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Why Online
Incremental Sales
Very few restaurants currently have web sites that support online ordering. The Company believes the capability can have a significant effect on restaurant sales and profitability. For those restaurants that have developed or tested the capability, the Company's findings are that take-out and delivery sales have increased on average approximately 15 to 20 percent from prior levels. The increase has typically occurred as a result of both an increase in the frequency of orders as well as an increase in the average check for online orders versus either phone-in or faxed-in take-out orders. Additionally, these incremental sales generally provide the highest margin of profitability. In store labor and supply costs are not fully incurred. The majority of restaurants interviewed experience a 30 to 50 percent profit margin on incremental take-out sales. The development cost and technical expertise associated with online ordering are considerable and typically cannot be undertaken effectively by individual restaurant owners or operators.

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