Taco Bell Speaks Out About Aggregators and Retaining Control of Customer Relationships

Third-party delivery aggregators are emerging as one of the business success stories of the pandemic, and major players have continued to maintain gains. Their expedited rise in importance has also left much uncertainty regarding their future role, with restaurants still dependent on delivery due to customer demand, but those same businesses finding their tight margins further decreased or even overcome by aggregator fees.

Despite increasing vaccinations and easing restrictions, aggregator use remains strong among consumers. Partnering with an aggregator can be a double-edged sword for restaurants, however, as may they help drive order volume and brand exposure, but dig into revenues and risks the loss of control over customer relationships.

The latest edition of the Order To Eat Tracker® examines the drivers behind aggregator use in quick-service restaurants (QSRs) and how restaurants can work to keep pace with aggregators to help strengthen customer loyalty and relationships.

Around the Order to Eat Space

Beginning Jan. 1, 2022, California aggregators will have to abide by new regulations including new fee transparency rules and a requirement that delivery workers keep all of the tips they earn. Supporters hail the upcoming requirements as necessary protections for small restaurants and customers, and the law will require aggregators to completely break down all fees for restaurants and end customers.

TikTok has emerged as a significant strategic social media tool for restaurants. A recent survey showed that 36% of TikTok users visited restaurants that they saw featured on the platform, and 55% of users who patronized a restaurant based on a TikTok said they were most strongly influenced by the visual appeal of the food. Users even said they would travel significant distances for food they saw in a TikTok video, with 20% saying they would drive to a different city and 45% saying they would cross state lines.

For more on these stories and other order-to-eat developments, check out the Tracker’s News and Trends section.

How Taco Bell Works to Keep Control of the Customer Relationship as Third-Party Aggregators Flourish

The digital transition of the past 20 months has given restaurants new ways to engage with customers and hold their attention, which could be key to helping them strengthen customer relationships even as third-party platforms like aggregators remain dominant on the scene. For this month’s Feature Story, PYMNTS spoke with Zipporah Allen, chief digital officer of Taco Bell, about how the chain is tapping loyalty programs and digital subscription offerings to strengthen build direct relationships with customers.

Deep Dive: How the Aggregator Puzzle Piece Fits Into the Future QSR Space

Aggregators were well-established in major markets before the pandemic, but health restrictions and COVID-19 concerns made delivery an even bigger part of how restaurants reach consumers. That saving grace still came with thorns, and many restaurants are struggling to accommodate aggregator fees while still turning a profit. This month’s Deep Dive takes a closer look at the growing use of aggregators to fill the delivery needs of restaurants, as well as what other digital options restaurants are exploring to stay afloat.

About the Tracker

The monthly Order To Eat Tracker®, a PYMNTS and Paytronix collaboration, offers coverage of the most recent news and trends in the restaurant ordering ecosystem.