US: Grubhub announces layoffs amid long-term decline in brand health
Last month, food delivery platform Grubhub laid off 15% of its corporate workforce (400 of its employees). Announcing the layoffs, the company cited the need to maintain “competitiveness” and “succeed in the long term.”
We look at how Grubhub’s brand health has been in recent years.
According to YouGov BrandIndex - which tracks consumer sentiment towards thousands of brands daily - Grubhub's brand health has dipped January 2021 onwards. For instance, the brand’s Index score, which is a measure of overall brand health taking into account perceptions of Value, Satisfaction, Reputation, Recommend, Quality and Impression remained mostly unchanged between January 2019 and March 2021. But Grubhub’s Index score has slipped since then, from a net score of 6 in March 2021, three points lower to 3 in June 2023.
The brand’s Reputation score, which checks whether consumers would be proud or embarrassed to work for the brand, has also dropped from pre-pandemic numbers. The metric dipped from a net score of 5 in January 2021 to 2 to June 2023.
Grubhub’s Current Customer score improved four percentage points from 3% in January 2019 to 7% in March 2021. But the metrics has remained mostly unchanged since then. From a net score of 3 in January 2019, the brand’s Value score - which measures whether the brand represents poor or good value for customers’ money - remained mostly unchanged until January 2021. The score dropped 2021 onwards, from a net score of 2 in January 2021 to -1 in June 2023.
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Methodology: YouGov BrandIndex collects data on thousands of brands every day. Grubhub’s Current Customer score is based on the question: Have you visited any of the following online brands in the past 30 days? and delivered as a percentage. Its Value score is based on the question: Which of the following online brands do you think represents good value for money/poor value for money? and delivered as a net score between –100 and +100. Its Index score is an average of Impression, Value, Quality, Reputation, Satisfaction and Recommend scores and delivered as a net score between -100 and +100. Its Reputation score is based on the question: Which of the following companies would you be proud to work for/embarrassed to work for? and delivered as a net score between -100 and +100. Scores are based on an average daily sample size of 35452 US adults between January 1, 2023 and June 30, 2023. Figures are based on a four-week moving average. Learn more about BrandIndex.
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