Welcome back to the Restaurant Technology Guys Podcast! Today, we dive into a topic that’s become increasingly critical for restaurateurs—delivery services. Our special guest Anand Tumuluru, an AI researcher turned restauranteur, brings valuable insights on making delivery profitable. Let’s take you through our enlightening conversation.
Introduction to Delivery Complexities
Jeremy: “Today, we’re talking about delivery and all it entails. Our guest is Anand Tumuluru. Anand, could you introduce yourself and share how you got into restaurant tech?”
Anand Tumuluru: “Sure, Jeremy. I started my career as an AI researcher and later worked at Flipkart and Uber, seeing the dramatic growth of delivery services. Concurrently, I’m also a restauranteur with a couple of locations. The world of restaurants is fascinating and unique—once you’re in it, you’re hooked.”
Addressing Delivery Profitability with Loop.AI
Jeremy: “The topic of today’s conversation is delivery and its intricacies, both operationally and financially. Could you introduce our listeners to Loop.AI and its origins?”
Anand Tumuluru: “Absolutely, Jeremy. Loop.AI was born from a need to understand and improve the financial health of small restaurants. During the pandemic, delivery became a primary revenue stream for many restaurants, but understanding its profitability was a significant challenge.”
Anand Tumuluru: “Most of the partnership restaurants we worked with were unsure about their delivery profits. They couldn’t see the financial gains despite increased orders and revenues. That’s where Loop.AI steps in, providing a sophisticated financial foundation and operational levers to ensure restaurants understand and optimize their delivery profits.”
Navigating Restaurant Accounting Complexities
Anand Tumuluru: “Restaurant accounting is complex, with challenges such as sales tax liability, payroll taxes, and understanding channel-specific revenue. Loop.AI automates the reconciliation process, helping restaurants see a clear picture of their financial health.”
Jeremy: “One critical aspect is taxation. How do you ensure restaurants understand and comply with tax laws, which can be convoluted across different regions?”
Anand Tumuluru: “We track tax liabilities at an order and payout level. This ensures restaurants aren’t overpaying or double-taxing, which is unfortunately common. Loop.AI automates entries in QuickBooks or Restaurant 365, simplifying this process significantly.”
Third-Party Delivery Services: The Variability and Complexity
Jeremy: “Different delivery service providers (DSPs) have unique rules, outputs, and dashboards. How can restaurants manage this complexity?”
Anand Tumuluru: “While DSPs like DoorDash and Uber Eats have streamlined many processes, the diversity in payout structures, marketing spends, and tax implications creates a complex landscape. Loop.AI integrates these diverse data points, simplifying understanding through a unified dashboard.”
Jeremy: “Restaurants often differ in their understanding and execution of delivery services. Are Loop.AI’s insights specific to certain types of customers?”
Anand Tumuluru: “Any restaurant with a notable portion of its revenue from delivery can benefit from Loop.AI. We help finance teams, CFOs, and outsourced CPAs manage reports and close books efficiently, directly integrating our insights into their existing accounting software.”
Enhancing Marketing and Operations with Data
Jeremy: “Effective marketing on DSPs is crucial but often challenging. How does Loop.AI help restaurants navigate marketing spends?”
Anand Tumuluru: “We provide detailed insights into the return on ad spend (ROAS), helping restaurants make informed decisions. For instance, understanding the true incremental revenue from marketing and avoiding unnecessary spends ensures restaurants aren’t giving away free food.”
Anand Tumuluru: “Moreover, increasing visibility on DSPs doesn’t always mean higher conversions. We help restaurants fine-tune their marketing strategies, leveraging data to ensure each dollar spent aligns with their revenue goals.”
Final Thoughts and Engagement
Jeremy: “How do restaurants start using Loop.AI and what can they expect from your services?”
Anand Tumuluru: “Onboarding Loop.AI is straightforward and quick. We provide an income statement analysis, set goals, and start seeing improvements in profitability within a week. We support brands in understanding their market spends, correcting discrepancies, and ensuring optimal financial health.”
Jeremy: “Loop.AI is solving a critical problem in the restaurant industry. Thank you, Anand, for sharing these insights.”
Anand Tumuluru: “Thanks, Jeremy. It’s been a pleasure.”
Jeremy: “To our listeners, thank you for joining us. Please provide feedback, subscribe to our show on YouTube or your favorite podcast platform, and check out Loop.AI for more information. Make it a great day!”
In this high-tech evolution of the restaurant industry, understanding and managing delivery services’ financial and operational aspects is crucial. Tools like Loop.AI are invaluable, providing restaurateurs with the clarity and control needed to thrive in the delivery-centric market.
