Starbucks, McDonald's, Chick-fil-A are charging more for delivery orders, report claims
Popular restaurant chains are allegedly charging more on third-party delivery apps
There’s nothing appetizing about higher prices.
Popular chains like Starbucks, McDonald's and Chick-fil-A are charging more for menu items purchased through third-party delivery apps as compared to in-store pick-up orders, a new report claims.
Popular chains like Starbucks, McDonald's and Chick-fil-A are charging more for menu items purchased through third-party delivery apps as compared to in-store pick-up orders, a new report claims. (iStock)
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In an analysis published on July 27, Gordon Haskett claimed that fast food chains charge an average of 15.3 percent more, and fast casual chains charge an average of 12.6 percent more for menu items bought through this delivery system.
According to the findings shared with Fox Business, Chick-fil-A (29.8 percent), Starbucks (20.3 percent) and McDonald’s (19.6 percent) demand some of the highest delivery menu pricing premiums on the market – and customers are paying. These figures are “an indication that concepts with strong customer affinity/loyalty have sizeable delivery pricing power,” Gordon Haskett said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 87.87 | -0.31 | -0.35% |
| MCD | MCDONALD'S CORP. | 276.91 | +1.25 | +0.45% |
| CMG | CHIPOTLE MEXICAN GRILL INC. | 2,914.70 | +31.19 | +1.08% |
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For example, a Chick-fil-A Chicken Sandwich purchased via DoorDash in Atlanta would cost $4.85 through the app, while the chicken-centric chain would charge $3.75 for the sandwich at the drive-thru. In Seattle, a grande Iced Americano from Starbucks would cost $4.58 via Postmates, but the café would charge $3.45 for the drink at the store itself.
According to the findings, McDonald’s demands some of the highest delivery menu pricing premiums on the market – but customers are paying. (iStock)
Moving forward, the researchers suggested that Chipotle would be wise to raise prices for its delivery orders by 15 percent in order to turn a profit. The chain is unique within its fast casual peer group in that it does not currently charge premium prices, but that might not be for long. Chipotle may join the competition and hike this fee in the fourth quarter, Gordon Haskett speculated.
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In a larger sense, business has been booming for many fast food chains across the country this summer amid the coronavirus pandemic, as dine-in options are restricted and customers continue to crave drive-thru service.