Homeboy’s Restaurant and Delivery Service has a wonderful idea because they are satisfying one of the basic principles of business, which is that they fill a void in the market to customers by providing a product or service. This is important because they are capitalizing on the other restaurant’s idiocy for not delivering to certain customers in specific geographic regions. Where Homeboy’s has a challenge to their business model is that their service could be entirely eliminated should the other food companies decide to start delivering because it will cut out the middle man, (Kokemuller, N.). Thus, it is going to be crucial for Homeboy’s Restaurant and Delivery Service to to differentiate their services and possibly even open a distinct restaurant themselves. Otherwise, it is going to be difficult for them to survive in the long run. However, for now, Homeboy’s Restaurant and Delivery Service is doing an excellent job meeting the intangible elements of people and adhering to service standards.
What is crucial to selling any product whether tangible or intangible is the benefits v. experience measurement, (Kokemuller, N.). This is a crucial part of the analysis because Homeboy’s Restaurant and Delivery Service is showing their customers a benefit by delivering to an area that does not take delivery. The experience of getting all local menus available to them and the delivery of those local menus makes the $3 surcharge to the customer have value because they don’t want to physically go get the food themselves.
The next part of the analysis of selling the product is the Demonstration Tools, (Kokemuller, N., 2016). Homeboy’s Restaurant and Delivery Service does a great job with their Demonstration Tools because they present the menus of the restaurants that they deliver from in order to show their customers the diversity and value of their service, (Kokemuller, N., 2016).
Lastly, the Assurances is what the services standards requires of the business to provide to their customers, (Kokemuller, N., 2016). By delivering the products on time, Homeboy’s Restaurant and Delivery Service is giving the assurance to their customers that when the customers order their products, they will deliver them on time, hot, and ready to be consumed. This provides a great value to their customers who do not want to go get the food themselves.
Now, how should Homeboy’s Restaurant and Delivery Service deal with the potential threat of the restaurants deciding to deliver to the citizens of these previously non-covered geographical areas? The answer is in their standards of delivery service, (Parpal, M., 2015). For example, Homeboy’s Restaurant and Delivery Service needs to make their delivery regime competitive. They need to have an App to make orders get processed faster and they need to beat out the competition of the restaurant that they are trying to deliver for and do it for a lower cost, (Parpal, M.). This is how Homeboy’s Restaurant and Delivery Service is going to beat out the competition of the very restaurant that they are trying to deliver from. By doing this, the restaurant will not try to hire the staff to deliver to those clients. Another way that Homeboy’s Restaurant and Delivery Service is by offering an incentive to the restaurants to not buy out their business model. By doing this, they will ensure their corner in the market.
All in all, it is important for Homeboy’s Restaurant and Delivery Service to keep their customers and the restaurants that they deliver for happy. If they do this, they will meet the quality standards required for service providers and also will keep the restaurants from wanting to eliminate them from the market. This is what will keep their business running in the long term.
References
Kokemuller, N. (2016). How to Sell Tangible Vs. Intangible Products. Retrieved from: http://yourbusiness.azcentral.com/sell-tangible-vs-intangible-products-16727.html/.
Parpal, M. (2015). Running Successful Take-out and Delivery Services. Retrieved from: http://www.foodservicewarehouse.com/blog/running-successful-take-delivery-services/.
