Free Delivery When Everyone Charged for Taxis
Books Teaching This Pattern
Evidence

St Hubert: 50 Years of Great Success
Beatrice Richard · 3 highlights
"Like its competitors, St-Hubert Bar-B-Q provides delivery, but at the customer’s expense. In addition to the order, the customer must pay $2 or $3 for a taxi. However, at the time, this kind of extra charge is not within everyone’s budget. At this rate, the clientele risks plateauing quickly. René then has a flash of genius: why not deliver the chicken for free? Free delivery, the rotisserie owner believes, would encourage more people to place orders. In return, a sufficient flow of deliveries would allow the transportation costs to be spread among a larger number of people, in short, leading to substantial economies of scale. Even better, beyond a certain threshold, it is possible to make a profit. To make this service profitable, René calculates, they would need to deliver at least $1,000 in meals per week. The concept is revolutionary. Perhaps too much so. Hélène hesitates. If no one has ventured down this path yet, it’s probably because it leads nowhere. And what will they do if the orders are insufficient? Their business is only just starting to recover. Is it really the right time to get involved in another experimental project? In the end, the young woman agrees to “give it a shot.” You might as well strike while the iron is hot."
"The rotisserie is experiencing another upheaval. It’s not the first, and it won’t be the last. The kitchen is being expanded and the basement is being renovated. In no time at all, the Léger family sets up a state-of-the-art delivery system, unique of its kind. Three telephones are installed to take orders, and the rotisserie acquires three cars to ensure deliveries. Of course, radio advertisements announce the good news. The move gets people talking. René becomes the laughingstock of the other shopkeepers. Free delivery? The small rotisserie on Saint-Hubert Street has really lost its mind. At the cost, they’d have to sell a lot of chicken… Impossible, it won’t last a month."
"Getting ahead of the wave. René remembers the lessons from previous months. If he does not meet the demands of his customers, the competition will be happy to do so. All the human resources of St-Hubert Bar-B-Q—in other words, the entire Léger family!—were thus put to use. René hires his brother as a deliveryman and his father takes over order dispatch. During the week, Hélène or René handle the deliveries. Soon enough, though, the family workforce is not enough for the job. Demand continues to grow. Clearly, there is an opportunity here that deserves to be exploited on a larger scale. The idea is beginning to take shape in René’s mind. Of course, this requires an entire organization… and a significant investment—yet another one! Still, the business remains risky."