Yum taps GrubHub to provide delivery for Taco Bell, KFC

Yum taps GrubHub to provide delivery for Taco Bell, KFC

Taco Bell and KFC's parent, Yum Brands, is partnering with Grubhub to drive what the two organizations qualified as "incremental sales to KFC and Taco Bell restaurants in the U.S. through online ordering for pickup and delivery," a news release said. 

In fact, Yum also entered into an agreement with Grubhub to purchase $200 million of common stock, subject to customary closing conditions, an investment that will provide Grubhub with additional liquidity to accelerate expansion of its U.S. delivery network, while the companies said driving more orders to YUM restaurants, and enhancing the ordering and delivery experiences for consumers, as well as restaurateurs and GrubHub drivers. 

"We are committed to making our iconic brands easier to access through online ordering for pickup and delivery, and aggressively pursuing delivery as a strategic global growth opportunity, with nearly half of our 45,000 restaurants already offering it today"

The partnership aligns with YUM's long-term strategies to make its brands — which also include Pizza Hut —  easier for consumers to access, while hopefully driving sales growth for franchisees.

Grubhub will be Yum's only national partner providing dedicated support for KFC and Taco Bell branded online delivery channels, along with access to Grubhub's online ordering platform, logistics and last-mile support for delivery orders, and point-of-sale integration to streamline operations. 

KFC, Taco Bell and Grubhub will engage in joint marketing initiatives that will generate new diners and drive order frequency for existing diners.

"We are committed to making our iconic brands easier to access through online ordering for pickup and delivery, and aggressively pursuing delivery as a strategic global growth opportunity, with nearly half of our 45,000 restaurants already offering it today," Yum CEO Greg Creed, said in the release. "We're pleased to secure this partnership with Grubhub in order to drive incremental, profitable growth for our U.S. franchisees over the long term. Our partnership and strategic investment in Grubhub demonstrate our laser-like focus on two of our growth drivers: Distinctive, Relevant & Easy Brands and Unmatched Franchise Operating Capability."

The brands will work with franchisees to test and roll out online ordering for pickup and delivery to thousands of participating KFC and Taco Bell restaurants in the U.S. markets Grubhub serves. When the initial phase of this Grubhub partnership is launched over the coming months, KFC will offer door-to-door delivery of its chicken and other menu items to consumers in the U.S. The partnership will help bring Taco Bell's menu items to fans as well. 

"We are thrilled to bring KFC and Taco Bell to Grubhub. Grubhub was founded to help small business owners and restaurant entrepreneurs grow, and we look forward to supporting YUM's local operators by driving greater sales and profit growth through access to our 14 million active diners," GrubHub CEO Matt Maloney, said in the release. "We are excited to tap into the unmatched consumer awareness and innovative advertising of KFC and Taco Bell, helping accelerate the secular shift from offline ordering to online, driving more orders to all of our restaurants."

Finally, as a part of the partnership, Grubhub will expand its board of directors from nine to 10 members and appoint Pizza Hut U.S. President Artie Starrs to the newly created board seat as an independent director. Pizza Hut, which fulfills more than 100 million delivery transactions in the U.S. annually and manages a world-class network of drivers. Grubhub and Pizza Hut have not yet worked out a deal, but the news release said the two will work together to determine how best to leverage their respective scale and expertise.

Goldman, Sachs & Co. served as financial advisor and Mayer Brown is serving as legal advisor to Yum Brands. Kirkland & Ellis LLP served as legal advisor to Grubhub Inc.

Finally, as a part of the partnership, Grubhub will expand its board of directors from nine to 10 members and appoint Pizza Hut U.S. President Artie Starrs to the newly created board seat as an independent director. Pizza Hut, which fulfills more than 100 million delivery transactions in the U.S. annually and manages a world-class network of drivers. Grubhub and Pizza Hut have not yet worked out a deal, but the news release said the two will work together to determine how best to leverage their respective scale and expertise.

Goldman, Sachs & Co. served as financial advisor and Mayer Brown is serving as legal advisor to Yum! Brands. Kirkland & Ellis LLP served as legal advisor to Grubhub Inc.

Finally, as a part of the partnership, Grubhub will expand its board of directors from nine to 10 members and appoint Pizza Hut U.S. President Artie Starrs to the newly created board seat as an independent director. Pizza Hut, which fulfills more than 100 million delivery transactions in the U.S. annually and manages a network of drivers, and Grubhub, have not yet worked out a deal, but the news release said the two will work together to determine how best to leverage their respective scale and expertise.

Goldman, Sachs & Co. served as financial advisor and Mayer Brown is serving as legal advisor to Yum! Brands. Kirkland & Ellis LLP served as legal advisor to Grubhub Inc.

 

 

 


Topics: Business Strategy and Profitability, Customer Service / Experience


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