Food delivery services like Waitr, 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 says.
Jimmy John’s is swimming against the tide for now, at least. Starbucks recently announced it’s expanding delivery to more U.S. stores through its partnership with Uber Eats. Taco Bell said Thursday it will offer delivery nationwide through Grubhub.
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% per order; Uber Eats charges as much as 30%. Service can be haphazard; some drivers have coolers to keep food chilled, for example, while others don’t. Read the full story.