The Scenario: The Delivery Dilemma 🍕
Context: "Pizza Palace" is a popular local restaurant. Currently, customers
must visit the shop to collect their food. The owner, Marcus, is deciding
whether to sign up for a delivery app called "QuickEats".
The Proposal: Marcus has identified 6 key factors involved in this decision.
Read them carefully:
1. Commission Fees: The app takes 30% of the cash from every single pizza
sold.
2. Sales Boost: The restaurant predicts it will sell 200 extra pizzas per week.
3. Staff Stress: The kitchen team is worried they will be overwhelmed during the
Friday night rush.
4. Brand Reputation: If the delivery drivers are slow, the pizza might arrive cold
and customers will leave bad reviews.
5. Customer Reach: People who live far away (and couldn't visit before) will
finally be able to try the food.
6. Cost Savings: Marcus does not need to buy his own expensive delivery
scooters (saves £15,000).
1. Cost Benefit Analysis
Sort the 6 factors from the scenario above into the correct box in the table
below. Is each factor a Cost (negative) or a Benefit (positive)? Is it Financial
(money) or Non-Financial?
BENEFITS (Positives)
Type
COSTS (Negatives)
Financial
(Money-based)
The app takes 30% of
the cash from every
single pizza sold.
The restaurant predicts it
will sell 200 extra pizzas
per week.
Marcus does not need to
buy his own expensive
delivery scooters (saves
£15,000).
Non-Financial
(Qualitative)
The kitchen team is
worried they will be
overwhelmed during
the Friday night rush.
If the delivery drivers
are slow, the pizza
might arrive cold and
customers will leave
bad reviews.
People who live far away
(and couldn't visit before)
will finally be able to try
the food.
More customers brought
into the shop to buy
pizzas
1. The Verdict
Imagine you are Marcus. Review your table and make a final business
decision.
If I was Marcus, I would personally take the Business deal mainly because
creates more clout for the Business. Whilst I am losing Profit because of the
30% of the profit being taken by the delivery company I am also gaining
money because of the additional revenue created by more people buying
pizza especially online.