DOCSLIB.ORG

SPECIAL REPORT Meal Kit Delivery March 2018 20 Market Roll-Up Methodology

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
SPECIAL REPORT Meal Kit Delivery March 2018 20 Market Roll-Up Methodology SPECIAL REPORT Meal Kit Delivery March 2018 20 Market Roll-up Methodology Quick-Track® is a syndicated, quantitative research study that tracks key consumer behavioral and attitudinal measures for all major fast-food and pizza chains in individual markets. Data is collected from respondents via internet interviews conducted on a continuous basis throughout the quarter. Respondents are males and females, between the ages of 16 and 64, who purchase food from fast-food and pizza restaurants at least once in a typical month. The data is weighted slightly to reflect the proper distribution of the population by gender and age in the DMA based on the 2010 Census. In March 2018, 2,510 Quick-Track respondents in 20 Markets were also asked a series of special questions related to their awareness, usage and satisfaction with home meal kit delivery. This subject was initially queried in September, 2016. QSR Value Report l 20 Markets November 2017 2 Background Quick-Service Restaurants face fierce competition – not only from other fast-food chains but also from casual dining chains that are focusing more on off-premise occasions, from emerging fast-casual chains, from freshly prepared offerings from C-stores & grocery stores, and from the relatively new execution of home meal replacement options – Meal Kit Delivery. Even the relatively new Meal Kit Delivery industry faces new competition from grocery stores who are getting into the meal kit game and from college campuses that are making meal kits available to students. QSR Value Report l 20 Markets March 2018 3 Key Findings Since fall of 2016, more QSR users have tried Meal Kit Delivery companies or are at least aware of them. In fact, MKD trial is up from 14% to 20%. 16-34 year-olds are twice as likely as 35-64 year-olds to have tried MKD. Some of the MKD companies that Quick-Track measured in 2016 no longer exist or have been acquired. Sun Basket was noted as a top MKD by several news outlets and we added it to the fairly large mix of competitors. Blue Apron is by far the largest with almost twice as many triers as its nearest competitor Hello Fresh. About 70% of QSR user triers of Meal Kit Delivery companies award the experience with top 2 box satisfaction – mirroring the average QSR chain overall rating. Intent to repurchase is strong among those that have tried any MKD, with 8 in 10 likely to repurchase. About 2 in 3 who are aware of MKD companies and have not yet tried intend to try. Unfortunately for the restaurant industry, the desire to eat out is not what’s hindering repurchase likelihood among MKD triers – it’s cost and taste. While restaurants woo back diners with low-cost and tasty offers, a renewed focus on making the overall experience exceed expectations would help remind QSR users that it’s fun to go out to restaurants and create more perceived advantages over the Meal Kit Delivery insurgence. QSR Value Report l 20 Markets March 2018 4 Meal Kit Delivery trial and awareness has grown since fall 2016 MKD Awareness/Trial Triers of Any MKD - 2018 100% 0% 5% 10% 15% 20% 25% 30% 90% 25% Unaware All 20% 80% 41% 70% Male 23% 60% Aware 50% Non Triers 55% Female 18% 40% 45% 30% 16-34 28% 20% Triers 10% 20% 14% 35-64 14% 0% Sep-16 Mar-18 The 1 in 5 QSR users that have tried any home meal delivery service have tried 2.5 different companies on average. Trial skews strongly toward the young and slightly male. Meal Kit Delivery - Special Report March 2018 5 Meal Kit Delivery segment remains fragmented Specific Company Triers Among all QSR Users 0% 2% 4% 6% 8% 10% 12% 14% 16% 5% Blue Apron 12% 4% Hello Fresh 7% 5% Home Chef 5% 3% Plated 4% Sep-16 Green Chef 3% 4% Mar-18 Sun Basket 4% 3% Chef'd 4% 3% Terra's Kitchen 4% 3% Peach Dish 3% 4% Purple Carrot 3% Other MKD services 5% Blue Apron remains the category leader with more than 1 in 10 QSR users having tried the service. Some of the other providers remain regionally available or differentiate on organic or recyclable