Casey’s, Uber Partner to Provide More Delivery Options

ANKENY, Iowa—Casey’s and Uber Eats have teamed up to provide delivery to 755 locations, seven days a week, the convenience chain announced. The new service expands delivery options for Casey’s popular pizza, plus other prepared foods and branded products.

“We are uniquely positioned to deliver both prepared food items, like our pizza and cheesy breadsticks, as well as grocery items in one order, delivered to our guests’ front door,” said Art Sebastian, vice president, digital experience, Casey’s. “Casey’s already delivers from about 1,200 stores, and this adds delivery service to nearly 103 additional stores,” he said.

Since April 2019, Casey’s, the fifth-largest pizza chain in the U.S., has seen the demand for delivery double nearly every month. Delivery hours will match each Casey’s store kitchen hours from morning to night, seven days a week. Currently, 365 items are available across 17 product categories, leading with pizza but also including ice cream, drinks, everyday essentials and more.

“By investing in and expanding delivery, we continue to bring Casey’s to where our guests are and serve their needs. We are excited to serve more guests who prefer this convenient way of ordering their favorite snacks, pizza or grocery items any time,” said Sebastian.

NACS Magazine profiled Casey’s and its growth strategy in the May 2021 issue.

The demand for prepared food minus human contact continues to grow. But many pizza purveyors are undecided about the value of using a delivery platform such as DoorDash or Uber Eats, reports the Wall Street Journal.

As pizza chains and other foodservice providers strive to maintain growth after the pandemic, some are using apps to reach new customers or add delivery capacity, while others say the services cut too far into their margins.

Papa John’s provides delivery services with its own driver but also via major delivery apps to reach more consumers. “It’s profitable or we wouldn’t be doing it,” said Rob Lynch, CEO, of sales through delivery apps, the Journal reports.

Rival Domino’s, the No. 1 pizza chain in the world based on global retail sales, eschews third-party delivery providers, saying their fees crimp profits. Domino’s and other pizza chains use their own drivers, a shift that accelerated during the pandemic. Domino’s is investing millions in a digital infrastructure, including a proprietary sales system and GPS order tracking, and is testing on-the-road delivery with robots at one Houston store.

Domino’s, Papa Johns, Little Caesers and Yum! Brands’ Pizza Hut saw same-store sales soar during the pandemic, thanks to delivery and contactless pickup.

Pizza Hut sometimes uses delivery platforms when it can’t keep up with demand with its own drivers, Kevin Hochman, interim U.S. president for the chain, told the Journal. “When you start adding up the delivery fee and the menu markup, it’s a much more expensive proposition,” he added.

Across the foodservice industry, businesses are pushing back on the commissions charged by delivery apps and are creating ways to maintain control over customer orders. One edge for the pizza business is low costs. Pizza is generally cheaper to make than many other types of food, and pizza restaurants are often left with more profit to pay drivers and other overhead costs than restaurants that specialize in other cuisines and rely on delivery companies. Plus, people love pizza, which is second only to burgers as America’s favorite entree ordered from restaurants, according to NPD Group, the market research firm.

“We think consumer expectations around delivery are just going to continue to grow,” said Dennis Maloney, Domino’s chief innovation officer.

NACS Research last year released its landmark “NACS Last Mile Fulfillment in Convenience Retail” study, outlining the opportunity for convenience retailers to grow sales and expand customer reach as the market evolves. Download it free here.

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