Delivery food businesses are becoming increasingly popular with the rise of delivery food applications.
With the popularity of food delivery applications such as Uber Eats and Postmates businesses are now using their own delivery drivers to transport their food directly to the customer. Some businesses are also only offering delivery services and getting rid of storefronts altogether.
Eric Hitchcock, an associate professor at Arizona State University College of Law teaches a class on small business and has consulted many businesses who want to change to only delivery. He said he notices that many of those businesses don’t succeed because of other competition when it comes to delivery their products.
“If you’re going to base your entire business on delivering the food you’ve got to have a reason that someone’s going to buy your product. For the business side of that, you’ve got to make sure that whatever you’re doing is good. The bad part about that is the economy and society is that often times you’re using people who are supplementing their meals with a person.” Hitchcock said. “Customers will often remember who delivers their food from that company and put a face to their product. There are some questions about how long that model will continue to work.”
Dirty Dough is a cookie company located in Tempe, Arizona that focuses only on delivery. Without an available storefront, they rely solely on their drivers to get their products to their customers. This model comes with risks and benefits as without a store they can only deliver to those in the Tempe area code.
The company was founded in October of 2018 by a husband and wife duo after they moved from Utah to Arizona and saw the need for a late-night cookie delivery service for students in the surrounding college area.
The co-founder, Tyler Peery, 24, said he never imagined for something as simple as cookie delivery to become a reality as a career.
“I was working at a job I hated at a call center and once my wife and I launched Dirty Dough it became a reality for me to continue their full time,” Peery said. “It’s something we launched with no real intentions of it going anywhere besides some family and friends but now I’m blown away by how fast it’s grown in such a short time. I mean there are nights where we sell out and I’m just in complete shock.”
The model of their business is reliant on delivery drivers to transport the monthly changing cookies directly to customers. The process is simple as the customers choose a time when they want to have the cookies delivered and within a time window, the cookies arrive.
The delivery drivers are the key players in this delivery only model as they are the middle man between the cookies and the customers.
Zach Toney, 24, first met Tyler when they were both working at Education at Work, which is a call center that connects students to direct companies and gives them real-world experience, per their website. He was hired as a delivery driver at Dirty Dough in October of 2018.
“I think the model works for Dirty Dough because we deliver to students studying late at night and they don’t want to take the time to go to a store. With us being able to just deliver our cookies to them it just works better.” Toney said. “I think it’s kind of trendy to only deliver but I do wish we had a store just to have a set location as an employee. I couldn’t imagine it any other way though.”
Although this business model is working, for now, Perry described that they are actively looking for a storefront so they can expand their deliveries and not be solely based in Tempe.
“I think for our future we need to open a store because we can only deliver to certain areas and with a store, it would make us accessible to many more customers which is something I know people have been requesting as I see it every day in our Instagram direct messages. It would make us easier to reach I think.” Peery said.