As restaurants reopen and capacity limits hopefully become a thing of the past, online reservation platforms like Yelp, Open Table, and Resy are all booming. Diners want a seat at their favorite restaurant and, for the time being, operators are all too happy to outsource this function to third party platforms.
Fast-food chains across the country and around the world are finding that they cannot keep key ingredients and supplies in stock, limiting the availability of certain menu items and hindering operational efficiency. We are talking about basic items here like Frozen French Fries, produce, meats, condiments, and even paper bags and napkins.
As the pandemic recedes, third-party delivery companies like DoorDash, Grubhub, and Uber Eats, which all remain unprofitable, are facing something of an existential crisis.
This last month, after a four-year respite, I once again became a vegetarian. But do not fear, dear readers, my reasons are my own and I am not here to preach—feel free to chow down on a chorizo and potato breakfast burrito as you read this because there is no judgement here. However, do spare a thought for my man, who was seduced by my posole and Sourdough Nick cheeseburgers, but now finds blocks of tofu where his tri-tip used to be.
The pandemic has undeniably been a boon for third-party food delivery companies. DoorDash, as we described late last year, posted profits for the first time in its history, owing largely to pandemic-fueled deliveries to the suburbs. Similarly, Uber told investors late last year that it too expects to finally hit profitability, likely by the end of 2021, owing largely to—you guessed it—UberEats.