Fast Food Restaurants Placing their Bets on Delivery

Austin Bob

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Dec 15, 2018
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Link to story. Apparently, we delivery drivers are going to be much more in demand in 2019 as the likes of McDonald’s and Chipotle are placing their bets on more delivery business.

It’s not going to get much easier for the restaurant industry.

After facing stagnant sales and weak customer traffic in 2018, restaurants will encounter more headwinds next year — including rising food and wage costs — that may stall profit and hinder efforts to jump start growth.

Even industry stalwarts are dealing with such issues in a fiercely competitive and increasingly crowded field. Starbucks is shuttering some U.S. locations amid oversaturation worries.

McDonald’s, the world’s largest restaurant company, has been tweaking its value offering to stay popular in the price wars and expanding delivery with Uber Eats to spur sales.

But it wasn’t all doom and gloom this year. Amid a stock market rout, restaurant stocks fared better than the broader market, bolstered by a couple of standouts such as Domino’s Pizza and Chipotle Mexican Grill.

Chipotle, while far from reclaiming its position as a Wall Street darling, is beginning to recover following a string of food-safety issues that damaged the brand.

Delivery and Packaging
Americans are demanding delivery, and it’s forcing big chains to get into the game. That can mean costly technology investments.

Revenue from orders through third parties is often shared, making it more difficult to turn a profit on digital customers. It also means delivery doesn’t necessarily make sense for low-cost items.

Starbucks tried delivery this year in Florida with Uber Eats, and is now expanding it to almost a quarter of its domestic company stores. Delivery is attractive to companies because to-go orders usually mean customers spend more. Applebee’s and IHOP say the average check is “significantly” more.
 

Austin Bob

Member
Dec 15, 2018
116
7
18
What City & State do you work in?
San Antonio
omg you really are a crank. your name is fitting.
 

Graham

Member
Feb 4, 2019
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What City & State do you work in?
Glendale AZ
I'm willing to bet that cooks and servers at restaurants aren't too psyched about the spike in deliveries. Means less tips for them.