Daily Insights

Little Caesars Enters the Delivery Wars

By: Mackenzie Baker | Jan 10, 2020

Little Caesars and DoorDash are teaming up to bring nationwide delivery to pizza lovers. 

Little Caesars has been one of the only nationwide pizza chains reluctant to offer delivery—enticing customers with lower prices for in-store pickup instead. However, as customers become more invested in convenience over price and other chains including McDonalds and Chipotle have started working with food delivery services, Little Caesars has decided to enter the delivery wars as well. The company is keeping food prices the same, but adding a $2.99 delivery charge and a 10% service fee to all delivery orders—which can be placed through the company’s app or website. DoorDash has previously delivered for some of the chain locations with orders placed on its own app but after ramping up its spending in the past year in an effort to promote its restaurant partnerships, according to a Garter report, the partnership means all orders will now be placed through the Little Caesars app. 

With nearly 5,000 restaurants in its portfolio, Little Caesars plans to roll out delivery for nearly all locations across the U.S. and Canada starting this month. The company completed a pilot run with DoorDash that showed the partnership could drive sales and profit for both companies. This alliance is just the latest in the pizza delivery wars; Pizza Hut works with Grubhub, while Papa Johns inked a deal with Uber Eats in addition to being available on Postmates and DoorDash. Dominos, on the other hand, has been working freely to compete against food delivery brands and pizza competitors—the company has even started using custom electric bikes to compete against rivals. 

Restaurant chains are facing more pressure than ever to get food to customers in a convenient and quick manner so Little Caesars’ move makes sense. Brands looking to appeal to customers without sacrificing low prices may be inspired by Little Caesars’ newest business venture.