BJ's Restaurants (BJRI) Announces Launch Of Alcohol Delivery

BJ’s Restaurants, Inc. (BJRI - Free Report) has announced the launch of a fully integrated online ordering platform along with alcohol delivery.

Customers in select California markets will now be able to add six packs of BJ's Restaurants popular craft beer to their order via the company’s pilot alcohol delivery program in partnership with technology company, DoorDash. Five varieties of craft beers and 25 assortments of wine are available to customers, above the age of 21, for order through the DoorDash app or directly from BJ's Restaurants.

Interestingly, with this latest move, the company has become one of the first national restaurant brands to offer on-demand delivery of craft beer. In fact, to make food and beverage delivery even more convenient, BJ's Restaurants has integrated DoorDash into its website and mobile app, so as to provide customers, particularly millennials, with a swift and seamless ordering experience.

Moreover, the move comes on the heels of the company’s recently announced partnership with DoorDash to initially launch door-to-door delivery at select BJ’s Restaurant & Brewhouse locations.

In fact, DoorDash, which connects customers with their favorite local and national businesses in more than 500 cities across the United States and Canada through door-to-door delivery, has similar partnerships with the likes of Dunkin' Brands Group, Inc. (DNKN - Free Report) , Jack in the Box Inc. (JACK - Free Report) and The Wendy's Company (WEN - Free Report) as well.

Meanwhile, shares of BJ’s Restaurants have declined 19% year to date, substantially underperforming 5.6% growth of the industry it belongs to. Soft consumer spending environment in the U.S. restaurant space hurt BJ's Restaurants’ comps growth and put sales under pressure.

Nevertheless, in order to navigate the challenging macroeconomic situation, the company is consistently following up on several major sales building initiatives, which have been tested over the last year.

In this regard, BJ’s Restaurants has completed the installation of new slow roasting ovens and has rolled out new server hand-held ordering tablets at all its restaurants. Moreover, the company had been testing third-party delivery services as part of these initiatives because delivery has become a growing area for the industry, driven by ease of access.

Thus, though an uncertain sales environment and a slowdown in the company’s 2017 development plan remain concerns, we expect the roll out of the alcohol delivery service to result in increased convenience for customers and add to BJ’s Restaurants top line, going forward.

BJ’s Restaurants currently carries a Zacks Rank #5 (Strong Sell).

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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