Forward integration is increasingly a popular strategy among restaurants.  Scores of mainstream restaurant chains now use or are developing online-ordering apps that often entail delivery of food to customers.  For example Panera Bread had installed online-ordering and delivery in about 40 percent of its restaurants by yearend 2017.  Panera employs over 10,000 of its own delivery drivers.  Similarly Dunkin’ Brands is now delivering doughnuts and coffee in Dallas, Atlanta, Chicago, Los Angeles, and numerous other cities.  Chipotle Mexican Grill has instituted a second food assembly line in its restaurants to accommodate delivery and online orders.  Taco Bell now takes online orders and delivers in more than 50 markets through nearly 1,000 Taco Bell restaurants (p. 135a).  Online ordering and delivery of restaurant food in general is expected to soon surpass pizzas in terms of online ordering and delivery.

Source:  Based on Julie Jargon, Restaurants Build Up the Hot Delivery Business,” Wall Street Journal, June 2, 2017, B3.