Big Pizza’s Delivery Moves Turn Up the Heat on Small Pizzerias
Photo Credit: A disparity in price favoring chains could steer customers away from local businesses. Unsplash
Skift Take
Pizza chains inking deals with third-party delivery companies will force independent pizzerias to make a choice: pay more to services to keep order counts coming or unplug and go at it alone.
Mom and pop pizzerias may have beat pizza chains to third-party delivery marketplaces years ago, but added competition from new entrants Pizza Hut and Papa John’s will force operators to choose between paying higher premiums to sustain visibility with customers or ditch services altogether.
Partnerships with Grubhub, Uber Eats, and the like notoriously offer restaurants increased order volume, due to targeted advertising on mobile apps. Business owners can also afford to cut back on in-house drivers, with delivery operations being outsourced. These services, however, already come at a 20 to 30 percent cost in fees per order.
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