As rival chains consider outsourcing pizza deliveries, Domino's Pizza is taking a hard stand: Only its employees will take those much-desired pies to customers' doors.
The Ann Arbor, Mich.-base pizza giant isn't interested in engaging the services of companies like Uber Eats, DoorDash and Lyft, as many in the fast-food world have done, CEO J. Patrick Doyle told analysts earlier this week
"The efficiency of the delivery process is something we know and understand very, very well. That's not something you’re ever going to see us outsource," he told analysts. "The only way to bring a long-term competitive advantage is to do it yourself."
Earlier this month, for example, Yum Brands -- which owns KFC, Taco Bell and Pizza Hut -- announced will partner with GrubHub for online orders and delivery. Yum Brands also is investing $200 million in GrubHub. Pizza Hut will, for now, handle its own delivery.
Restaurant consultant John Gordon of the Pacific Management Consulting Group said handling delivery themselves is in the best interest of Domino's, because doing so helps the pizza giant's public face -- and bottom line.
"They've done it themselves forever. They own the connection with the customer. If the pizza is screwed up, they can fix (it)," he said. "There’s no third-party guy running around for 45 minutes."
Then there's the issue of cost. Gordon believes Domino's can make deliveries cheaper than outsourcing the job and paying a tribute of 30% to some service.
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