Pizza Hut and Grubhub Team Up for Delivery Pilot Program
Introduction:
Pizza Hut, the beloved nationwide pizza chain, is breaking new ground by partnering with Grubhub, a popular third-party delivery provider. This unexpected move signifies a potential evolution in pizza delivery services, as Pizza Hut aims to tap into Grubhub’s extensive customer base without compromising its own fleet of drivers. With plans to expand the pilot program to several hundred stores in the coming months, this partnership could be a game-changer for Pizza Hut.
A Strategic Collaboration:
Pizza Hut’s decision to join forces with Grubhub is a strategic move to boost sales and attract new customers. Grubhub, which processes a staggering 125 million orders per year, offers an enticing opportunity for Pizza Hut, especially considering its recent lackluster performance compared to its sister brands, Taco Bell and KFC. While Pizza Hut saw a mere 1% growth in worldwide system sales last year, Taco Bell and KFC both reported a remarkable 6% growth.
Yum Brands’ Expanding Delivery Footprint:
Yum Brands, the parent company of Pizza Hut, is no stranger to partnering with Grubhub. The company has already rolled out delivery via Grubhub at its KFC and Taco Bell locations nationwide, and it seems keen on leveraging this technology across all three of its iconic brands. Yum Brands has already invested a substantial $200 million in Grubhub, making it clear that they see the potential in this collaboration.
Puzzling or Promising?
On the surface, Pizza Hut’s decision to team up with Grubhub may seem puzzling, as pizza and delivery have long been synonymous. With many consumers already ordering directly from their favorite pizza brands’ apps and websites, it raises questions about the need for a third-party provider. Pizza Hut has made significant strides in improving its own delivery capabilities, reducing delivery times by an average of three minutes last year. Furthermore, the acquisition of QuikOrder, an online service provider, has enabled Pizza Hut to streamline its own e-commerce platform. So why venture into the realm of third-party aggregators, which often take a portion of sales?
A New Frontier for Pizza Chains:
Pizza Hut’s collaboration with Grubhub is a first for major pizza players, with Chuck E. Cheese’s being the only other nationwide pizza brand to offer delivery through third-party providers. Independent pizzerias have been quick to embrace third-party apps, recognizing the advantages of partnering with regional chains that don’t have the resources to develop their own delivery systems. However, major chains like Domino’s and Papa John’s have taken a different approach, focusing on enhancing their proprietary technologies. In fact, Domino’s recently announced that they will never work with third-parties.
The Future of Pizza Delivery:
Only time will tell how this groundbreaking partnership between Pizza Hut and Grubhub will unfold. Pizza Hut’s brand strength and delivery technology will be put to the test as they incorporate Grubhub’s assets into their system. If successful, this collaboration has the potential to revolutionize the way pizza chains approach delivery services. Keep an eye out for updates on this exciting new venture!
Don’t forget to check out Hook’d Up Bar and Grill for more delicious dining experiences!