Both Dunkin & Yum Brands took advantage of their conference call on Thursday to announce new developments in delivery.
McDonald's has expanded delivery to more than 19,000 locations worldwide through a partnership with UberEats, which has just celebrated its biennial anniversary. In the last two years alone, delivery has become $ 3 billion for the fast food chain.
McDonald's US franchisees, however, expressed their dissatisfaction with UberEats' orders and added them to a list of other company decisions that, in the opinion of the restaurant owners, are not in their best interests.
Last year, the franchisees founded an independent organization called the National Owners Association to deal with their frustrations. A recent survey by the group found that 785 franchisees said they would support negotiations on better commission rates between Uber Eats and McDonald's, Skift Table reported. About Eats charged according to Skift commission rates between 15 and 20 percent. In the survey, 565 operators stated that the delivery did not generate positive cash flow for their business.
"The company's position does not require additional labor for Uber Eats and we would like to differentiate," the NOA Board said on a post on the group's website. "Once you add work to the equation, there is no cash flow for the owners."
Partnering with a delivery platform means the restaurants lack customer data. Most arrangements do not give restaurants access to data on customer orders, said Dylan Bolden, managing director of the Boston Consulting Group.
Even restaurants lose control of the customer experience, but are still on the hook It comes to their reputation when customers' orders are cold.
"The risks are – if you're a brand that thinks about extradition – how can you control that experience if you use a third party," Bolden said.
For example, Starbucks must ensure that the drinks prepared for delivery are hotter than normal to ensure that customers are reached at their usual temperature. The company has teamed with e-commerce giant Alibaba to deliver its drinks in China and is expanding its US pilot program with UberEats. It started on Monday with delivery in Chicago and Boston and joined three other cities.
The coffee giant is well on its way to achieving its goal of delivering in nearly a quarter of its stores by spring, but it still adapts to the changes that comes with the delivery of its hot and cold drinks. In China, customers have an average waiting time of 19 minutes. Rosalind Brewer, Starbucks Chief Operating Officer, told analysts at his recent quarterly conference call.
Despite commission rates and delivery costs, Bolden still believes in a delivery Good financial idea for most restaurants as long as demand is incremental. He said for most restaurants, delivery demand was about 75 percent.
He worked with sandwich maker Jimmy John's, who has been delivering his food for 36 years with his own drivers to decide whether the company should consider outsourcing. The sandwich company, which employs more than 45,000 deliverers nationwide, decided that switching did not make sense.
For restaurant chains like Jimmy John's, which have been shipping their own delivery for decades, they mostly stay at the store
Richard Allison, CEO of Domino, said on CNBC last month that the pizza chain would only hire their own drivers to maintain control over quality and customer experience.
Instead of switching to an external service, Domino's makes investments in the delivery. To shorten the average delivery time, the company has opened more locations across the country, a strategy known as the "fortress".
Jimmy John & # 39; s even even uses his decision to handle his own supply orders to launch a national advertising campaign this week.
"If you look at the key things that customers are looking for with speed, care, and accuracy, the study showed that we are winning in all of these things," said John Shea, his chief marketing officer. "We have acquired this advantage that we have built over the past 36 years."
In the long run, Bolden predicts that some restaurants will use third-party platforms only for last-mile delivery. Chipotle has already begun using Doordash to sell customers' burritos after being ordered in the Mexican food chain.