Wouldn’t it be great if every restaurant paid you for dining out? Some do via limited-time discounts and coupons, but rarely are such promotions easy to spot. That’s where Grubhub comes in. The Chicago-based company already powers loyalty programs for chains like Shake Shack and Just Salad, but it will soon go a step further by collating rewards in a single tab called Perks.
Starting this week, Grubhub customers on mobile will begin to see exclusive giveaways, incentives, and offers from brands like Taco Bell, Auntie Anne’s, Red Lobster, Argo, Smoothie King, Pokeworks, and Honeygrow from within the new Perks menu. Perks will integrate restaurant loyalty programs, allowing diners to enroll, earn, and spend points digitally, and it will list all local and national rewards available for immediate use, which Grubhub says can total more than $400 in free food at any time.
“Restaurants have always used free food as a perk for their VIP diners — to keep them happy and coming back. We have now extended this practice to Grubhub diners by building loyalty tools so our restaurant partners can promote their restaurants more aggressively on our marketplace and reward their best digital diners as well,” said Grubhub founder and CEO Matt Maloney.
Publicly traded Grubhub, which counts more than 125,000 restaurant partners in over 2,400 U.S. cities and London among its clients, has steadily expanded its food delivery empire in the 15 years since its founding. The company’s portfolio of brands includes Boston-based diner engagement solutions startup LevelUp and Tapingo, an Israel-based platform for campus food ordering, along with AllMenus, MenuPages, and former direct competitor Seamless. In total across all apps and properties, Grubhub has over 19 million active users.
The food delivery market could grow from nearly $17 billion this year to more than $24 billion in 2023, according to Statista, driven by demand from younger consumers. A recent survey conducted by Acosta and Technomic found that 77% of millennials placed delivery orders over the past three months compared with 51% of all U.S. diners, and that 44% of millennials ordered meals from a third-party service versus just 20% of all diners.
Perhaps it’s no surprise that brands are increasingly complementing dine-in experiences with delivery options. Starbucks recently announced it would expand its delivery service — Starbucks Delivers — nationwide by early 2020 through an exclusive partnership with Uber Eats. In February, Yum! Brands — the group behind KFC, Taco Bell, and Pizza Hut — teamed up with Grubhub for national online delivery. And last November Subway inked a partnership with DoorDash, Grubhub, Postmates, and Uber Eats to offer delivery from thousands of its locations.