Wendy’s partners with DoorDash to expand delivery to 48 markets.
The chain saw a decline in same-store sales at corporate units, but its stock has also increased by 33% in the last 12 months.
Quick serve chains have always catered to the on-the-go consumer. When a guest is short on time, visiting a QSR is often an attractive option because they are convenient and fast.
But now restaurants from all segments are offering online ordering and even delivery, giving today's consumer so many more options to choose from that are equally, if not more, convenient and easily fit into a busy lifestyle.
Not to mention, the grocery stores have been upping offerings in terms of hot foods and on-the-go-options.
So it’s safe to say, the competition is fierce.
With that being said, we are seeing QSR chains making a push to offer delivery and most are partnering with third party services to do so. McDonald's, for example, has partnered with UberEats.
Wendy's started testing delivery by partnering with DoorDash earlier this year in central Ohio and Dallas, Texas. Now, the chain is going to expand delivery to 2,500 of its stores in 48 markets.
This is only one third of all of Wendy’s stores, but when DoorDash expands its service areas, the QSR chain could offer delivery at even more stores.
So what influenced the decision?
Well, delivery has led to higher average checks. Most DoorDash orders aren’t just ordering to get a meal for themselves when they get delivery. Instead, they are ordering for a group.
Also, the brand is trying to capture all possible customers, which is especially important after reporting a weak third quarter earnings.
Wendy's corporate stores saw a decline in same-store sales, which can be attributed to the rough hurricane season and the especially competitive restaurant landscape. The overall sales for the quarter were $308 million, versus the $364 million made the year prior. However, the company sold 249 stores to franchisees this year.
The chain’s stock has also increased by 33% in the last 12 months.
Expanding delivery is Wendy’s latest move to keep up not only with other fast food chains, but with the rest of the industry.
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