Chipotle, Applebee's, and Other Chains Turn to Delivery to Survive

Delivery is slowly becoming a customer expectation. With that in mind, quick-serve and fast casual chains are jumping on the delivery bandwagon.

Earlier this week, we reported that Panera rolled out national delivery and made the conscious decision to not partner with a third-party to keep more of the profits made from delivery. 

"We do make money with delivery, but a lot of the restaurants that are using third parties, they don't make that much more," said Blaine Hurst, Panera CEO to "Business Insider." "What it is, is they don't believe they have a choice."

Although the third-party services have made it easier for brands to offer delivery, they cut into profits and the brand loses some of the control of these orders. Ultimately, it's up to the third-party's delivery driver to get the food and bring it to the guest in the estimated time frame. So the service aspect is dependent on the delivery provider, not the restaurant. 

UberEats, for example, takes a 30 percent cut, plus the platform also collects a $4.99+ delivery fee from the customer. 

With that being said, there are still several benefits to offer delivery, even on these platforms. 

"Applebee's, for example, managed to grow sales 3.3% in the most recent quarter in the US due primarily to an increase in orders," writes "Business Insider." "Across the industry, most executives report that customers spend more when ordering, especially online. According to Moe's Southwest Grill president Bruce Schroder, groups are more likely to order delivery or catering at the chain, meaning a larger check size."

But chains have also had to accommodate for more take-out and delivery orders. Chipotle has dedicated a second line to fulfill these orders. 

"One of the first things I uncovered was the second make line," said   Brian Niccol, Chipotle's new CEO. "I was just like, this is a huge ... capability that we have not been taking full advantage of."

But with more orders being delivered directly to homes and offices, the more difficult it has been to bring customers inside stores. 

Learn more about the delivery revolution at "Business Insider."