The Habit Burger Grill is also expanding Quick Pick-Up from its current deployment at about one-third of the system.
The brand is intentionally marketing its off-premise channels, which have yielded incremental sales contributing to its topline growth during the quarter. KFC U.S., for example, experienced a 1% increase in same-store sales on the quarter, boosted by its Quick Pick-up ordering channel, introduced last year, and white label delivery offering. Otherwise, Yum’s internal efforts on digital have largely helped insulate the company from additional pressures in this “dynamic environment.” Implementation will take a while but it’s part of our strategy for dealing with this dynamic environment,” Turner said. “We expect that if those gains show up, more and more will choose to move in that direction.
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Pizza Hut will implement delivery as a service in the next two to three quarters and franchisees will be able to decide how to work with aggregators. Turner said Yum’s scale allows the brand to negotiate favorable deals with aggregators and ensure economics are “roughly the same across channels,” which is noteworthy as third-party delivery is costly. DoorDash alone has more than 20 million active customers on its marketplace, for instance. The platforms are, indeed, attracting a lot of consumers who have grown used to the ease of ordering a meal from their phones. One leading franchisee who has moved onto these platforms already is running “four to five points ahead of the system,” Turner noted, primarily driven by incremental customers finding the brand on those apps. “That is part of our strategy for wanting to be ubiquitous–being everywhere our customers want to do business with us,” CFO CFO Chris Turner said during the call. It’s also integrating delivery as a service into its point-of-sales system, which means customers can continue to order through Pizza Hut’s website and app for delivery, but that delivery will be fulfilled by third-party aggregators, like DoorDash DASH and Uber Eats, during peak hours.Īdditionally, Pizza Hut is working with those aggregators to appear on their marketplaces to augment its own delivery network.
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