Grubhub Says “We’ll Eat the Fees”

Author

Andy Moore
February 06, 2026

Hello!

This week we’re talking:

  • Grubhub’s cut to its delivery fees

  • Chipotle’s 2026 plans

  • And McNugget Caviar

Read on…

3 Numbers

7%

Same-store-sales growth reported by Taco Bell for the 2025 year. The maestros of the Chalupa have been on a generational run over the past decade, with just one quarter of same-store-sales declines (the infamous pandemic-driven Q2 2020).

1,000

Zaxby’s locations that are now open. The Georgia-born chain hit the milestone thanks to two new locations that opened in Las Vegas and Phoenix — a sign of the chain’s push to break out of its regional Southeastern roots.

$73 billion

Impact McDonald’s has on the US economy, according to a study published by the research firm Oxford Economics (and commissioned by the Golden Arches). McDonald’s has been notably vocal in recent years about reminding people of its economic importance, which is pretty staggering — McD’s claims responsibility for around 1 million U.S. jobs, or 0.6% of all jobs in the country.

2 Big Stories

  1. Grubhub is making a sizable change as it works to catch up with DoorDash and Uber Eats, via TechCrunch:

On Monday, the company unveiled both its Super Bowl 2026 commercial and a significant policy change: … All delivery and service fees will be eliminated for restaurant orders exceeding $50. This initiative could deliver significant cost savings for customers and may increase Grubhub’s appeal in a fiercely competitive market.

The new Super Bowl advertisement stars actor George Clooney at an extravagant dinner party. As the host dramatically asks, “Who will eat the fees?” Clooney responds, “Grubhub will eat the fees.”

​Grubhub says this is a permanent offering aimed at putting more money back in customers’ pockets amid challenging economic times. The company notes that delivery and service fees on orders over $50 usually average about $13 per transaction across food delivery apps.

The move — which now appears to be in effect on Grubhub’s website — comes as Grubhub saw its users drop 20% year-over-year in 2025, and it puts Grubhub on a markedly different course than its larger competitors. Anyone who’s forgotten to turn off their Uber or DoorDash notifications knows that they have itchy trigger fingers when running no fees promos for a limited time. Grubhub, though, says this represents a permanent shift in its fee structure.

As many have noted, the economics of food delivery are already challenging. To make the numbers pencil out, Grubhub will presumably have to show sizable growth in its user base. As CEO Howard Migdal told Restaurant Business:

Migdal said the company has improved its scale, efficiency and speed to the point where it is comfortable “operating with a much reduced margin” in exchange for higher order volumes.

“We think we’re gonna significantly expand the [total addressable market], and we’re also placing a bet that we’re gonna get a lot of new customers as a result of this savings and value proposition,” he said.

  1. Chipotle is hoping for a better 2026 than 2025, via CNBC:

Chipotle on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations, although traffic to its restaurants fell for the fourth straight quarter.

For 2026, the company is projecting flat same-store sales growth, signaling that the burrito chain’s woes are not expected to disappear quickly. Chipotle ended a bumpy 2025 with a full-year same-store sales decline of 1.7%, marking the first annual decline since 2016.

However, executives said the outlook is “conservative,” citing unpredictable consumer trends. Last year, the company cut its full-year forecast for same-store sales three times as dining habits shifted from quarter to quarter.

…

The company’s same-store sales fell 2.5% for the quarter, making this reporting period the third quarter of the year with same-store sales declines…. Executives have previously said they have seen a pullback in spending from consumers of all income cohorts, although low-income diners have made the most significant shift to their behavior.

Other than 2016, which it spent dealing with the effects of several food-safety incidents, 2025 marks the first time that Chipotle has seen real sales declines. It’s pulling out all the stops to build traffic this year, including:

  • Increased marketing: It’s giving away $1 million in free entree codes on Instagram Reels during the Super Bowl this Sunday.

  • High-efficiency equipment: Which will eliminate prep time during peak periods and improve line throughput.

  • Menu #PROTEIN: Everyone’s favorite macro is getting more limited-time-offers in 2025, with Chicken al Pastor returning next week.

  • A rewards program relaunch: Which will boost rewards transactions by in-restaurant guests, and include, hopefully, helpful prompts to remind me to use the Free Entree reward I’ve forgotten to use on my last 15 visits.

Other Headlines

Name That Chain!

You’ve got three guesses to name this week’s mystery chain:

  • Its first location was a small, wood building in the countryside of a South American city; now its restaurants are as large as 10,000 square feet

  • Guests are encouraged to signal their readiness to receive more food — or to pause — without saying a word

  • Salad bars are technically part of the offering, but no one is really there for the salad

Find the answer at the bottom of the email…

#Content Recs

Power Moves

Here are some notable C-suite moves from the past week:

Thanks for reading! I’ll see you next week.

NAME THAT CHAIN ANSWER: Fogo de Chão

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