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Analyze rising delivery costs for a restaurant

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Your question is Analyze rising delivery costs for a restaurant. Take a moment with it on the right.

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Problem

You run a restaurant and find delivery cost has risen significantly. How would you analyze it? Asked in the hiring manager screen stage. The candidate clarified that delivery means rider pickup to customer handoff, while the hiring manager expected ingredient and packaging costs to be considered too.

Requirements

  1. Define the relevant delivery-cost metric and its scope.
  2. Decompose the increase across rider delivery, ingredients, packaging, order mix, and operational factors.
  3. Identify the data needed, validation checks, and highest-priority hypotheses.
  4. Recommend actions and guardrail metrics to determine whether costs improve without harming customer experience or profitability.

Data Available

Order-level records, item prices and ingredients, packaging usage, rider invoices, delivery timestamps and distances, restaurant location, customer location, promotions, refunds, cancellations, order channel, delivery provider, and customer ratings.