Articles tagged “grubhub”

Third-party ordering and delivery services are starting to power big chain pizza delivery, a big departure from the in-house strategy we've come to know.

Independents and mid-sized chains are very reliant on delivery companies, as they are too small to launch delivery channels of their own, and a failure to offer the channel would result in large amounts of missed revenue and new customers.

After much shareholder pressure to deliver, Yelp was ready for its moment in the sun after reporting earnings that easily topped Wall Street's estimates.

This move makes sense for Pizza Hut, solely because Grubhub already operates the off-premise businesses of sister chains Taco Bell and KFC. So what if its industry pizza rivals with proprietary delivery make fun of it?

It's no surprise that Grubhub is going after more enterprise restaurant relationships this year, and it says that it's the one to beat when it comes to the variety of technology support that it can offer to the nationwide chains.

For the restaurateurs who can afford the upfront development costs, investing in a proprietary delivery system offers way better profit margins — and, often, a better customer experience — than third-party delivery services.

As they race to dominate in the market, third party delivery companies are targeting large, suburban markets to fuel expansion. National chain partnerships boosted these efforts in 2018 and will continue to drive growth in 2019.

Yum Brands' size and scale allows it to negotiate much better deals on delivery partnerships, as executives outlined during the company's annual investor day. No wonder Taco Bell and KFC franchise owners are so excited to participate in the Grubhub integration.

The tech giant's restaurant business arm hasn't grown very much, perhaps by design, but an acquisition or two can change that.

Growth of delivery can be measured in leaps and bounds across the industry as companies expand their national footprints, restaurant partners, and technology to cover increased demand at a time when the limits feel boundless.