One Line Summary: Free, convenient online ordering and low-cost (algorithmically-managed) delivery service from hundreds of local restaurants.
Business Summary: A prairie-based start-up that is leveraging the growing trend of online ordering. SkipTheDishes Restaurant Services Inc. (Skip) offers consumers the convenience of ordering delivery from interactive menus of hundreds of typically non-delivery restaurants (sorted by location, cuisine type, reviews, etc.). Restaurants benefit from marketing exposure, incremental orders, and use of Skip’s scalable delivery service. A commission per order value is charged to the restaurant. Expenses are limited to marketing, management personnel, IT system investment and maintenance, and scalable delivery resources.
Management Backgrounds: IT enterprise architecture, investment banking, law, application development, and management consulting.
Services: Currently operating in Winnipeg, Saskatoon, Regina, Calgary, Red Deer, Prince Albert, Edmonton, Brandon, Moose Jaw, and Airdrie:
Market Value Propositions:
Target Customers: Growing segment of population ordering from restaurants for convenience and variety vs. cooking themselves.
Target Restaurants: All. Current restaurants range from local ethnic restaurants to Subway and Papa John’s.
Delivery Market Size: Assuming 2% of the $65B spent at restaurants in Canada was delivered, and that 70% of restaurants are in serviceable locations, if Skip delivered for 35% of restaurants it would generate $48MM of revenue annually (at a 15% commission).
Business Model: Investment in a core management team, IT systems and a process governance model can be leveraged to scale the business across Canada with comparatively low marketing costs. Consumer attraction is accelerated by virtue of the societal adoption of online consumer services. Restaurants join quickly because there are virtually no costs to them until orders are increased, and commissions (10% for online ordering only or 20-25% if Skip provides delivery) to Skip are only charged once orders are placed.
The ordering and delivery sides of the business are linked, but can be operated independently. This affords Skip the opportunity to partner with a best of breed organization for ordering, and more rapidly advance its business volumes by being able to focus on delivery (the more profitable business) – both from an online ordering portal, and also orders directly from restaurants.
Competitive Advantage: Speed to market, IT system design, and delivery management process governance and efficiencies.
Accomplishments: Over 900 restaurants throughout Western Canada contracted across three provinces, exponential order volume and user base growth, onboarding major chains (e.g., Subway, Taco Time, Pita Pit, Quiznos).
Next Steps: Fund expansion into Eastern Canada and a US location, benefitting from resulting economies of scale and the scalability of Skip’s systems due to its algorithmic nature. Hire a seasoned executive team to manage growth.