Consumers love food delivery. But restaurants and grocers hate it

Along with Kroger, Target Corp. and Walmart Inc. are spending billions of dollars to develop their own delivery systems. The retailers have seen their margins suffer in recent quarters as a result

Consumers expect to order books, toys, shoes and anything else they want online and have it show up at their doors quickly and inexpensively. Restaurants and grocers are rushing to satisfy the exact same demand. They’re having a hard time.

A hungry customer in Denver might order a $9.99 Cuban sandwich from Panera Bread Co., which can arrive at her door in about 30 minutes.

The problem for Panera is that each delivery costs about $5 after accounting for labor, gas and packaging. Yet to avoid turning away customers, it continues to charge a flat delivery fee of $3 per