packaging. Meal Kit Delivery - Special Report March 2018 6 As MKD users try more than one provider, they have comparison for satisfaction and are slightly more critical than in 2016 Overall Satisfaction Likelihood to Reorder Top 2 Box – among triers of each MKD Top 2 Box – among triers of each MKD 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Blue Apron Blue Apron Chef'd Chef'd Green Chef Green Chef Hello Fresh Hello Fresh Sep-16 Sep-16 Home Chef Home Chef Mar-18 Mar-18 Peach Dish Peach Dish Plated Plated Purple Carrot Purple Carrot Terra's Kitchen Terra's Kitchen Sun Basket Sun Basket Other MKD services Other MKD services Trier samples fall between 68 for Purple Carrot and 291 for Blue Apron. MKD overall satisfaction rivals that of traditional fast-food in 1Q18 and trails fast-casual. Likelihood to reorder is still very strong, with 8 in 10 likely to repurchase MKD. Meal Kit Delivery - Special Report March 2018 7 Although naysayers remain a small minority, more cite expense and not liking food as deterrent to reorder than in 2016 Why are you unlikely to reorder from each company? QSR respondents who have tried at least one company and are unlikely to reorder 40% 35% 34% Sep-16 Mar-18 30% 28% 25% 20% 20% 18% 20% 18% 15% 17% 15% 15%15% 15% 14% 14% 10% 13% 12% 10% 10% 10% 9% 9% 8% 8% 8% 5% 6% 7% 6% 6% 6% 5% 5% 5% 4% 0% • Quality, packaging and difficult order process are less of an issue than in 2016. • Unfortunately for restaurants, and perhaps indicative of the opportunity, a greater desire to eat in at any type of restaurant is not much of a deterrent to reordering meal kits. Meal Kit Delivery - Special Report March 2018 8 As more consumers become aware of MKD or have tried one of the options, remaining unaware consumers are less likely to try Trial Likelihood by Company Trial Likelihood in General Top 2 Box – among aware non-triers Top 2 Box – among unaware of any MKD company 0% 20% 40% 60% 80% 100% 0% 10% 20% 30% 40% 50% Blue Apron All Chef'd Green Chef Hello Fresh Male Sep-16 Sep-16 Mar-18 Home Chef Mar-18 Peach Dish Female Plated Purple Carrot 16-34 Terra's Kitchen Sun Basket 35-64 Other MKD services Still, newly aware young users and males are more likely to try meal kit delivery than their older counterparts or female users. Meal Kit Delivery - Special Report March 2018 9 How can we help? Sales / Marketing ROBERTA LONG HOLLY BALES CLAY RAYMER 404.378.6139 888.897.7881 (option 1) 888.897.7881 (option 2) [email protected] [email protected] [email protected].
Load more

Recommended publications
  • KMO170129 Delivery Whitepaper
    THE REVENUE ENGINE 5 Factors Fueling the Takeoff of Delivery & Takeout Fasten your menus! More and more restaurants are jumpstarting business with help from takeout and delivery services. From a trickle of dine-in foot traffic to the fast lane of to-go orders, sales are picking up speed thanks to this turbo-charged trend. 1. ACCELERATING DEMAND A decline in foot traffic for 6 quarters in a row has compelled Drawn to its easy accessibility and convenient meal solutions, restaurants to find a way to turn the corner on customer millennials in particular are driving the delivery and takeout acquisition and retention. Takeout and delivery have proven trend to new heights. On the mark for their on-the-go to be a reliable road to increased sales, exponentially lifestyles, delivery and takeout meet the millennial need for expanding the reach of restaurants and allowing them to speed, as technology streamlines the order and payment accommodate even more customers than their dining rooms process and removes the roadblock of human interaction. can accommodate. QUICK BITE: Chains like Papa John’s and Domino’s that excel at delivery are RUNNING pulling ahead in sales.1 THE NUMBERS average rate at which estimated value of $ 5X consumers surveyed 2016 global food 114 2 /mo. purchase takeout1 billion delivery market of consumers surveyed order more often % purchase takeout 10x % from fast casual 1 19 per month 49 restaurants1 order fast food of all restaurant visits % to-go more % consisted of to-go 79 often1 61 orders in 20163 DID YOU KNOW? Pizza Hut is grabbing a bigger slice of the delivery and takeout pie.
