plenty of them online to read. You can see immediately the problems and the problem in the restaurants is they get charged money. And they also get their menus marked up. So it’s a combination of pricing that goes on by Uber Eats or any of the other Grubhub are those guys. So the restauranteurs really don’t like the business model, but they can’t do without the business. They still got to serve up food and get their efficiencies going. Particularly with COVID because they reach a lot of the retail restaurants have limited patronage or they have none at all in the stores or in the restaurants. So the only way they can keep their business up and running and pay their bills is to do outsourcing of third parties. So we looked at the business said, again, just taken our business model and said, Hey, we’re a SaaS business model, let’s just charge the drivers kind of the same pricing that we’re going to do in the rideshare. But let’s go to the restaurant and just do a flat fee pickup and delivery. So while the other rest the other providers for delivery charge anywhere from 20, to 40%, sometimes more, it’s all hidden. In the receipt, the driver doesn’t see the receipt that the consumer sees. The restauranteur doesn’t see the receipt that this other person sees. So ours are very transparent. We all are line items line up for everybody to see, we charge our week, we have a membership program. So if you’re a member restaurant, we charge you $2, a pickup and delivery. And if you’re a non-member, he charged at three bucks. So you can save you know, the dollar per delivery, probably very quickly, just if you’re doing 15 to 20 deliveries a day. Not that we’re going to get all the deliveries a day, we don’t expect that. But we do expect that over time, we’ll be able to, you know, get into the market share business with these guys. Because the power of having a reduced price. For the restauranteur that’s significant. It’s not like a little bit, it’s like 75% cheaper, well drive revenue growth to the side. And if you look at most disruptive business models, whether it’s where you are like one Home Depot, for example, which was really disruptive back in the day when they started and to this day, to this day, they’re still disruptive. It’s just not the pricing model. It’s is the configuration of service in their business, the configuration of other product lines that they’ve added, like kitchen cabinets, and decor and all those kinds of things. So they’ve evolved their business to stay disruptive ahead of the competition, same thing is going to happen here, if you look at almost all businesses, particularly when it’s like retail, and I consider rideshare all this kind of stuff we’re done is customer driven. So it’s more of a retail play. But if you look up the cost goes to the world and people like that you see their competitive edge they’ve had since day one. As long as the company is staying in front of the game, nobody can beat them. It’s only when they don’t stand for the game, that they beat themselves, actually.

Neil Howe  
Right. So let’s, I’m going to put you on the spot here and maybe do some math, which is never a good thing in an interview. But from a restaurant owner’s point of view, you know, how much are they actually saving with a $2 to $3 delivery flat fee, rather than what they’re paying right now? I mean, what are they paying right now?

Bob McNulty 
Well, they’re paying anywhere from 20 to 40%. So I mean, I get them all the time, I should have put I should have brought one. So I can hold it up receipts and like on a $40 you know, food pickup and delivery. If it’s being marked up 20, 30, 40%, you can get to the numbers pretty quick what it costs on that order. And I have you know, a number of our people out in the field, send me receipts all the time, look at this order. And here’s what they would have paid with us. And they go through that when they’re pitching a restaurant to sign up for this. We don’t ask the restaurant to not do business with their current delivery service. We’re just saying, hey, fit us into your schedule. And we don’t mark up your menus and things like that. So we’re we have about 150 restaurants, online that we just put up in Nashville, we’ll start working the other side, getting our app out there and getting you know, download the app in the marketplace and start utilizing it. You know, the biggest thing is getting the restaurants lined up. And that’s, that’s the challenge that we have. And we just get after it. Get them signed up.

Neil Howe 
All right, I’m gonna do some quick math here because I want to get this straight before we move on. So if you’ve got a 40 a $40 meal, and you’re paying 20% – 40%, in delivery. So that could be anywhere from $8 to $16 and delivery fees that the restaurant has to pay.

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Neil Howe

Neil Howe is a 3-time #1 Best Selling Author, Online Media Strategist and business radio talk show host. He covers the most Innovative Business Leaders in Small and Local Business helping them share their stories with the world.