Discussion Question 5_13

There are certain areas of the country that are so rough that Domino’s, Pizza Hut, and many other restaurant chains will not deliver to them. Imagine that a local entrepreneur has started a company called “Homeboys Restaurant Delivery and Catering Service,” that will deliver to these areas. With a bank of phones and two drivers, the company picks up at the restaurant of your choice and delivers to your doorstep. Its drivers use late-model, inconspicuous used cars. Homeboys run a tab at the restaurants and pays weekly for food picked up by its drivers. Customers are charged a $3 delivery fee on $10 minimum orders. Its drivers hand out flyers with the Homeboys logo and the names of participating restaurants. Each driver also has the menu from those restaurants. Evaluate the effectiveness of Homeboys in terms of the intangible and/or variable elements of people, physical evidence, and service standards. (26 points) (A 1½-page response is required.)