The restaurant food-delivery space has undergone rapid changes recently. The advent of technologies like user-friendly apps and tech-enabled driver networks, COVID-19 lockdown and distancing requirements, and shifting consumer expectations have elevated 'ready-to-eat food delivery as a major category' poised to remain a permanent fixture in the dining landscape' (Ahuja, 2021).   While food-delivery service certainly served as a critical lifeline to customers during the height of the COVID-19 pandemic, the change in how and where consumers eat and the sharp increase in demand for ready-to-eat food delivery service raises a number of challenges and questions for our company. Donatos already offers in-house delivery; delivery makes up nearly 50% of Donatos revenue and must remain profitable for us.  As minimum wage skyrockets across the country and DONATOS compete for drivers with the ‘gig economy’, we have to figure out how to best adapt to this rapid change in the environment. For instance:

These are just some of the important questions Donatos is asking as the company seeks to better understand the impact of 3rd party delivery at the brand which already offers in-house delivery. The bottom line: Donatos want to compete with the best solution that maximizes sales while controlling costs. Donatos is looking to you for solutions. The company needs a comprehensive understanding of the potential impacts, and is asking you to provide actionable recommendations on how to best incorporate 3rd Party Delivery into our existing service.  This includes when to implement, what the costs of each service is and if 3rd party delivery either through their channels or our channel (utilizing DoorDash Drive) makes sense.  Additionally what are the customers reactions to 3rd party including the cost and value it provides. We also ask that you propose a complete financial model as a key component of the solution you propose.