    [Show full text]
  • MUNCHERY, INC., Debtor. Case No
    UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION In re: Case No. 19-30232 (HLB) MUNCHERY, INC., Chapter 11 Debtor. FIRST AMENDED JOINTLY PROPOSED COMBINED CHAPTER 11 PLAN OF LIQUIDATION AND TENTATIVELY APPROVED DISCLOSURE STATEMENT DATED AS OF JUNE 10, 2020 INTRODUCTION This is the First Amended Jointly Proposed Combined Chapter 11 Plan of Liquidation and Disclosure Statement (the “Plan”), which is being proposed by Munchery, Inc. (the “Debtor”) and the Official Committee of Unsecured Creditors of the Debtor (the “Committee”) in the above- captioned chapter 11 case (the “Chapter 11 Case”) pending before the United States Bankruptcy Court for the Northern District of California, San Francisco Division (the “Bankruptcy Court”). The Plan identifies the classes of creditors and describes how each class will be treated if the Plan is confirmed. The treatment of many of the classes of creditors is intended to be consistent with a Restructuring Support Plan and Term Sheet (the “Settlement Term Sheet”), which was previously approved by the Bankruptcy Court. Part 1 contains the treatment of secured claims. Part 2 contains the treatment of general unsecured claims. Part 3 contains the treatment of administrative and priority claims. Part 4 contains the treatment of executory contracts and unexpired leases. Part 5 contains the effect of confirmation of the Plan. Part 6 contains creditor remedies if the Debtor defaults on its obligations under the Plan. Part 7 contains general provisions of the Plan. Creditors in impaired classes are entitled to vote on confirmation of the Plan. Completed ballots must be received by counsel to the Debtor, and objections to confirmation must be filed and served, no later than August 7, 2020 at 5:00 p.m.
    [Show full text]
  • FUTURE of FOOD a Lighthouse for Future Living, Today Context + People and Market Insights + Emerging Innovations
    FUTURE OF FOOD A Lighthouse for future living, today Context + people and market insights + emerging innovations Home FUTURE OF FOOD | 01 FOREWORD: CREATING THE FUTURE WE WANT If we are to create a world in which 9 billion to spend. That is the reality of the world today. people live well within planetary boundaries, People don’t tend to aspire to less. “ WBCSD is committed to creating a then we need to understand why we live sustainable world – one where 9 billion Nonetheless, we believe that we can work the way we do today. We must understand people can live well, within planetary within this reality – that there are huge the world as it is, if we are to create a more boundaries. This won’t be achieved opportunities available, for business all over sustainable future. through technology alone – it is going the world, and for sustainable development, The cliché is true: we live in a fast-changing in designing solutions for the world as it is. to involve changing the way we live. And world. Globally, people are both choosing, and that’s a good thing – human history is an This “Future of” series from WBCSD aims to having, to adapt their lifestyles accordingly. endless journey of change for the better. provide a perspective that helps to uncover While no-one wants to live unsustainably, and Forward-looking companies are exploring these opportunities. We have done this by many would like to live more sustainably, living how we can make sustainable living looking at the way people need and want to a sustainable lifestyle isn’t a priority for most both possible and desirable, creating live around the world today, before imagining people around the world.
