Reflecting the logistical difficulties of running their own in-house delivery service, and the falling in store foot traffic, Pizza Hut has started using Grubhub for deliveries.
When even pizza giant Pizza Hut switches from it's own delivery system to Grubhub, you know the logistics and economies of scale of running an in-house delivery system are challenging. Yum Brands, owner of Pizza Hut, Taco Bell and KFC recently announced that it would begin deliveries from Pizza Hut using Grubhub. It is also an investor in Grubhub.
Grubhub has already been the delivery partner for KFC and Taco Bell, but Pizza Hut represent the first of the large Pizza delivery chains to sign up exclusively with Grubhub.
It could take up to a year to roll out this partnership. In an additional twist, initially Pizza Hut intends to use it's own drivers to deliver, rather than the Grubhub independent drivers. It will initially use Grubhub for order processing, routing and tracking.
When reporting it's latest results Pizza Hut acknowledged that its sales have suffered from a lack of foot traffic in stores, and that it intended to focus more on a delivery-first model, rather than dine-in customers.