I'm using extra data to add to the original study—which found that off-premise takeout and delivery increased from 50% to 60% after the pandemic leading to higher sales per employee—to show that extra costs like lease payments, insurance, wages for waitstaff, and utilities don’t fully offset the slightly higher profit margins from selling alcohol on premise compared to selling food and non-alcoholic drinks through takeout or delivery. Using financial data, I demonstrate higher off premises takeout or delivery leads to higher sales per employee -- the same conclusion the paper we are discussing made.
Notably, the paper shows that the share of visits lasting 11–20 minutes did not drop (and even increased a bit). This indicates that the overall shorter visit times aren’t because dine-in customers are being served faster. Instead, it’s mainly due to a rise in takeout and delivery orders (takeout customers are being served slower because there are more, if you follow.) In other words, even if people wait a bit longer for their takeout, the large number of takeout orders is what lowers the average time customers spend at the restaurant which corresponds to the higher sales per employee. (If you disagree with this interpretation, please refer to the study, as that is its main argument.)
My point is that even though alcohol generally has a higher markup, the extra overhead needed to sell alcohol on premise means that its profit margins do not fully make up for those costs compared to off-premise takeout or delivery. Moreover, the data from The Cheesecake Factory, ~25% off premises takeout or deliver sale, is similar to what is seen in any traditionally dine-in U.S. restaurant, corporate or mom and pop, that isn’t Michelin starred.
Notably, the paper shows that the share of visits lasting 11–20 minutes did not drop (and even increased a bit). This indicates that the overall shorter visit times aren’t because dine-in customers are being served faster. Instead, it’s mainly due to a rise in takeout and delivery orders (takeout customers are being served slower because there are more, if you follow.) In other words, even if people wait a bit longer for their takeout, the large number of takeout orders is what lowers the average time customers spend at the restaurant which corresponds to the higher sales per employee. (If you disagree with this interpretation, please refer to the study, as that is its main argument.)
My point is that even though alcohol generally has a higher markup, the extra overhead needed to sell alcohol on premise means that its profit margins do not fully make up for those costs compared to off-premise takeout or delivery. Moreover, the data from The Cheesecake Factory, ~25% off premises takeout or deliver sale, is similar to what is seen in any traditionally dine-in U.S. restaurant, corporate or mom and pop, that isn’t Michelin starred.