Subway partners with Postmates, Grubhub and others to offer food delivery to 9,000 US locations
Subway has announced that it has partnered with four of the largest third-party delivery operators in the US to start delivery from 9,000 of its US restaurants.
By creating partnerships with Postmates, Uber Eats, GrubHub, and DoorDash, the world's largest sandwich chain hopes to tap into a bigger consumer base.
Subway has franchises in nearly 26,0000 US locations and so the firm hopes that a new delivery offering will help to strengthen sales.
"We've been testing delivery with Subway for quite some time. In fact, we've delivered 43 miles of subs – that's 221,000 pounds of sandwiches to hungry third-party users," said Dan Mosher, SVP, Merchant Lead Postmates.
"This official partnership enables them to bring on-demand delivery to more customers faster, delivering their favourite subs right to their door."
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In recent years, Subway has embarked on a handful of initiatives to boost profitability for its franchisees.
These include relocating restaurants to better sites modernising tires and adding new ingredients to regional menus.
Michael Lang, Senior Director of Global Convenience at Subway, added: "We're committed to providing a world-class guest experience both in-restaurant and in-home by offering guests delivery options.
“Our delivery partnerships demonstrate our commitment to give customers more of what they want while driving restaurant profitability for our franchise owners."
Tapping into the growing delivery market, more restaurants are increasingly turning to third-party logistics companies to deliver their food to customers.
Earlier this year, Yum! Brands Inc. agreed to buy a $200mn stake in GrubHub.
Chipotle Mexican Grill also recently launched delivery in partnership with DoorDash, through its mobile app and website.
In the last five years, revenue from food deliveries has jumped 20% and the overall number of deliveries increased by 10%, according to data from the NPD Group.
Will Public Procurement Budgets Increase in 2021?
Procurement is more than just a private enterprise. COVID-19 reminded us that sourcing materials is an essential part of the government’s role. Throughout 2022, tiny departments sourced massive amounts of personal protective equipment (PPE), medical supplies, and emergency vaccines and testing kits. Even non-procurement professionals were pulled into the fray, as frantic timelines demanded nothing less.
According to Celeste Frye, co-founder and CEO of Public Works Partners, the crisis brought procurement to the attention of skilled employees who had never considered it. As non-procurement personnel stepped up to help their coworkers, many found that they’d stumbled upon a critical and rewarding job. “Existing public employees have seen the essential nature of the work”, Frye said. “[They’ve] gained some critical skills and possibly [grown] interested in pursuing procurement as a longer-term career”.
Small, Local Suppliers Take Charge
Frye, whose firm helps organisations engage stakeholders and develop long-term procurement strategies, thinks it well worth the effort to open one’s mind to new opportunities. Cooperative contracts, for instance, can help public departments and municipalities save money, time, and effort. By joining together with other towns or cities in the region, public procurement teams aggregate their purchasing power and can drive better deals.
These cooperative contracts have the added benefit of advancing equity. Smaller suppliers that struggle to compete with established firms for government contracts can act as subcontractors, helping big suppliers fulfil bits of the project. Once they get their foot in the door, small, local, and disadvantaged suppliers can then leverage that government relationship to take on additional projects.
Especially as governments start to pay attention to procurement resilience, public procurement departments must expand their requests for proposals (RFPs) to take into account innovative solutions and diverse suppliers. According to Frye, Public Works Partners—a certified female-owned firm—has benefitted from local and state requirements that specify diversity.
Post-Pandemic Funding Swells Procurement Budgets
And the pandemic won’t be the end of it. City governments need to build sustainable energy infrastructure such as solar panels, charging stations, and recycling plants, ensure that masks and medicines are never in short supply, and source new technologies to keep up with cloud and cybersecurity concerns.
Public procurement budgets will likely increase to match demand. As Peter Ware, Partner and Head of Government at Browne Jacobson, explained, “in a non-pandemic world, the [U.K.] government spends on average around £290 billion on outsourced services, goods, and works...anywhere between 10% and 14% of Gross Domestic Product (GDP). Post-pandemic, city procurement will only increase as national governments provide local divisions with emergency funding.
And in truth, government employees might jump at the opportunity. Frye noted that public procurement could give immediate feedback on new programmes: “[Procurement] is where new laws and policies ‘hit the road’ and are implemented”, she said. “Professionals in these fields get the satisfaction of creating real change and seeing quantifiable outcomes of their work”.