Is GrubHub paving the way for restaurant technology?
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Is GrubHub paving the way for restaurant technology?

In February, GrubHub’s share price soared as news broke that it had signed an agreement to partner with fast food giants Taco Bell and Kentucky Fried Chicken (KFC). Investors are right to be excited – the deal will see GrubHub getting sudden entry into literally hundreds of cities where previously they had no business at all. And both Taco Bell and KFC are popular brands in high demand from consumers. But does GrubHub’s latest deal pave the way for a revolution of the industry?

GrubHub’s share price has risen 35% this year alone!

graph 2602 grubhub

SOURCE: Yahoo Finance

The deal, which GrubHub signed with Yum Brands – owner of KFC and Taco Bell, amongst others – will be beneficial for both parties. As the fast food industry changes dramatically, order and delivery has suddenly become an important part of the picture. With McDonald’s and Uber Eats in partnership, there’s no time to get it wrong.

Greg Creed, Yum Brands’ CEO, told the press: “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.”

GrubHub will be KFC and Taco Bell’s only delivery partner, and the deal will see the companies’ IT infrastructure intertwined, so customers can order through GrubHub directly on the restaurants’ sites. With the industry shifting so rapidly, are partnerships like this the next big thing in the fast food world?


Dominion holds GrubHub in its Global Trends Managed Fund.

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