As McDonald’s and Wendy’s continue expanding third-party delivery at a growing number of locations, the mega-chain restaurants are reporting average check sizes 1.5 to two times higher than traditional, dine-in customers according to a new report from Stephens.
“We have seen early adopters of third-party delivery attract incremental traffic and penny profits, which we believe is evidence of the pent-up and growing demand for this convenience proposition,” said Stephens Analyst Will Slabaugh. “We believe early successes by most brands are signaling that third-party delivery can be a meaningful piece of the growth equation for restaurant brands in the coming years.”
McDonald’s, the largest franchised restaurant in terms of global sales according to the Franchise Times Top 200+ ranking, now offers delivery in more than 35 percent of its system, with check averages approximately 2.0X larger than regular in-store check averages. It has completed its migration to the UberEats platform during the year, and expects to re-launch its mobile app and test a new loyalty program before the end of the year.
During its 2Q18 earnings call, McDonald’s said delivery is currently available in 13,000 of its restaurants, up from 7,800 locations last summer.
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