Starbucks Partners with DoorDash; SkipTheDishes Lays Off 350 Employees

After years of being conspicuously absent from the DoorDash marketplace, Starbucks is finally appearing on the platform.

The coffeehouse chain, the world’s largest restaurant company by revenue, revealed Tuesday (Sept. 13) that it has partnered with the United States’ leading aggregator as part of a series of changes comprising the company’s Reinvention plan. The partnership will roll out nationally next year.

The brand has not been completely averse to third-party delivery in the past. In July 2019, the company announced a partnership with the United States’ second-most popular aggregator, Uber Eats, listing the company as the “preferred delivery provider.” Back in 2015, the coffeehouse chain partnered with Postmates, now owned by Uber.

The vast majority of aggregator customers order from DoorDash and/or Uber Eats, according to research from the March/April edition of PYMNTS’ Digital Divide study, “The Digital Divide: Regional Variations In US Food Ordering Trends And Digital Adoption.” The report, which drew from a February survey of more than 2,500 U.S. adults who regularly purchase food from restaurants, revealed that seven in 10 aggregator customers had purchased from DoorDash in the previous month. Additionally, nearly half had done so from Uber Eats.

Bloomin’ Brands Unveils Cross-Brand Grubhub Partnership

In related news, Bloomin’ Brands, parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar, announced Thursday (Sept. 15) a partnership with number-three aggregator Grubhub to offer delivery from all its brands. Before this deal, only a limited number of Carrabba’s Italian Grill locations were available for delivery via the aggregator.

This announcement makes 1,000 physical restaurant locations and 700 virtual locations available on the aggregator’s marketplace.

“This amplified partnership allows us to continue to expand our omni-channel off-premises approach and bring our well-known, favorite brands to even more guests,” Sheilina Henry, Senior Vice President of Diversity, Equity & Inclusion and Off-Premises Dining at Bloomin’ Brands, said in a statement.

The news is in part notable because some casual dining brands (such as those of Olive Garden parent Darden Restaurants) have been hesitant about third-party delivery, expressing caution about the pressure it could put on margins and about diverting focus away from the on-premise experience.

Bloomin’ Brands, for its part, has been prioritizing efforts to meet demand for delivery while maintaining profitability.

“Third-party delivery continues to grow even as people are returned to in-restaurant dining,” Bloomin’ Brands CEO David Deno told analysts on a call in July. “Importantly, profit margins in this channel are comparable to margins of the in-restaurant business. This is the result of initiatives that were completed in the past few quarters.”

SkipTheDishes Lays Off 350 Employees

Indeed, the economics of third-party delivery remain a challenge for all parties. Just Eat Takeaway’s Winnipeg, Canada-based subsidiary SkipTheDishes has recently laid off 350 employees in its home city, according to a Canadian Press report Monday (Sept. 12).

SkipTheDishes senior communications manager Hannah Korsunsky told the outlet that the layoffs concerned remote contact center employees whose work involved multiple of the company’s markets around the world. The decision follows a “comprehensive review of its global logistics workforce” from the aggregator’s parent company.

Burger King Invests $250M in Upgrading Restaurants

Restaurant Brands International, parent company of quick-service restaurant (QSR) giant Burger King, announced last week (Sept. 9) a $400 million investment in the future of the burger chain, which includes $250 million to undertake a so-called “Royal Reset.” This reset includes technology upgrades and changes to the brand’s physical stores in an effort to boost efficiency, and consequently improve the customer experience and drive traffic.

The company did not specify what tech investments will be made but noted that it will be supported by a “co-investment from franchisees” and that it will “lay the foundation for sales and profitability growth in the years to come.”