According to a report from investment advisory firm Guggenheim Securities, U.S. consumers spent about $3.5 billion on delivery food, and the firm could see that number increasing to $12.5 billion by 2019.
While delivery business is booming, some franchise brands believe the potential revenue is not worth the risk. Many franchisors worry that long delivery times will diminish the quality of food and impact their reputations. For instance, Culver's cooks their burgers to order and their appeal is their restaurant atmosphere. David Stidham, vice president of marketing, told Nation’s Restaurant News that delivery takes away from their dining experience.
“We don’t like losing control,” Stidham said. “I don’t want to understate how important it is that our hospitality is involved. We have world-class team members. People love us. They come back because of the way they’re treated.”
The option for delivery is an interesting conundrum from franchise concepts. On one hand it can provide an opportunity to create additional revenue, while on the other hand, the quality of food is one of, if not the most important aspect of a restaurant franchise. It will be interesting to see what route franchise brands are going to go.
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