Big Pizza’s Delivery Moves Turn Up the Heat on Small Pizzerias

Mom and pop pizzerias may have beat pizza chains to third-party delivery marketplaces years ago, but added competition from new entrants Pizza Hut and Papa John’s will force operators to choose between paying higher premiums to sustain visibility with customers or ditch services altogether.

Partnerships with Grubhub, Uber Eats, and the like notoriously offer restaurants increased order volume, due to targeted advertising on mobile apps. Business owners can also afford to cut back on in-house drivers, with delivery operations being outsourced. These services, however, already come at a 20 to 30 percent cost in fees per order.

Papa John’s and Pizza Hut have more resources to better leverage the market and negotiate down fees charged by delivery companies. Additionally, a disparity in price points favoring chains could steer customers away from local businesses.


Leave a comment

Your email address will not be published. Required fields are marked *