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Strategystandard

Should a meal-delivery app launch its own ghost kitchens?

How to approach it

Think about the conflict first: the app would compete with the restaurants that supply it. Ask whether the margin gain is worth that risk.

How a strong answer opens

“The tension I'd look at first is that the app would compete with the restaurants that supply it. The question is whether the margin gain is worth that risk.”

Outline of a strong answer

Try answering out loud for a few minutes before you open this.

  1. Clarify the goal: margin, speed, or filling gaps in cuisine supply
  2. Size the margin gain versus marketplace commissions
  3. Assess restaurant partner reaction and churn risk
  4. Evaluate operating skills needed: real estate, kitchens, staff
  5. Consider a pilot in one city for underserved cuisines
  6. Recommend with clear success and stop criteria

Where this question usually goes wrong

Focusing on the margin gain and ignoring how restaurant partners would react to the app becoming their competitor.

Learn the method

Should we enter this market? in Module 5, Product strategy.

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