Worcester Business Journal

wbjournal.com | April 30, 2018 | Worcester Business Journal 13 S M A L L B U S I N E S S F O C U S orders from Grubhub could back up a kitchen, threatening to impact the customers in the restaurant that have ordered drinks and tipped a server. Piccolo's doesn't do much business with Grubhub, he said, unable to quan- tify how many customers have ordered a dish from the restaurant. But, it's still extra business. "I'd rather have that extra money at the end of the month," Piccolo said. The hospitable hands of a restaurant Despite the notable list of restaurants signing onto Uber Eats – Compass Tav- ern, Worcester Sandwich Hut and British Beer Co. – and the dozens of others us- ing Grubhub, food delivery services are met with hesitation by some of the city's top restaurants credited with placing Worcester on the foodie map. Main Street favorite deadhorse hill was working with the Dashed/Foodler partnership before the driving and so- ware company was acquired by delivery giant Grubhub last June. e restaurant didn't pursue working with Grubhub aer that. "We were doing such little business with them anyway that it hasn't affected us either way," said chef and co-owner Jared Forman. He recalled the ownership group's initial hesitation due to the service's large commission. "It's a ridiculous amount," Forman said. "When you're dealing with an in- dustry with 5-percent profit, giving away 30 percent of that to a delivery service is not justifiable." e restaurant only used the ser- vice during lunch hours to keep those commission costs at a minimum while finding its way into Worcester offices and homes for its frequent and repeat customers. "If it's raining and someone doesn't want to leave the office, we're eliminating one person from eating our food," For- man said. "We want people to be able to access what we do every single day." At a restaurant like deadhorse hill, however, customers aren't just paying for the food. ey're paying for the entire experience. Restaurants are part of the hospitality industry, and food is just a fraction of that business. "When you go to a restaurant, things should be happening for you, not to you," Forman said. "ings can't happen for you if you're having a meal alone at home on the couch in the dark. ings happen for you if you put yourself in the hospitable hands of responsible restau- rant owners." Using the service, deadhorse hill just about broke even, Forman said, but making money wasn't what the restau- rant aimed to do. "We just wanted to be able to service our customers better," he said. Sotirios "Sam" Georgiadis uses Uber Eats to create complementary revenue for his Shrewsbury Street eatery. Delivery services help businesses Online-based delivery services have begun doing business in the Worcester area, including Instacart, Shipt, Uber Eats and Carvana. When polled online, WBJ readers overwhelmingly felt these services add to businesses' revenue, rather than keeping more people at home. F L AS H P O L L With the Worcester's economic momentum creating more down- town commerce, will services keeping consumers home threaten to undo that progress? Yes. Restaurants and other businesses depend on foot traffic to drive revenue. 26% No. The services expose companies to new revenue sources. 74% Incremental revenue e Worcester Restaurant Group, owners and operators of Via Italian Table, 111 Chop House and e Sole Proprietor, don't use any delivery ser- vice and never have. Chief Financial Officer Kevin Hunt did, however, disclose in an email the Worcester Restaurant Group has been approached by a service, but he did not name which company. Like others, the group cited the 30-percent bounty, but also the inability to control the quality of the food once it leaves the restaurant's door destined for a customer's home. "Our No. 1 concern is the integrity of our product when it reaches our guests," Hunt said. e quality of service is out of a restaurant's hands, Hunt said. Adding a third-party vendor may just be too risky for high-end restaurants like the three Hunt works for. Despite the uncertainties, Hunt and company executives are considering it. "If it truly brings us incremental busi- ness, it would be foolish to not seriously consider getting into the delivery game," he said. Is it even worth it? Some restaurants, like Depot Street Tavern in Milford, are already boom- ing with business and wouldn't be able "When you're dealing with an industry with 5-percent profit, giving away 30 percent of that to a delivery service is not justifiable." Jared Forman, chef and co-owner, deadhorse hill to keep up with demand if the popular eatery offered delivery. "I don't think I'm equipped to produce that much food," said owner Adam Hicks. e small Milford restau- rant is popular in town, and now Hicks is bringing some of the same food and themes to Worcester with Maddi's Cook- ery and TapHouse in the Canal District, expected to open this summer. Delivery is on the table once that location opens, he said. Depot Street has a robust takeout operation, and takeout customers can order one of the restaurants many cra beers while waiting for food. "You'd lose the social aspect of people coming in and en- joying the atmosphere, which is an integral part of a restau- rant," Hicks said. Hicks has neither ruled it out nor has he actually looked into delivery services in Worcester, he admitted. "I don't love it, but I don't hate it," he said. "You're getting more business, but if you're paying 20 to 30 percent off the top when your margins are already so slim, is it worth it?" W PHOTO/ZACHARY COMEAU

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