    [Show full text]
  • The Challenges of Online Grocery
    EARLY SIGNS OF COST CHALLENGES TO ONLINE GROCERY. JANUARY 2018 THE CHALLENGES OF ONLINE GROCERY JANUARY 2018 On Friday, November 3, 2017, Amazon Fresh according to Bloomberg’s Ellen Huet. She elaborates customers in “select zip codes” across the US that once the higher cost structure is accounted for, received the news that their delivery service would “…it’s unclear where the margin comes from.”8 be terminated. Jack O’Leary of Planet Retail RNG noted, “AmazonFresh has always been an COMPOSITION OF ADDED COSTS OF ONLINE GROCERY economically challenging program to operate without scale,” and, “That scale is tough to reach in (% OF TOTAL) Grocery Home many areas.”1 Rival services such as Peapod and Store Delivery Mailed Instacart have encountered similar struggles to date. Curbside From Meal Kit Cost Driver Pickup Warehouse Service In fact, Peapod was only profitable in three of its 12 markets in 2016 and, on a recent conference call, Jeff Added 14.0% 11.2% Carr, the CFO of Peapod’s parent company Ahold Warehousing Delhaize, remarked, “We’re not happy with Peapod’s Store Shopping 28.9% performance, but we feel confident we’ll be able to Labor improve that performance.”2, 3 Meanwhile, Instacart, Order Assembly 50.4% which delivers groceries from a network of Expenses independent physical stores, is “unit profitable” in Home Delivery 39.5% ten of their 19 markets, meaning that an average Expenses order is profitable in ten markets and unprofitable in Other 71.1% 46.5% 38.4% the other nine.4 This is before overhead expenses Expenses such as corporate administration, marketing, and Source: Sinha, Amithabh and Paul Weitzel.
    [Show full text]
  • Sweet on Desserts
    DIY DINNERS: HOW TO BUILD A DESIGN STRATEGIES THAT MEAL KIT PROGRAM 10 16 SET THE MOOD JUNE 2016 VOLUME TWO n ISSUE TWO SweetSweet onon DessertsDesserts Gelato bars, retro treats, artisan donuts and more PAGE 4 Bi-Rite Market taps into San Francisco’s culinary talent pool PAGE 26 GRO 0616 01-07 Desserts.indd 1 5/23/16 9:13 PM 570 Lake Cook Rd, Suite 310, Deerfield, IL 60015 • 224 632-8200 http://www.progressivegrocer.com/departments/grocerant Senior Vice President Jeff Friedman 201-855-7621 [email protected] IS FAILURE EDITORIAL Editorial Director Joan Driggs 224-632-8211 [email protected] Managing Editor Elizabeth Brewster Art Director Theodore Hahn [email protected] Contributing Editors THE NEW Kathleen Furore, Kathy Hayden, Amelia Levin, Lynn Petrak, Jill Rivkin, Carolyn Schierhorn, Jody Shee ADVERTISING SALES & BUSINESS Midwest Marketing Manager John Huff NORMAL? 224-632-8174 [email protected] Western Regional Sales Manager Elizabeth Cherry 310-546-3815 [email protected] Eastern Marketing Manager Maggie Kaeppel It doesn’t have to be. 630-364-2150 • Mobile: 708-565-5350 [email protected] Northeast Marketing Manager Mike Shaw 201-855-7631 • Mobile: 201-281-9100 [email protected] Marketing Manager Janet Blaney (AZ, CO, ID, MD, MN, MT, NM, NV, OH, TX, UT, WY) [email protected] 630-364-1601 Account Executive/ Classified Advertising Terry Kanganis 201-855-7615 • Fax: 201-855-7373 [email protected] General Manager, Custom Media Kathy Colwell 224-632-8244 [email protected]
    [Show full text]
  • Online Food and Beverage Sales Are Poised to Accelerate — Is the Packaging Ecosystem Ready?
