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Calculating Carryout: How Restaurants Can Predict and Leverage the Impact of 3PD

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When your success doesn't depend on seating capacity and the comforts of dine-in, you have a lot more flexibility to consider nontraditional stores that wouldn't otherwise be viable. People can place orders from a location on a college campus, in a mall, at a hospital, or even within a larger retail store. As long as delivery drivers can easily access your front counter without significantly disrupting other operations (such as grocery shopping), these locations can fulfill orders within a reasonable driving distance. Some restaurants are even choosing locations solely for their potential to serve as "ghost kitchens," which need far less space and can rely entirely on 3PD. They can find small facilities in unusual locations that are just big enough to support a kitchen and a pickup window, but near enough to demand that they can fulfill a stream of 3PD orders. Finding profitable locations and increasing market share isn't dependent on accommodating dine-in orders—you simply need enough space to cook and hand off orders. (And ideally, the ability to keep up with demand.) When customers place their orders online and don't even need to find your store to receive their order, even visibility becomes less important. But in order to know definitively whether 3PD can support these nontrad locations for you, or how they stack up against the more substantial investment you'd make in traditional locations, you need to know the breakdown of dine-in, 3PD, first-party delivery, and regular carryout orders. 03 E X P L O R I N G N E W N O N T R A D L O C A T I O N S 2024 Calculating Carry Out: How Restaurants Are Responding to 3PD Copyright © 2024 Tango. All rights reserved. 5

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