LOUISVILLE, Ky. — Yum! Brands has entered a new partnership with Grubhub that will make KFC and Taco Bell restaurants across the U.S. available through Grubhub’s mobile-ordering-and-delivery service. Yum! has also entered into an agreement with Grubhub to purchase US$200 million of the company’s common stock.
The partnership is part of Yum! Brands’ strategies to make its brands easier for consumers to access and drive incremental sales growth for franchisees. Grubhub will be YUM’s only national partner providing dedicated support for KFC and Taco Bell branded online delivery channels, along with access to Grubhub’s online-ordering platform, logistics and last-mile support for delivery orders, and point-of-sale integration to streamline operations.
“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,” says Greg Creed, CEO, Yum! Brands, Inc. “We’re pleased to secure this partnership with Grubhub in order to drive incremental, profitable growth for our U.S. franchisees over the long term. Our partnership and strategic investment in Grubhub demonstrate our laser-like focus on two of our growth drivers: distinctive, relevant and easy brands, and unmatched franchise operating capability.”
KFC, Taco Bell and Grubhub will work with franchisees to test and roll out online ordering for pickup and delivery to thousands of participating KFC and Taco Bell restaurants in the U.S. markets Grubhub serves.
“Over the past two years we have taken incredible strides in expanding the breadth and depth of our restaurant network, growing the number of local restaurants we work with from 40,000 to over 80,000 today,” says Grubhub CEO, Matt Maloney. “The partnership with Yum! will accelerate the expansion of our delivery network and amplify our diner acquisition efforts, raising consumer awareness of online ordering and driving more volume for all restaurants across our platform.”
Finally, as a part of the partnership, Grubhub will expand its board of directors from nine to 10 members and appoint Pizza Hut U.S. President Artie Starrs to the newly created board seat as an independent director.