Bite Squad switching to Tesla Model 3s

Bite Squad wants to go electric.

The Minneapolis-based restaurant delivery service, which now operates in 30 markets around the country after a flurry of acquisitions last year, is taking the first steps to swap out its fleet of hybrid vehicles for Tesla Model 3s.

It plans to test a handful of the battery-powered cars on the road in its home base of Minneapolis this fall.

If the cars perform as hoped, executives plan to begin transitioning the rest of the fleet of several hundred Toyota Priuses to Teslas over time. The delivery service also relies on drivers to use their own personal vehicles. Company-owned vehicles account for about 10 percent of the fleet.

"We think it could be a big game-changer for us both in terms of cost and liability and safety," said Craig Key, the company's vice president of marketing.

The cars themselves are similar in price to a Prius but would save on fuel costs, which are a big expense to the company, as well as on maintenance for things like oil changes. In addition, Bite Squad hopes Tesla's assisted driving technology will lead to fewer accidents.

Tesla has promised to enable the cars down the road with full self-driving capabilities — technology that is appealing to delivery firms like Bite Squad. While Bite Squad executives said the self-driving component is an additional draw to using Teslas, they said it's going to be awhile before the company does driverless deliveries.

In the meantime, Bite Squad is crossing its fingers it will have its Tesla Model 3s delivered by early this fall after placing its reservation for them late last year. The car manufacturer has not been able to keep up with demand for its cars and has a big backlog of orders.

"We're waiting on our order still," said Key. "We're at Tesla's mercy like everybody else."

In addition to transitioning to electric vehicles, Bite Squad is also working this year to roll out a number of digital payment options such as Apple Pay and Google Wallet. It's also exploring cryptocurrencies.

KAVITA KUMAR

Bon-Ton stores announced Wednesday that it is closing 47 stores in 2018, including department store names such as Herberger's, Carson's, Bergner's and Elder-Beerman.

Most of the store closings are in Wisconsin, Indiana, Illinois, Pennsylvania and Iowa. The only Minnesota store on the list is the Herberger's Clearance Center in Maplewood, which may have been unfamiliar to many, although it had its share of devoted fans.

The store, which is the only Herberger's outlet in the country, is expected to close in 10 to 12 weeks, according to a store employee. Closing signs were put up Wednesday evening. Three other clearance centers under the Carson's and Boston banners are also closing in other states.

The Herberger's outlet opened in 2014 in the Birch Run Station strip mall selling many items at 70 percent off the regular retail price.

What made the outlet different from most is that all of the merchandise came from Bon-Ton's full-line stores, rather than having goods made specifically for the clearance center. The Maplewood location has a sizable home-goods section, in addition to women's and men's clothing and accessories,

Herberger's has 20 full-line stores in Minnesota, including St. Paul Midway, Southtown, Southdale and the recently remodeled Rosedale store. The Rosedale store is only a few miles from the clearance outlet.

Kavita Kumar • 612-673-4113

John Ewoldt • 612-673-7633