Some restaurants resist third-party delivery
Food delivery services like Uber Eats and Grubhub are taking off like a rocket. But some restaurants aren’t on board.
This week, Jimmy John’s sandwich chain launched a national ad campaign promising never to use third-party delivery. Jimmy John’s says its own drivers — which number around 45,000 at its 2,800 U.S. restaurants — can best ensure fast, quality service. “We just don’t trust anybody else to deliver our product,” Jimmy John’s President and CEO James North told The Associated Press.
Others besides Jimmy John’s have rejected third-party delivery, including Domino’s, Panera Bread and Olive Garden. In some cases, it would disrupt their long-established business models; Domino’s has been delivering pizzas for 60 years. Other companies just aren’t convinced. Olive Garden tested third-party delivery but says its customers weren’t satisfied.
There’s a lot for restaurants not to like. Delivery services eat into their profits. Grubhub charges them a commission of 12 to 18 percent per order; Uber Eats charges as much as 30 percent. Service can be haphazard ...Their model isn’t completely ironed out yet to deliver a consistent experience.
Boston Consulting Group found that four of the most popular services — Uber Eats, Grubhub, Postmates and DoorDash — averaged 49 minutes to deliver an order. Liz Meyerdirk, Uber Eats’ head of global business development, says Uber Eats averages 31 minutes.
Jimmy John’s average is less than 20 minutes ... Jimmy John’s charges customers around $2 for deliveries — some third parties charge $8 or more.
Lengthy article at:
https://www.apnews.com/36be30dc1c944101a310bef3e79eca7a
