100% Home Delivery/Takeaway in the US

PROSPECTS

Risks for delivery pioneers

Previously dominated by pizza and Asian cuisine, the growth of delivery in other channels has fortified consumers’ demand for convenience, whilst being able to eat restaurant-quality food in their homes. 100% home delivery/takeaway now competes for customers as well as resources; resources include drivers.

Alcohol adds a new revenue stream

Having established delivery well before other channels, some 100% home delivery/takeaway chains and third party delivery platforms have looked to add new revenue streams, especially as delivery costs are expected to increase. In particular, chains such as Pizza Hut have been exploring the delivery of alcohol, including wine and beer.

Mobile ordering grows as price wars rage

Mobile sales play such a large role in 100% home delivery/takeaway pizza chains that many are rebranding themselves as tech companies, instead of pizza companies. The growth of mobile ordering is also taking place in the context of a plethora of new payment options, from Papa John’s accepting PayPal to Domino’s taking orders via text and Twitter.

COMPETITIVE LANDSCAPE

Domino’s to help customers mark special occasions

Always at the cutting-edge of using technology in its operations, such as an online pizza tracker, it came as no particular surprise that Domino’s Pizza offered wedding and baby registries in 2017. Cynics may discard the move as simply a marketing ploy, but there may be more than meets the eye.

Little Caesar’s finds a solution to the delivery craze

At the same time as other pizza chains are trying to keep up with delivery demand, Little Caesar’s is taking a step back. The big reason behind Little Caesar’s decision is that it already has a popular, profitable model with its Hot N’ Ready pizzas, without the added costs and risks associated with delivery.

Politics is a dangerous game to play

For several years now, companies have been aware that brands and products associated with social causes can have great benefits. However, the tactic can be a double-edged sword, as Papa John’s found out.

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