Little Caesars Teams Up With DoorDash to Offer Nationwide Delivery

(Bloomberg) -- Little Caesars Enterprises Inc. has teamed up with DoorDash Inc. to offer nationwide delivery, as it seeks to navigate the expanding world of mobile and online ordering that’s threatening to sap business from laggards.

Starting Monday, delivery will be available at about 90% of Little Caesars’ U.S. locations. The prices are the same as carryout, plus a $2.99 delivery fee and 10% service charge. DoorDash had already been delivering for the Detroit-based chain through its own app, but orders will now be placed directly through the Little Caesars mobile app or website, Chief Executive Officer David Scrivano said in an interview.

Little Caesars has lagged behind other restaurants in delivery, relying instead on its fast pick up and shorter wait times to entice business. But the company is pushing further into the service as chains from Chipotle Mexican Grill Inc. to McDonald’s Corp. start offering delivery, in a battle to win over consumers seeking more convenient ways to order.

Little Caesars expects delivery will help lift sales at both its company and franchise units this year, following a successful test of the service. The company’s heated pizza lockers, where customers can pick up mobile orders, have already simplified the ordering process, Scrivano said.

Intense competition in the industry is showing no signs of letting up in 2020. Domino’s Pizza Inc., the largest U.S. pizza chain, recently offered a less robust outlook for the next two to three years, fanning investors’ fears that rivals offering delivery are biting into its business. Still, the company has recently lured Americans with its two items for $5.99 menu, sending comparable sales up for 34 straight quarters.

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editors responsible for this story: Sally Bakewell at sbakewell1@bloomberg.net, Lisa Wolfson

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