An opinion piece about home delivery, featuring Kotipizza and Priceff, was released by Kauppalehti 11.3.2021. The article was originally published in Finnish; here is our translation below.
In the restaurant sector, there is a debate going on about the commissions that delivery services such as Wolt and Foodora are charging restaurants (Talouselämä 4.3.2021). The delivery services oppose the restaurants' suggestion that restaurants could add the delivery service commission transparently to the price paid by the customer. In this way, delivery companies would not eliminate restaurant margins with their commissions of up to 30%.
The demand for home delivery of food will continue to grow. However, with the restaurant industry suffering in an unprecedented way from the corona pandemic and regulatory restrictions, it is unreasonable for the already thin margins of restaurants to go towards financing the growth of delivery services funded by deep-pocket investors.
The collaboration between the Kotipizza chain and Priceff has shown that in many cases, a restaurant's own transportation service is a more profitable option for a restaurateur than an external delivery service. Together, the companies have developed a dynamic pricing model for transportation, in which the price of transportation is determined by demand. With the dynamic pricing model, restaurants have been able to increase the turnover from home deliveries by up to 30 percent.
The restaurant's own transportation service combined with dynamic pricing is an efficient but fair way to meet the growing demand for transportation. The model guarantees the consumer the availability of the service at a reasonable price, but at the same time also takes care of the profitability of the restaurant.
Johanna Kuosmanen, Digital and Customer Experience Director, Kotipizza Group Oy
Tiina Laisi-Puheloinen, CEO, Priceff Oy
