TL;DR
Noodles and Company has started testing new ravioli and tortelloni dishes at 21 locations and is marking up delivery orders by 10% to offset third-party delivery fees. The brand is hoping to alleviate the slowdown in delivery sales with its new menu options and lower delivery fees compared to third-party services.
It seems as though there are a lot of mixed feelings regarding third-party delivery services . Some brands really embrace it, while others do what they can to withstand their positions against it.
Noodles and Company appears to be one of those brands that is doing what they can fight implementing third-party services. According to Nation’s Restaurant News (NRN) , Noodles and Company has started to mark up delivery orders by 10%, which could be a new industry standard in attempts to offset margin-hunting third-party delivery fees.
Ken Kuick, Chief Financial Officer reported to NRN that it’s too early to tell how consumers are reacting to the uptick, as it has only been in effect for a few weeks. He also said, “We’re pleased with the results we’ve seen so far.”
The upstick in delivery fees comes as the growth of delivery sales has slowed, according to NRN. The brand is hoping to alleviate some of the slowdown with its new zucchini noodle option as well as its new cauliflower-infused noodles .
Noodles and Company also hopes that the 10% uptick in delivery fees will attract customers because its fee is still lower than most third-party services in most markets, NRN reports. Orders placed directly through the brand’s app consist of lower delivery fees than orders placed through third-party providers, it adds.
Whether it’s 10% or $10, this writer thinks us “lazy Americans” will still continue to order our favorite foods through any and every delivery service.
In this story
This story was originally published in 1851 Franchise on November 8, 2019. Burnaze summarizes and links to the original reporting.
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