Fast food companies are betting big on delivery. It might not pay off
CNNNew York CNN Business — This is the golden age of food delivery. The shift to delivery is “profound,” said Noah Glass, founder and CEO of Olo, a business-facing food ordering platform that works with restaurant chains and delivery aggregators like Uber Eats.“It’s happening incredibly quickly and the stakes are incredibly high.” Partnering with delivery platforms can give restaurants access to a whole new set of customers. Pizza Hut plans to close 500 restaurants in the United States to “accelerate the transition” to locations better suited for delivery and takeout, outgoing CEO Greg Creed said during a recent earnings call with analysts. The pizza chain’s sales have been suffering recently in part because of “aggressive activity from third-party delivery aggregators,” said CEO Richard Allison during a call with analysts discussing second-quarter earnings. “That’s the biggest thing.” Ultimately, Hottovy predicts that restaurants will come up with a “hybrid” approach, relying on outside delivery services during off-peak hours and using their own drivers otherwise.