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Delivery is more popular than ever, but one very crucial sector—the restaurants themselves—aren’t reaping many profits from this change in the way consumers eat. <a href="https://www.cnbc.com/2019/12/13/grubhub-uber-eats-and-doordash-drove-an-online-food-delivery-boom.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=online-delivery-became-a-102-billion-industry-but-restaurants-still-lost-2711875" target="_blank" rel="nofollow">According to a report published by CNBC</a>, consumers ordered $10.2 billion from <a href="https://1851franchise.com/when-it-comes-to-third-party-delivery-apps-and-restaurants-it-s-relationship-status-it-s-complicated--2709390">third-party delivery services</a> in 2018.&nbsp;It’s no secret that in modern times, convenience is king. “The consumer migrated towards having this expectation of things being at our fingertips, from other industries — the Amazon effect, you could argue, contributed to some of this,” Aaron Allen, CEO of restaurant consultancy Aaron Allen &amp; Associates, said to CNBC.&nbsp;&nbsp;Because of the popularity of online ordering and delivery, the landscape of restaurants is changing—literally. Brands are <a href="https://1851franchise.com/qsrs-packaging-awards-call-out-excellent-packaging-design-by-kfc-mcdonalds-and-more-2711585#franbuzz">reinventing the way they approach packaging</a> to ensure food travels well, launching new store prototypes, experimenting with <a href="https://1851franchise.com/doordash-goes-rogue-and-opens-shared-ghost-kitchen-2711310#most-recent">ghost kitchens</a> and <a href="https://1851franchise.com/pizza-hut-temporarily-closing-500-stores-2710630">remodeling existing stores</a> to adapt to rush-hour demands. CNBC stated the Chipotle was one of the restaurants which adapted to this trend by adding a second kitchen line to locations in 2016 to accommodate mobile and online orders. All of this, of course, comes at a cost to the restaurants themselves.&nbsp;Takeout-heavy restaurants such as pizza places have always relied on delivery as the bread-and-butter for their business, and third-party apps have swiped the market share right out from under them. Domino’s has notably resisted outsourcing delivery, and is instead focusing on <a href="https://1851franchise.com/domino-s-debuts-technology-testing-center-in-a-garage-2710782">upgrading its own in-house technology</a>.&nbsp;In spite of their success, however, CNBC wrote that the gig-based services are <a href="https://1851franchise.com/amid-hefty-declines-grubhub-outlines-a-new-plan-to-try-and-stay-afloat-2711462#franbuzz">struggling to turn a profit themselves</a>. GrubHub, DoorDash and Uber have all <a href="https://1851franchise.com/doordash-reforms-tipping-model-following-controversy-2710579#franbuzz">come under fire</a> for their nebulous classifications surrounding the employment of drivers and couriers, and CNBC stated that these platforms will <a href="https://1851franchise.com/new-york-city-to-hold-public-hearing-on-third-party-delivery-2710279#franbuzz">only be facing more back-and-forth</a> over employee labor rights.&nbsp;Read the full story in CNBC <a href="https://www.cnbc.com/2019/12/13/grubhub-uber-eats-and-doordash-drove-an-online-food-delivery-boom.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=online-delivery-became-a-102-billion-industry-but-restaurants-still-lost-2711875" target="_blank" rel="nofollow">here.</a>

Online Delivery Became a $10.2 Billion Industry, but Restaurants Still Lost

1851 Franchise

Third-party aggregators have cost restaurants big in renovations, labor and stolen the market share from stores with in-house delivery teams. 

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Online Delivery Became a $10.2 Billion Industry, but Restaurants Still Lost

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