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There is nothing defensible about this business model. It's entering a crowded category with entrenched players who have far deep pockets and can negate all of this startup's so-called advantages. It's really about the worst kind of business to enter besides the restaurant industry.

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In that case they need to negotiate with Washington first, to remove the legislation that sets them apart from this startup.

Why restaurant business is bad for you?

No OP, but restaurants are the most competitive industry possible. Anyone can start a restaurant, and lots of people want and can do it. Because it's intrinsically a physical business, the market reach is limited to a small area unless it's in downtown or a highly trafficked area - where it also costs a lot more in rent.

There's almost no way to make a restaurant profitable as many restaurants are a labour of love, basically.

As an interesting historical legend, Sequoia Capital invested in Il Fornaio, an Italian restaurant chain. It's not a grand concern but it has endured as an okay restaurant. Darden, OTHO, is a sizeable corporation that's growth oriented and has acquired some good regional chains. McDonald's, etc. are really real estate companies.

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