    Executive Insights Volume XXI, Issue 4 Online Food and Beverage Sales Are Poised to Accelerate — Is the Packaging Ecosystem Ready? The future looks bright for all things ecommerce primary and secondary ecommerce food and beverage packaging. in the food and beverage sector, fueled by What do the key players need to consider as they position themselves to win in this brave new world? Amazon’s purchase of Whole Foods, a growing Can the digital shelf compete with the real thing? millennial consumer base and increased Historically, low food and beverage ecommerce penetration consumer adoption rates driven by retailers’ rates have been fueled by both a dearth of affordable, quality push to improve the user experience. But this ecommerce options and consumer inertia. First, brick-and-mortar optimism isn’t confined to grocery retailers, meal grocery retailers typically see low-single-digit profit margins due to the high cost of managing perishable products and cold-chain kit companies and food-delivery outfits. distribution. No exception to that rule, ecommerce retail grocers struggle with the same challenges of balancing overhead with Internet sales are forecast to account for 15%-20% of the food affordable retail prices. and beverage sector’s overall sales by 2025 — a potential tenfold increase over 2016 — which foreshadows big opportunities for Consumers have also driven lagging sales, lacking enthusiasm for food and beverage packaging converters that can anticipate the a model that has seen challenges in providing quick fulfillment evolving needs of brand owners and consumers (see Figure 1). and delivery service — especially for unplanned or impulse And the payoff could be just as lucrative for food and beverage buys.
    [Show full text]
  • Disruption in Fruit and Vegetable Distribution
    DISRUPTION IN FRUIT AND VEGETABLE DISTRIBUTION FRUIT LOGISTICA TREND REPORT 2018 IN COOPERATION WITH PRESENTED AT world of fresh ideas IMPRESSUM FRUIT LOGISTICA TREND REPORT 2018 DISRUPTION IN FRUIT AND VEGETABLE DISTRIBUTION A special trend report for the international fresh produce business, commissioned by Fruit Logistica and produced by Oliver Wyman. REPORT AUTHORS @ OLIVER WYMAN Nico Hemker Cornelius Herzog Dr Michael Lierow Rainer Münch Philipp Oest Guillaume Thibault Jens Torchalla Jens von Wedel Dustin Wisotzky EDITORIAL & DESIGN @ FRUITNET MEDIA INTERNATIONAL Mike Knowles Johnny Innes Simon Spreckley PRODUCTION Oliver Wyman www.oliverwyman.com Tel +49 (0)89 939 490 PUBLISHER Messe Berlin GmbH Messedamm 22, 14055 Berlin [email protected] www.fruitlogistica.com Copyright © 2018 Oliver Wyman All rights reserved. Unauthorised publication or reuse in any form whatsoever of all or part of the content of this publication is expressly forbidden without the prior written permission of the publisher. Printed in Germany 2 FRUIT LOGISTICA TREND REPORT 2018 PREFACE Dear members of the fresh produce trade, Here at FRUIT LOGISTICA, we place the greatest importance on providing you, exhibitors and visitors alike, with valuable information that can help you make decisions. New this year is the publication of this Trend Report. Entitled Disruption in Fruit and Vegetable Distribution, it scrutinises developments in the wider business world and how they will affect the fruit and vegetable sector. It focuses on three areas – cold chain logistics and technology, the rise of online retail, and foodservice. Wherever you work in the fresh produce industry, Disruption in Fruit and Vegetable Distribution will enable you to anticipate key issues affecting the trade, and help stakeholders and decision- makers to understand them better.
