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.
Bob McNulty
Yes. So here, here’s, here’s what you here’s the numbers, you got to go into the restaurant business itself. So if you say an average restaurant is delivering between 15 and 20 deliveries a day, and if he’s getting knocked around for eight to 16 bucks, but let’s just say it’s 12 to $14. Right? And just multiply that a day multiply it six times, you know if they’re open six days a week. I mean, you’re talking about 70, 80, 100 thousand dollars in delivery fees they’re saving with us. That makes a huge difference for a small mom and pop restaurant.
Neil Howe
Yeah, I was gonna say okay, what kind of margins are restaurants running out because that’s going to take a huge chunk of their margin.
Bob McNulty
Right, and that’s the whole thing, their food cost doesn’t really get covered when they start getting hammered like that. And that’s the problem. So our solution was a flat fee, crushed the pricing down, you know, and do all the other things we’re doing from a disruptive standpoint, that’s a SaaS business model. So there’s no fair split with the drivers, the drivers get 100% of the fare, we outline exactly what that means. So it’s there’s no hidden agenda with us. It’s just full transparency on every line item. So the consumer sees that the driver sees it, the restauranteur sees it. So there’s nothing left to wonder.
Neil Howe
hmm. All right, so let’s move on to the drivers, I want to come back to the restaurants in a minute and find out how they can get signed up because I’m sure once they hear the savings that they can make, they’re going to want to know how they get signed up and how they can get started. But let’s talk about the drivers because I’m sure the drivers aren’t getting that, you know, 12 to $16 delivery fee that these delivery companies are charging right now.
Bob McNulty
No, they don’t I mean, they, they get a portion of that. And which is interesting, even the drivers can’t tell you what percent of that they’re getting. They don’t know, because they don’t see the full receipt. So that that in there lies a problem for the drivers. One of the things that we recognized early on is the drivers the backbone of this business model. So if they’re the backbone of the business model, and you need to think about how do we make things better for the driver, whether it’s, you know, a better pay model, or just recognition, you know, Hey, you guys are doing a great job. And not to say the other companies don’t do that they have recognition programs, too. But I think coupled with the business model itself, leaves the driver out in the cold a lot, you know, they need to be embraced for what they did, because in the scheme of things, drivers work really hard. I mean, if you’ve probably taken Uber’s, and lifts and all that stuff, and you’ve you know, been run all over the city and whatever, you can see how hard they work, you know, and they’re, they got to get you to your place and get onto another ride. So they’re making the cars moving, they need to be making money. And by us charging a flat fee, whether it’s $39.99 a month, or $99 a month to drive, they know exactly what their monthly spend is. So it’s not hard for them to figure out. The other thing we do for the drivers also in the restaurants, we issue each driver their own card processing. So they truly are independent. So the fees that they make, go directly from the consumer directly to them in their bank account, we don’t get in between the money. In other words, we don’t control it, they sign up with us they get issued a merchant account, just like the restaurants do. So the money gets to them, you know, pretty immediate, it’s not like they have to wait a day or two, it’s usually they set it out in batches every few hours.
