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Delivery is on the Rise for Quick-Service Restaurants

Since Chipotle saw a nearly 700% increase in delivery orders after its partnership with Doordash, several quick service restaurants are following the company’s lead and venturing into delivery or expanding existing their delivery service.

Panera broadened its delivery service nationwide, with the program now available in 897 cities and 43 states. Digital sales at Panera, which consist of online, app and kiosk orders, represent 30% of total company sales. The company aims to employ its own delivery drivers in every market, which contributes to the company’s ability to scale and expand its delivery business.

“Delivery is fueling our next phase of growth, and the success we have seen so far is exciting,” said Blaine Hurst, Panera CEO. “The combination of providing clean food options via an entirely digital experience is giving us a real advantage, and the momentum is just beginning.”

Fiesta Restaurant Group will roll out new loyalty programs this summer at its Pollo Tropical and Taco Cabana locations, reported Seeking Alpha (May 7). This will be done in conjunction with new digital delivery, catering and off-premise platforms, which the company hopes will help drive delivery sales. Technology will continue to be a big area of focus for the company moving forward, says CFO and SVP Lynn Schweinfurth.

In addition, Famous Dave’s of America expanded its third-party delivery service at roughly half of its locations, as nearly one-third of the company’s food sales are consumed outside of the restaurant. Same-store sales for the company were up 5.2% in its first quarter, reported Minneapolis Star Tribune (May 14).

Bojangles plans to test delivery in the Charlotte, NC, market, in partnership with a third-party service. The company will test online ordering at one location within the next two months, reported Seeking Alpha (May 9).

For the full story, go to this week’s Food Institute Report.