Here’s the latest sign that changes are afoot in the $500 billion U.S. restaurant market: Even the pioneers of food delivery — big pizza chains — are now turning to third parties for help.
Papa John’s International Inc., trying to recover from its deep sales slump, is now using DoorDash Inc. in more than 1,300 of its locations. It will be expanding that partnership in the coming months, Chief Executive Officer Steve Ritchie said after the pizza chain reported revenue that missed analysts’ estimates.
With Taco Bell, McDonald’s, Chipotle Mexican Grill and others doubling down on delivery, pizza chains are starting to feel the heat. It’s by no means Papa John’s only problem: The chain reported declining revenue and an 8.1 percent drop in North America comparable sales for its latest quarter amid bad public relations stemming from founder John Schnatter’s use of a racial slur last year and his lingering dispute with management. The results show that rivals may be eating into sales.
Papa John’s has been working with DoorDash since July. The chain has been exploring working with other delivery specialists as well, a company spokeswoman said in an email.