1851

In 2019, the modern consumer is supported by the immediate and all-encompassing presence of technology. Blockbuster, brick-and-mortar retail and taxis gave way to Netflix, Amazon and Uber, all for the sake of convenience. “Pick-up” is synonymous with “easy,” and having access to a card on a mobile wallet allows for more consumer purchasing power than ever before.At the touch of a button, food can be ordered and delivered in a matter of minutes. Whatever culinary niche a craving comes for, a plethora of delivery apps await the order. Third-party delivery has revolutionized the way restaurants communicate with their customers and can provide a service that is <a href="https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">faster, easier, more convenient and customizable based on a user’s previous orders</a>. Younger consumers have changed the game by prioritizing the convenience and comfort of delivery over choosing to sit at a restaurant, and who could blame them? Online deliveries are causing a bigger uproar than the first In-N-Out drive-thru did back in 1948. Third-party delivery services are leading in the market share of consumer spend: <a href="https://thespoon.tech/doordash-now-holds-35-percent-of-consumer-spend-in-third-party-delivery/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">DoorDash is first with 35%, followed by Uber Eats with 25% and Grubhub with 23%</a>.Revenue in restaurant-to-customer delivery <a href="https://www.acitydiscount.com/info/The-Problem-with-Third-Party-Food-Delivery.371.1.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">has a growth expectancy of nearly 6% per year by 2023</a>. It is such a noticeable difference that brands are adapting to the customer experience by means of the <a href="https://1851franchise.com/warning-restaurant-owners-third-party-delivery-services-are-taking-over-2710756#most-recent">concept of virtual restaurants</a> to ensure customer satisfaction. These virtual restaurants, or “ghost kitchens,” provide delivery-only meals through apps and third-party delivery services, eliminating the need for a waitstaff and increased menu flexibility. DoorDash recently opened one in California that <a href="https://1851franchise.com/doordash-goes-rogue-and-opens-shared-ghost-kitchen-2711310#most-recent">prepare brands such as Nation’s Giant Hamburgers, Rooster &amp; Rice, Humphry Slocombe and The Halal Guys</a>; and <a href="https://www.justsalad.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Just Salad</a>, in a partnership with Grubhub, opened one called Health Tribes—<a href="https://1851franchise.com/franchise-development-leaders-valerie-mccartney-of-broken-yolk-cafe-2711431#most-recent">its 50 units makes it the largest virtual restaurant </a>that is associated with a delivery company.<a href="https://www.seamless.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Seamless</a>, the <a href="https://www.grubhub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Grubhub</a>-owned online delivery service, purchased <a href="https://www.thelevelup.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">LevelUp</a>, a company that <a href="https://www.acitydiscount.com/info/The-Problem-with-Third-Party-Food-Delivery.371.1.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">helps restaurants develop digital payment services and loyalty programs</a>. Brands must constantly strive for creative options to keep the interest of their customers, but for those willing to put in the effort,&nbsp; it pays off: <a href="https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">20% of Starbucks transactions are made through the mobile ordering app</a> due to its rewards program and UX-optimized build; Taco Bell allows its customers to order, set a pick-up time, and pay in advance, which also averages out to <a href="https://www.nrn.com/sponsored-content/restaurant-takeout-and-delivery-are-taking-bite-out-dine-traffic?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">20% more than orders that are received in-store</a>.Some brands refuse to comply with this trend. <a href="https://www.jimmyjohns.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Jimmy Johns</a>, for example, sees itself as an “anti-delivery app shop”, and continues to employ its 45,000 drivers to deliver their iconic “freaky fresh” sandwiches. <a href="https://www.qsrmagazine.com/fast-casual/jimmy-johns-we-will-never-use-third-party-delivery?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">John Shea, CMO of Jimmy Johns, declared to QSR Magazine</a> that “delivery is now among the fastest-growing areas in the restaurant industry, but third parties are not up to the Jimmy John’s delivery standard. We are faster, fresher, a better value, and more consistent. For these reasons and more, we will never use third-party delivery services.” <a href="https://apnews.com/36be30dc1c944101a310bef3e79eca7a?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">Jimmy Johns is not the only chain that refuses to use third parties for deliveries: Dominos, Panera Bread and Olive Garden</a> are staying on the bridge and not jumping after their restaurant chain friends into this delivery shift. Customer satisfaction is a priority, and in some cases, the speed in delivery and commission fees outweigh the benefit of using a third party.Third-party delivery isn’t necessarily a bad thing for those brands willing to sacrifice a portion of their margins. Grubhub claims that delivery services can attract new customers by <a href="https://get.grubhub.com/blog/best-strategies-for-attracting-new-customers.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery-2711703" target="_blank" rel="nofollow">exposing potential new restaurants</a> that they weren’t aware of before, and an online presence will not only gain exposure through the app, but through social media as well. Recurring revenue, anyone?

Full-Service Makes Us Nervous: The Decline of Full Service Restaurant Traffic Against Third-Party Delivery

1851 Franchise

Restaurants face pressure from convenience more than ever as they attempt to adapt to the needs of the modern consumer.

full-service-makes-us-nervous-the-decline-of-full-service-restaurant-traffic-against-third-party-delivery

Busy Bee Jumpers

Busy Bee Jumpers Buzzes into Franchising: Three New Franchisees Signed in First 30 Days

busy-bee-jumpers-buzzes-into-franchising-three-new-franchisees-signed-in-first-30-days

Fitness Premier

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum 

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum with Revenue Gains, Record Membership, and Strategic Expansion

fitness-premier-mid-year-growth-2025

Woodhouse Spas

image of a woodhouse spa franchise buildings exterior 

Woodhouse Spas Continues Strong Momentum With Double-Digit Growth in Q2

woodhouse-spas-q2-2025-growth-expansion

Layne's Chicken Fingers

Layne's Chicken Fingers-Mountain-State-Devo-June-2025

Layne’s Chicken Fingers Eyes Expansion in Mountain States

laynes-chicken-fingers-franchise-mountain-states-expansion

ServiceMaster Restore

ServiceMaster Restore Powers Into the Second Half of 2025 With Growth and Purpose-Driven Impact

ServiceMaster Restore Powers Into the Second Half of 2025 With Strong Growth and Purpose-Driven Impact

servicemaster-restore-powers-into-the-second-half-of-2025-with-strong-growth-and-purpose-driven-impact

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

Full-Service Makes Us Nervous: The Decline of Full Service Restaurant Traffic Against Third-Party Delivery

MORE STORIES LIKE THIS