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A new ultrafast pizza delivery startup in Philly delivers food in just over 12 minutes on average. Here's how it works.https://www.businessinsider.in/retail/news/a-new-ultrafast-pizza-delivery-startup-in-philly-delivers-food-in-just-over-12-minutes-on-average-hereaposs-how-it-works-/slidelist/97401022.cms2023-01-28T18:16:38+05:30

A new ultrafast pizza delivery startup in Philly delivers food in just over 12 minutes on average. Here's how it works.

Nancy LunaJan 28, 2023, 18:16 IST

Muncho, an ultrafast pizza delivery company, opened in late 2021 in Philadelphia. Locals are going crazy over its speedy delivery times, which average 12.5 minutes.

Former investment banker Adam Chain came up with the idea for Muncho in 2021 after receiving a cold Domino's pizza two hours after ordering. He spent the next two months studying pizza delivery to figure out how to do it better.

Chain launched Muncho two months later on November 16, 2021. Muncho cooks pizzas on demand from ovens retrofitted inside two delivery vans. To keep operating expenses down, the delivery driver is also the cook.

Muncho sells six classic 14-inch pizzas, and one specialty pizza that rotates weekly. Prices range from $14 to $16 per pizza. The average check is $24.

Carlos Aparicio, former head baker at the much-praised Philadelphia French bistro Parc, developed the proprietary recipes and cooking times for Muncho.

"He is known as one of the premier dough experts in the entire city," Chain said of Aparicio. The baker, shown, developed the baguettes at Parc, and now operates a popular Mexican restaurant in Philadelphia.

Muncho also sells fries, cheesy bread, dipping sauces, and bottled beverages such as Jarritos and Coca-Cola.

Muncho par bakes the pizzas and side dishes such as fries in a commissary in Philadelphia. The cooking is completed in the vans while en route to its next delivery, ensuring a hot pie and crispy-not-soggy fries.

Consumers order directly from Muncho's website. There's no app yet, but Chain told Insider he hopes to release it by the end of April.

Muncho targets high-density Philadelphia zip codes of 3,000 people per square mile. That allows the vans to make about 5 deliveries per hour ...

... by contrast, most third-party delivery drivers can perform two or three deliveries an hour, according to reps for The Rideshare Guy, a blog aimed at advocating for gig drivers.

Customers are updated on order status via automated text messages, and are told upfront that tipping is not necessary because drivers are paid a livable wage of $22 an hour, Chain said.

"I still can't get over this," one Instagram fan wrote about his 6-minute delivery.

Muncho customers like the concept because the price is transparent with no tipping required. "The price you see is the price you pay. Customers love it," Chain said.

The Philly-specific pizza boxes were designed by a local artist. As the company expands, new boxes will be designed to pay tribute to every city and college town Muncho expands to, Chain said.

On-demand mobile dining concepts are not new. SoftBank-backed Zume once operated automated-pizza-delivery trucks, but shut down operations in early 2020.

Marc Lore, a former e-commerce exec at Walmart, runs food tech startup Wonder. Wonder's mobile kitchens used to prepare chef-driven meals on demand in New Jersey and New York neighborhoods.

Wonder had plans to expand to a fleet of 1,000 kitchen vans. But in early January, the startup laid off staff and shuttered the on-demand meal service.

Chain said Muncho differentiates itself from Zume and Wonder because its operations are not as complex or costly. Its Dodge Ram vans are much less expensive to operate than Wonder's Mercedes Sprinters, he said.

Muncho vans, which cost about $170 a day to operate, are equipped with electric Avantco pizza ovens. Equipment and labor are less expensive than Zume and Wonder, Chain said.

Zume used high-tech automated pizza bots to cook pizzas.

Muncho recently tapped restaurant industry veteran James Walker to advise the company on its growth strategy. Walker led Nathan's Famous rapid growth during the pandemic by expanding through ghost kitchens.

Chain said one of Muncho's two vans recently became profitable, while the second one is on its way to profitability. Muncho plans to build out its operation in Philadelphia first, before committing to growth outside the city.

Next steps: Muncho plans to add wings and salads to the menu as soon as they develop the right recipes. The company is considering a few growth strategies, including franchising fleets of vans.

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