    [Show full text]
  • CAMPAIGN STRATEGY “Fearlessly Pursuing Growth and Innovation Within Our Company, Culture, and Client Relationships” Cultivate Team
    CAMPAIGN STRATEGY “Fearlessly pursuing growth and innovation within our company, culture, and client relationships” Cultivate Team Eleni Michaelides Carley Crossman Caroline Norton Michael Biehl Gaby Villarino Chief Executive Chief Financial Account Director Chief Digital Social Media Officer Officer Analyst Director CATEGORY MEAL KIT INDUSTRY Meal kit industry was valued at $5 billion in 2017 Forecasts predict the industry will reach $10 billion by 2020 Interest is fueled by: • Value • Convenience • Time savings 19% of adults who cook have used a meal kit service, 30% more are interested in trying it MEAL KIT INDUSTRY Interest and Usage Interest is highest among 18 – 24 year olds Actual usage is highest for 25 – 44 year olds Meal kit interest peaks for $75K - $99.9K earners Data from Mintel “SAY HELLO TO EASY HOME COOKING” One of the more well known meal delivery kit services with a variety of 15 new recipes created each week. Pricing begins at $8.75 Pros Cons •Excellent packaging •Not all ingredients are organic •Free shipping •Long delivery time window •Variety of recipes •“Fit option” with less than 650 calories Brand Perception •Most well known •International presence and high social interaction through celebrity sponsors “SAY HELLO TO EASY HOME COOKING” Instagram–308k followers •90 posts per month •Cooked meals #hellofreshpics •#HelloFreshPets raise awareness Facebook–1.8M followers •45 posts per month •News, recipes, advertising and cooking videos Twitter–30.8k followers •95 posts per month •Recipes Dinner2Lunch campaign “We’re
    [Show full text]
  • Grocery and Pharmacy Home Delivery Options
    800.657.0243 | BEECHERCARLSON.COM GROCERY AND PHARMACY HOME DELIVERY OPTIONS As of April 8, 2020 The CDC recommends that individuals follow guidance from authorities where they live regarding social distancing. Cover your mouth and nose with a cloth face cover in community settings, including when you have to go out in public, especially in situations where you may be near others (e.g. grocery stores or pharmacies). These face coverings are not a substitute for social distancing and should be used in combination with hand washing, using hand sanitizers and staying 6 feet apart from others. In areas where there is widespread COVID-19 illness, the CDC recommends staying home as much as possible and considering using alternatives including: » Mail-order or delivery services for medications that are used regularly » Grocery delivery service COVID-19 transmission peaks will vary by geography. During such times, there are resources to order and have groceries/prescription drugs delivered. Please see below and note that each organization’s capacity and delivery timeframes change frequently. © 2020 COPYRIGHT BEECHER CARLSON INSURANCE SERVICES, LLC; ALL RIGHTS RESERVED. | 1 PHARMACY DELIVERY There are various options for having medications delivered to your home. Each pharmacy will have information on how to switch a retail prescription to mail-order for recurring medications, how to get a 90-day supply of medications that are regularly used, and whether their store is offering drive-thru as an alternate option. Other organizations are simply offering home delivery. Check with your pharmacy benefit manager to confirm that the pharmacy you are considering ordering from is in their retail network.
    [Show full text]
  • Place Your Order Meal Prep and Delivery Services
    I’ll take my shipping free with a side of unlimited movies Acxiom offers an audience of likely Amazon Prime subscribers. Tap into this lucrative pool of savvy online shoppers who also take advantage of exclusive access to movies and TV shows, ad-free music and more. Looking for those who want it fresh and fast? From those who want fresh ingredients waiting on the doorstep to those who want their food hot and ready from a restaurant, Acxiom introduces audiences including: • Those likely to order fresh food for meal preparation using an online service like Blue Apron, Plated or Hello Fresh • Those with a propensity to order groceries via an online service like Amazon Fresh, Fresh Direct or Instacart • Consumers who order restaurant deliveries from an online service like GrubHub or Eat24 • Consumers likely to make restaurant reservations online using services like OpenTable Meal Kit Delivery Hello Fresh, Plated, Blue Apron, Omaha Steaks This industry is growing fast, even among non-retail companies, such as the New York Times launching its own service in partnership with startup Chef’d, which sends subscribers meal kits that sync up with recipes posted on the Times’ cooking site. Grocery Delivery AmazonFresh, Instacart, Fresh Direct Shopping online is now a standard in most households. Consumers who want fresh food and convenient home delivery are becoming a threat to local brick-and-mortar stores. The three major online grocery plans are Instacart, FreshDirect and AmazonFresh. Restaurant Local Delivery Grubhub, Eat24, Chef Shuttle, Seamless, All Menus $210 billion worth of food is ordered for delivery or takeout each year in the U.S.; $11 billion of that is online delivery, with non-pizza online deliveries totaling $4 billion.
