What did the founders of delivery hubs recognize as the largest barrier to entry for new food concepts besides culinary skill?
Answer
Commercial real estate zoning and build-out costs
The insight driving the scaling of shared commissary space by former tech executives was recognizing that the primary barriers preventing new food concepts from launching were logistical and financial, rather than culinary talent. Specifically, they identified the high capital expenditure required for securing commercial real estate, navigating complex zoning requirements, and undertaking extensive physical build-outs as the major inhibitors. The success of the shared model was predicated on selling access to infrastructure, thus transforming a high-risk, capital-intensive endeavor into a lower-risk, scalable service model.
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Related Questions
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