M.H. Alshaya Company, Alshaya, launched its home delivery service for some of its casual and fast casual food service brands on the mid of of February. The launch was expected since Alshaya has a long track record of strongly controlling its brand portfolio. The website, http://www.alshayadelivery.com, currently offers two services, pickup and delivery. Seven restaurants are offering their home delivery services via the website and it is expected to increase over time. The restaurants offering home delivery are Pizza Express, Potbelly, Pinkberry, Pei Wei, Ashas, Sprinkles Cupcakes, and Garrett Popcorn. All seven restaurants are currently listed in Talabat.com which leaves a question whether Alshaya will pull them down from the website and solely offers its delivery through its website. National Arab Company (a subsidiary of Bukhamseen Holding Group) that owns and operates Sakura, Ribeye Steakhouse, and Shabestan pulled their brands from Talabat after launching their online delivery website, http://ieatonline.com. It is worth to note that the designated delivery area structure is very similar to Talabat.com and the English translation of the areas is the same as those listed in Talabat.com. which makes you wonder whether the service was developed/hosted by Talabat. The new service is charging a standard 0.300 Fils for delivery for all brand but requires a minimum order that vary by brand. Sprinkles cupcake requires the highest minimum order with KWD 7.500 while Garrett popcorn does not require minimum charge mainly because its cheapest item on the menu is KWD 6.950.
Alshaya’s serious move into delivery is putting other competing casual and fast casual brands under heat. The company is expanding its food service portfolio and entering in most food service categories. The main limitation of the service is that three of its listed brands in the delivery website are located in the Avenues Mall; Garrett Popcorn, Sprinkles Cupcakes, and Pei Wei. Outlets situated in retail locations are hard to manage their delivery service due to the long distance between delivery vehicles and outlets. Moreover, the area surrounding the Avenues is highly trafficked at night time making their delivery time long. Another limitation is that the company is keen to maintain its food quality upon delivery which is mainly achieved by shorter delivery distances and times. Ashas for example only operates one outlet located in the Marina Crescent in Salmiya and the brand only delivers to Salmiya and Rumaithia. Other brands such as Pizza Express that operates five outlets and only delivers to surrounding areas of their branches.
Despite the previously mentioned challenges, the new service is expected to increase the company’s market share to beyond its dining outlets. Three conclusions we can take with us from this expansion, Alshaya is determined to expand its fast casual and casual dining geographic presence in Kuwait and therefore its delivery destinations. More brands are expected to be added to the delivery service such as Starbucks. Adding Starbucks to the delivery service will have a great advantage in adding new delivery locations mainly because of the brand’s wide geographic spread in Kuwait. Last but not least, Alshaya is putting greater pressure on other food service operators such as Americana, Kout Food, and National Arab Company to enhance their online delivery service and maintain their current home delivery sales market share.
Alshaya Company
Mohamed Humoud Alshaya Company is a limited liability (WLL) Kuwaiti registered company. The company was registered in Kuwait’s Chamber of Commerce on the 13th of January in 1960. Alshaya has become one of the largest retailing and franchising companies in the world with operations in more than 14 countries in the Middle East, North Africa, and Europe. The company manages and operates more than eight industries such apparel, food service, and home furnishing.
Global Markets
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