    [Show full text]
  • Freshdirect Updates Delivery Service Online Grocer Is Making a Play for More Last‐Minute Shoppers with Delivery in As Little As One Hour
    FreshDirect Updates Delivery Service Online grocer is making a play for more last‐minute shoppers with delivery in as little as one hour A taco ‘bundle’ from FreshDirect’s FoodKick, a new on-demand delivery service launching Thursday. PHOTO: FOODKICK By SOPHIA HOLLANDER Jan. 12, 2016 8:00 p.m. ET With competition heating up among food-delivery services in New York City, FreshDirect is making a play for more last-minute shoppers. On Thursday, the online grocer will launch a new service called FoodKick that it said will be able to deliver meals, ingredients and alcohol in as little as an hour after the order has been placed. FoodKick will be available in some Brooklyn neighborhoods and Queens’s Long Island City, with plans to expand to other parts of the city and possibly nationally, the company said. FreshDirect, which began delivering groceries in 2002, has until now required customers to place orders at least a day before delivery. But in interviews with customers it became clear that “the vast majority of the marketplace actually aren’t planners,” said its chief executive, Jason Ackerman. That includes working couples coming home to an empty fridge but tired of takeout, or friends getting together and deciding to stay for dinner. “There are all these food moments that happen spontaneously,” Mr. Ackerman said. “Different generations have different behaviors, so you have to constantly update yourself.” ‘There are all these food moments that happen spontaneously. Different generations have different behaviors, so you have to constantly update yourself.’ —Jason Ackerman, chief executive of FreshDirect The company will offer free FoodKick deliveries for the first 30 days, then $3.99 for delivery within a two-hour or longer window and $5.99 for one-hour delivery.
    [Show full text]
  • AGC-Restaurant-Tech-Nov-2019
    Type & Color November, 2019 INSIGHTS The Future of Restaurant Technology How Technology is Transforming the Restaurant Industry Greg Roth, Partner Ben Howe, CEO Jon Guido, Partner & COO Sean Tucker, PartnerAGC Partners ExecutiveType & Color Summary Massive $900B market experiencing rapid digital adoption and software growth . An extended economic recovery, low unemployment rate, and continued rise of millennials as the largest demographic in the workplace are factors driving strong restaurant spending . Third party delivery market is exploding; eating in is the new dining out US Digital Restaurant Sales . Cloud based POS systems are replacing incumbent providers at an accelerating pace and ($ Billions) achieving higher ACV with additional features and functionality $328 . Front of house applications including Online Ordering, CRM and Loyalty programs are other areas of accelerating spend in order to capture more valuable repeat diners 27% CAGR . Razor thin profit margins and unique challenges restaurants face require purpose built solutions to cut costs, gain efficiencies, and increase visibility . Hiring, training and retaining workers in a complex and changing regulatory environment is one $117 of the largest challenges restaurants face $48 . Unlocking of data silos enabling business analytics across the value chain . Automation and AI beginning to impact restaurant operations and economics, freeing up scarce employee resources to focus on customers 2017 2020 2025 . Ghost Kitchens and Online Catering are two emerging growth areas taking advantage of online Note: based on estimated percentage of sales derived from digital channels and total industry sales forecasts delivery trends and attractive unit economics . Restaurant Management Software spend tilted towards front of house (~60%) technologies vs.
    [Show full text]