June 24, 2019 by freemexy
Pizza Chains Seek Outside Help as Food-Delivery Market Grows
Papa John's International Inc., trying to recover from its deep sales slump, is using DoorDash Inc. in more than 1,300 of its locations. It will be expanding that partnership in the coming months, Chief Executive Officer Steve Ritchie said after the pizza chain reported revenue that missed analysts' estimates.
Delivery specialists like UberEats "have been growing their overall share of the restaurant industry over the last 12 months. We don't want to lose our customers," Ritchie said in an interview. "Our goal is to certainly convert those customers over to a Papa John's platform."
The company has been working with DoorDash since July 2018 and also works with Postmates Inc. The chain has been exploring working with other delivery specialists as well, a company spokeswoman said in an email.See Also: Papa John's Short Sellers May Get Burned as Worst Fears Averted
"The competitors of the pizza chains were previously other pizza chains," said KPMG managing director Andrew Nolan. For the convenience of having food delivered straight to the door, "pizza was the only main option." But that's changed, with other restaurants delving into delivery at full speed and "broadening the options available to the customer," he said.
Pizza Hut, meanwhile, has turned to Grubhub Inc. for help improving and expanding delivery. The pizza chain's parent, Yum! Brands Inc., invested in the delivery company last year, and Pizza Hut pies can now be ordered through the Grubhub mobile app.