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Your comment uses the word 'margin' in two different senses, which makes it hard to evaluate its claims.

When you talk about 'beverage margins' or 'food margins', you must be talking about 'gross margin', i.e. [selling price, less direct costs of good sold] / [selling price]

When you talk about 'restaurant margins' and mention 2-6%, you must be talking about net profit margin (i.e. profit as a percentage of revenue).

It seems like you're comparing gross margin on beverages, with net margin for a restaurant overall. Not apples to apples.

The markup on food (based on ingredients only) and wine is similar (3x). It costs virtually nothing to store wine or to prepare it for sale. But the process to take ingredients and make a meal takes a lot of labour and machines.




>It seems like you're comparing gross margin on beverages, with net margin for a restaurant overall. Not apples to apples.

Oh brother. The high gross margins on beverages positively contribute to the net margins. The point is that most restaurants aren't crushing it, margins are thin, and a middle-man taking a cut doesn't help.

on


"The point is that most restaurants aren't crushing it, margins are thin, and a middle-man taking a cut doesn't help."

Yes, I agree with you. See my other comment:

https://news.ycombinator.com/item?id=17780385


> It costs virtually nothing to store wine or to prepare it for sale.

Well, except the cost of the space. Oh, and the refrigeration. Oh, and employing a sommelier (if it's a higher end restaurant).

Other than that, virtually nothing.


What's the mean time of wine storage for a bottle of wine in a restaurant that delivers via DoorDash? A week? A month?

What is the cost of space and refrigeration for that time? 15 cents? 25 cents?

It's virtually nothing compared with the labour and machine costs of storing and turning ingredients into a meal.

And I'm genuinely curious (DoorDash isn't in my city) what proportion of restaurants that use DoorDash also have one or more sommeliers on site.


“It costs nothing to store wine”. Well except the amount paid for it and having it sit around not doing anything.




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