Panera’s 2016 self-delivery pilot has stopped, writes Restaurant Business. The fast-casual restaurant started phasing out its channel during the epidemic as delivery sales rose. Panera didn’t react by press time.
Chris Correnti, SVP of off-premise channels, stated the move away from self-Panera delivery “enables Panera to provide a greater delivery range to service rising demand”
PANERA DELIVERS WITH DOORDASH AND GRUB HUB
Panera collaborated with Door Dash, Grub hub, and Uber Eats in 2019 to extend its off-premise reach but used its own fleet in most cities. A huge discount is available on Panera promo code. The restaurant said keeping to its own delivery system made economic sense, but alternative routes allowed additional access, especially to residential guests and nighttime daypart orders.
DIVE INSIGHT
In 2016, Panera provided in-house delivery at 15% of its 2,000 locations. In 2017, it employed 10,000 delivery drivers and café personnel to assist control delivery expenses.
Panera delivery business grew more than 100% last year, according to Restaurant Business. Over half of the chain’s sales now come via pickup, drive-thru, and curbside. In 2018, 29% of the company’s sales were digital.
THIRD PARTY DELIVERY
Panera’s sales volume allows them to negotiate reduced delivery prices. According to Techonomic, Panera has 2,160 units and $5.9 billion in revenue in 2019. Third-party delivery costs may be as high as 30% for large restaurants.
RAISE MENU PRICING
Panera has upped delivery menu pricing by 12%. If Panera’s consumers are prepared to pay higher Panera delivery fees, the chain might switch to third-party delivery, particularly because the restaurant labor market is tight and salaries are rising in many cities.
These two factors might dissuade delivery hybrid models throughout the sector, as chains may be lured by delivery platforms’ statewide expansion while customers continue to use third-party applications. The epidemic increased third-party delivery app income between April and September 2020, even as customers ordered from restaurants directly.
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ADVANTAGE OF THIRD-PART DELIVERY
Panera’s operational overhaul is surprising, despite the advantages of third-party delivery. The restaurant has modeled lucrative in-house delivery for five years and exploited its own infrastructure while adding aggregation relationships. Dan Wegiel, Panera’s chief growth and strategy officer, told Forbes in 2019 that the agreements were “only viable because we have our own drivers.” We kept our own drivers for service and budgetary reasons.
They didn’t use Door Dash’s self-delivery option, which allows businesses to build demand while employing their own drivers.
PANERA OFFERS FREE DELIVERY ON $15 ORDERS UNTIL MARCH 31
The Panera hopes to help reduce the tension surrounding dinner times as more families stay in together. The Panera announced today that it will provide free Panera delivery on purchases of $15 or more until March 31. Enter the offer code free delivery at checkout to have better-for-you food delivered to your home.
Families that are trying to provide nutritious meals during the economic crisis are under a lot of pressure. Panera’s CEO, Niren Chaudhary, says, “Panera decreases stress and makes healthy meals more accessible.” Everyone will love the fresh, fast meal that Panera can provide. We’re also making sure to provide the same quality food you’d get in a Panera restaurant.
PANERA BREAD’S UNIQUE DELIVERY SERVICE MAY BE BRILLIANT. EXPLAINED
It’s no small task, with 2,000 outlets and a $15,000 price tag for each, Risky. It makes more sense when contrasted to what some of the chain’s rivals are doing, such as outsourcing Panera delivery with Uber Eats, Post mates, and Door Dash, Caviar, and Grub hub.
According to a corporate news statement announcing the extension of the service this week to over 900 U.S. cities, it would create 13,000 employees, or seven or eight for each Panera Bread that offers delivery.
DATA, MONEY, AND WORK
This makes more strategic sense for Panera than joining Uber Eats or another rival for three reasons.
Economics first. Bloomberg says “Uber Eats helps eateries swiftly start online ordering and delivery. Third-party companies receive a share of each purchase and potentially manage customer data.”
PIZZA-LIKE
Pizza franchises and other independent businesses use a similar Panera delivery method. Panera’s CEO, Blaine Hurst, was a Papa John’s executive.
He “helped the pizza business establish online ordering in the late 1990s” and estimates 80% of Panera’s online delivery customers wouldn’t have come in otherwise. Not having that volume is pointless, as Hurst put it.
PANERA EXPANDS DELIVERY SERVICES
Panera Bread Co. recently made headlines when it announced it was partnering with major food delivery services Door Dash, Grub Hub, and Uber Eats in an effort to attract a wider audience.
As of today, Panera announced that in addition to their own app and website, consumers may place lunch and dinner orders via Door Dash, Grub hub, and Uber Eats. In most areas, Panera will utilize its own delivery drivers to bring your food to you.
DELIVERY NETWORK
Executive V.P. and chief growth and strategy officer Daniel A. Wegiel believe the collaborations will help Panera make the most of the delivery network it has established over the last three years.
Mr. Wegiel said that Panera was “one of the first fast-casual concepts to offer its own delivery service,” making the chain a “trailblazer” in the delivery industry. With these collaborations, we are the only fast food chain in the country to provide a “bring your own courier” option. The most critical aspect for Panera is owning the visitor experience — and making sure it’s a fantastic one.
These additional collaborations are feasible because we already have a fleet of delivery drivers and the infrastructure developed to handle greater demand. We’re certain that by forming this alliance, we can expand our already thriving delivery company to new heights and set ourselves apart from the competition.
