Gourmet units: we deliver

Nation's Restaurant News, May 2, 1988 by Peter J. Romeo, Karen Bruno

Players that have bowed out of delivery cite a slew of reasons for their retreat.

Popeyes' 18-month "test" of home delivery "was very successful," but "other things being tested" took precedence, a representative for the 550-unit fried-chicken chain said at the time of the pullot.

Insiders and other knowledgeable sources said the retrenchment was also undertaken because drivers often delivered to high crime areas, requiring very expensive liability coverage and exposing the chain to possible lawsuits.

Financial analysts attributed the demise of Pillsbury's nine Quick Wok delivery outlets to a low check average, which crushed profit margins, and consumers' reluctance to call in orders to a place where they had never eaten.

'People may need to experience (Chinese food) in a restaurant first before they will feel comfortable ordering it for home," observed Kirk Brennan, a restaurant consultant for Lippincott & Margulies in New York.

What remains of the Quik Wok, which once numbered 39 units, is now for sale.

Southern Hospitality, a Chattanooga, Tenn.-based Wendy's franchisee, recently took a $500,000 write-off against the loss incurred in the sale of its Big O's pizza delivery system. A few years beforehand, to launch Big O's, Southern Hospitality sold its Mr. Gatti's pizza parlors back to the franchisor, which now offers delivery through its units.

Carson Pirie Scott, the Chicago-based department store chain, closed some of its seven Box Office Pizza delivery units and sold the rest as part of a withdrawal from food service.

When the retailer launched Box Office, it said it planned later to branch into the delivery of other foods as well.

Jeno Paulucci, whose past successes include the Chun King and Jeno's packaged-food lines, recently shelved his Pizza Kwik business to start up another delivery service called China Kwik, specializing in Oriental fare. Pizza Kwik, in essence a call-routing service that required subscribers to adhere to certain product guidelines, was marketed as a measn for independent pizza operators to branch into delivery.

-- Peter J. Romeo

PHOTO: Lee Cohn, president of Big 4 Restaurants, a Phoenix, Ariz. dinner house operator, stands in front of Oscar Taylor's, a new entry in the arena of fullservice operations that offer home delivery.