Grubhub to handle online orders, deliveries for Taco Bell, KFC
Grubhub will soon handle online and delivery orders for Taco Bell and KFC stores in the United States, a move that Louisville-based Yum Brands hopes will boost sales at the fast food restaurants.
LOUISVILLE, Ky. (WDRB) -- Grubhub will soon handle online and delivery orders for Taco Bell and KFC stores in the United States, a move that Louisville-based Yum Brands hopes will boost sales at the fast food restaurants.
As part of a five-year partnership announced Thursday, Yum will invest $200 million in Chicago-based Grubhub, providing cash for the young company to expand its footprint and integrate thousands of KFC and Taco Bell stores into its system.
Yum and Grubhub have had good results while testing the system in KFC stores in Louisville as well as Indianapolis and Omaha, Nebraska, Yum CEO Greg Creed said on the company quarterly earnings call Thursday.
“What delivery promises in these very early test markets, the guys and the girls that are actually running it on a daily basis are seeing that benefit,” Creed said, referring to KFC franchisees and their in-store employees. “We’re encouraged by that.”
Grubhub’s web site shows delivery options for KFC in the Louisville area for a $2 delivery charge on orders of at least $10.
Grubhub, which handles orders and provides drivers for restaurants, charges various fees and order minimums, depending on the restaurant.
The agreement does not involve Yum’s other brand, Pizza Hut, for which delivery is already handled in-house.
But Pizza Hut U.S. President Artie Starrs will join Grubhub’s board of directors and provide guidance to the fast-growing company.
Pizza Hut is “one of the best operators of delivery out there,” Grubhub CEO Matt Maloney said Thursday on the company’s earnings call.
Fueled by cash from Yum, Grubhub expects to expand its 80 restaurant markets to 180 by the end of the year, executives said.
The deal does not preclude Grubhub from partnering with Yum competitors, they said.
Yum executives largely sidestepped an analyst’s question about whether the deal could threaten Pizza Hut by making it easier for Grubhub to facilitate delivery for competitors.
They said Pizza Hut, too, will benefit from larger consumer shift to ordering online and delivery.