Grubhub+ Relaunches, UPS Strike Averted
Quiznos is back, stocks are flat
Wow, this week is moving quickly. Today there are two huge developments: UPS’ strike looks to be averted, and Grubhub is relaunching its all-important subscription program. And yet, the market seems largely unmoved. Maybe they’re more excited about the return of Quizno’s Spongmonkeys?
Today:
Grubhub Relaunches Subscription Service
UPS & Teamsters Avert Strike
Chart Time | Stock Market Yawns
Quiznos Toasts Up a Return
3PD | Grubhub Retools Loyalty Subscription Program
Grubhub announced an overhaul of Grubhub+, its subscription and loyalty service; although the basic $0 delivery on orders of $12 or more remains unchanged, as does the $9.99/mo pricing. New features include lowered service fees, and a five percent credit rebate on pickup orders. Soon to launch will be a partnership with Shell to save five cents per gallon on gas.
The Big Picture: Each 3PD has leaned on its subscription program to boost user stickiness, with Grubhub specifically calling that out as part of this relaunch: “As a valuable and growing diner segment, Grubhub+ members order more frequently and have significantly better retention than non-members. They are also highly engaged — using their membership and $0 delivery fees to order more than just restaurant meals, including convenience items. This behavior benefits the Grubhub marketplace more broadly since merchants receive more orders and delivery partners have more opportunities to earn.” Grubhub’s scored some significant partners for its program: Amazon, BofA, Lyft. Despite that, they’ve been unable to move the needle on marketshare growth, which has languished around 10%. Also interesting is the move to push pickup; while it saves the expense of dispatching and delivery, often times consumers are better off just calling the restaurant directly and getting the order without any potential markups.
LOGISTICS | UPS & Teamsters Reach Tentative Agreement
UPS management and the Teamsters Union have reached a tentative new employment agreement, seemingly averting a strike at the last second. Highlights of the new contract include a $2.75/hr raise in 2023, increasing by $7.50 over the course of the 5-year contract; a wage floor of $21/hr for existing part-time workers; and a new top wage of $49/hr full-time drivers.
The Big Picture: A strike could have had huge implications for the economy, with UPS deliveries affecting 5-7% of GDP. The new contract has wins for workers beyond just pay raises; a detested “hybrid worker” position that was created under the previous contract will be eliminated, trucks get AC, holidays and overtime rules are reformed, and the company will create 7,500 new full-time Teamster positions. With these perks and more, it seems likely members will agree to the new contract.
WEBINAR | Tune in Thursday to Discuss Sustainability in Delivery
Join us on Thursday at 11 PT / 2 ET for an important discussion on the ways public and private organizations are working together to improve sustainability across the worlds of delivery and mobility. We’ll hear from top minds at Uber Eats, Perch Mobility, WXY Architecture + Urban Design, and San Francisco’s Environment Department. Register now.
CHART TIME | Stock Watch
We’re only partway through Tuesday, and it’s already been a wild week for a number of companies in the delivery sector. The chart above looks at how a few stocks have performed since the markets opened on Monday; logistics carrier Yellow rocketed up 42% after a strike was averted, but has since given back those gains (blue line.) Grubhub-parent Just Eat Takeaway (orange) is up over 4%, but much of that seems to have happened pre-announcement (it trades in Europe.) Uber and Doordash are effectively flat, as is the broader market; UPS seems unmoved by news of the strike aversion.
RESTAURANTS | Is Quiznos Back?
While Subway has had its recent stumbles, no sandwich chain has been burnt quite like Quiznos. After reaching 5,000+ locations in 2007, the company ran into headwinds after Subway also started toasting subs and it lost a lawsuit from its franchisees; it filed for bankruptcy in 2014 and sunk to 200 locations.
The Big Picture: REGO Restaurant Group is looking to restore the company, alongside its other brands that include Dairy Queen and Lavazza. The company is also bring back its… uh let’s say “iconic”… weird advertisements featuring the Spongmonkeys. Part of its growth strategy is a reliance on less-traditional formats; the company is pushing drive-thrus, even though customers are usually used to looking at ingredients in a sub shop. If Quiznos doesn’t mind that degree of abstraction, perhaps this could work well as a virtual restaurant as well?
A Few Good Links
ALDI launches “Fan Favorites” delivery promo, offers discounted DoorDash delivery. TikTok Dip N Drip drives traction for El Pollo Loco. Geek+ sorting robots head to Hong Kong’s central mail center. Albertsons beats Q1 estimates, hits $24.05B in sales and 35.9M loyalty members. DoorDash launches back to school promos - watch the ad. Vibenomics and Stingray combine forces to launch largest in-store retail media network. DD teams up with NY Legal Assistance Group to offer immigration clinics.
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