Dive Brief:

• Bloomin’ Brands announced today its Outback Steakhouse brand will partner exclusively with DoorDash to expand delivery. With nearly 700 locations, the partnership makes Outback the largest steakhouse on the DoorDash platform, according to a news release.
• “We’ve done a remarkable job growing our own delivery business, and DoorDash adds another layer of accessibility and convenience,” said David Deno, Chief Executive Officer of Bloomin’ Brands. “This partnership opens the door to new customers and gives existing customers another option when they choose to dine with us in the comfort of their own home.” 
• To promote the partnership, Outback is giving away a free 6 oz. sirloin and side dish with a minimum $20 purchase for the next five days to customers who order through the DoorDash app. 

Dive Insight:

The announcement is a bit unusual considering a growing number of chains are expanding beyond exclusive delivery partnerships. McDonald’s recently ended its exclusive partnership with Uber Eats to expand its McDelivery service through Grubhub. 

Checkers & Rally’s Restaurants chose to roll out delivery through five delivery partners (Uber Eats, DoorDash, Postmates, Grubhub and Amazon Restaurants) to increase access and exposure. Even Panera, the longtime model of in-house delivery, recently added third-party partners to complement its own channel. 

With this announcement, Bloomin’ Brands seems to be following Panera’s lead, having spent the past two years developing its own in-house delivery platform that is now used by company-owned Outback and Carrabba’s restaurants, according to the release. The addition of DoorDash will complement Outback’s infrastructure and enable the company to scale its delivery more quickly. 

There’s a good reason Outback is wanting to ramp up this channel. During the company’s Q2 call in July, Deno said the “off-premises business continues to perform very well” and is exceeding internal benchmarks against key metrics. Also, he said the business is profitable.

The company tested third-party companies while developing its in-house platform. Deno said its research from this test shows the third-party customer is different and has “distinct” purchasing patters. 

“Importantly, this will help expand our reach to customers who are loyal to the third-party delivery companies,” he said.

DoorDash is an ideal partner. The company has also been on a steep growth trajectory, growing 280% year-over-year. It now also partners with 90% of the top 100 restaurant chains offering delivery, no doubt exposing potential new customers to Outback’s menu. Also, the company recently acquired Caviar, a delivery platform that focuses on premium restaurants, which could open up steak-loving consumers to Outback’s steakhouse menu if they want to spend a little less on any given night.  

Bloomin’ Brands is also familiar with DoorDash and its infrastructure. Bonefish Grill already uses the company for the dinner daypart and has expanded delivery to also include lunch. Notably, Bloomin’s confidence in DoorDash extends beyond Outback; more than 200 Carrabba’s locations will add the DoorDash option by the end of October, according to the press release.