Sunday, May 7, 2017
Chains are banking on this new strategy to combat the restaurant apocalypse
Struggling restaurant chains are turning to a new strategy to try and appeal to customers: delivery.
In the era of GrubHub and Seamless, convenience is increasingly important in the restaurant business. Americans order 1.7 billion meals online every year and one-fourth of people claim to have ordered a meal via delivery in the past three months.Meanwhile, restaurants are struggling to convince customers to eat out. In the first quarter of 2017, industry-wide same-store sales dropped 1.1%, while traffic fell 3.4%, according to Nation's Restaurant News. McDonald's is testing delivery through UberEats in multiple cities across the US, with the most recent trial run in Pittsburgh announced last week. On Monday, Wendy's launched delivery at 135 locations in Ohio. Panera Bread is rolling out delivery at 35 to 40% of its locations this year, the company announced in January. While delivery is clearly a compelling option to offer, it isn't a simple service for restaurants to add. Customers often spend less when ordering delivery, especially at casual dining chains that rely on alcohol orders to drive sales.
Full article here (http://www.businessinsider.com/chains-invest-in-delivery-to-combat-sales-slump-2017-5)
Do you think that this strategy could work? What are some other options to attract customers and generate more revenue?