DOCSLIB.ORG

William Davis, Michael Firn, Jason Halsted, Julie Liang, Alex Lloyd George, Jason Pesek, Francesca Whitehead

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
William Davis, Michael Firn, Jason Halsted, Julie Liang, Alex Lloyd George, Jason Pesek, Francesca Whitehead William Davis, Michael Firn, Jason Halsted, Julie Liang, Alex Lloyd George, Jason Pesek, Francesca Whitehead Contact: Francesca Whitehead E-mail: [email protected] Phone: 401-560-0150 1 Table of Contents EXECUTIVE SUMMARY ................................................................................................................................. 3 COMPANY DESCRIPTION .............................................................................................................................. 4 THE PORTION MEAL KIT .................................................................................................................................... 4 TARGETING A YOUNG AND BUSY NICHE ........................................................................................................... 5 MARKET RESEARCH AND ANALYSIS ....................................................................................................... 5 THE INTERSECTION OF THREE GROWING MARKETS .......................................................................................... 5 COMPETITIVE LANDSCAPE RIPE FOR DISRUPTION ............................................................................................. 7 LISTENING TO OUR CUSTOMERS ........................................................................................................................ 8 FINANCIALS ..................................................................................................................................................... 10 COST OF GOODS SOLD ..................................................................................................................................... 12 Materials and Ingredients ........................................................................................................................... 12 Assembly and Delivery ................................................................................................................................ 13 OPERATING EXPENSES DRIVEN BY SALES & MARKETING .............................................................................. 14 MULTI-TIERED MARKETING PLAN ......................................................................................................... 15 BUILDING A LOCAL MEDIA PRESENCE ............................................................................................................ 15 ENGAGING OUR CUSTOMERS THROUGH SOCIAL MEDIA ................................................................................. 16 REWARDING CUSTOMER LOYALTY .................................................................................................................. 16 BROADENING EXPOSURE THROUGH GOOGLE’S AD PLATFORM ...................................................................... 16 A FRESH, SUSTAINABLE, AND CONVENIENT BRAND ....................................................................................... 17 CUSTOMER LIFETIME VALUE FAR EXCEEDS ACQUISITION COST .................................................................... 17 STREAMLINED OPERATIONS PLAN ........................................................................................................ 17 TAPPING INTO LOCAL PRODUCER ECOSYSTEMS ............................................................................................. 17 INTEGRATED LOGISTICS AND ASSEMBLY ........................................................................................................ 18 ON-DEMAND DELIVERY: AVAILABLE AT THE CLICK OF A BUTTON ................................................................ 18 ACCELERATED STARTUP SCHEDULE .................................................................................................... 18 EXPANDING THROUGH GEOGRAPHY AND PRODUCT OFFERINGS ............................................. 19 POINTED REGIONAL ROLLOUT ......................................................................................................................... 19 DIVERSIFYING TO ALL COURSES AND ALL MEAL-TIMES ................................................................................ 19 QUALIFIED MANAGEMENT TEAM ........................................................................................................... 20 ADVISORS BRING A WEALTH AND DEPTH OF EXPERIENCE ............................................................................. 21 CRITICAL RISKS AND ASSUMPTIONS ..................................................................................................... 22 FIERCE COMPETITION ...................................................................................................................................... 22 REGULATORY SCRUTINY AND SAFETY CONCERNS .......................................................................................... 23 LIMITED UPTAKE IN NON-URBAN AREAS ........................................................................................................ 23 ENSURING CONSISTENCY IN THE FACE OF SEASONALITY ................................................................................ 23 FOOD WASTE ................................................................................................................................................... 23 PROPOSED FUNDRAISING OFFERING .................................................................................................... 24 EXIT STRATEGY PROVIDES RETURN ON INVESTMENT .................................................................. 24 APPENDIX ......................................................................................................................................................... 25 2 Executive Summary More than ever, young people crave fresh and local food. Yet these same consumers also find themselves short on time. To a demographic that values convenience over all else, the process of planning a meal, buying food, and cooking requires too much time and effort for millennials to undertake often. To solve this problem, we designed Portion: a meal kit composed of locally sourced ingredients that is delivered on demand and designed to be cooked in 25 minutes or less. Portion appeals to young professionals by reconciling two opposing desires: increasing demand for healthy home-cooked meals, and decreasing disposable time. By sourcing locally from farms, we provide high-quality ingredients and sourcing transparency to customers. By distributing directly to the consumer, we streamline the food’s journey and preserve its freshness from farm to table. The product itself also prioritizes convenience—all ingredients are pre-chopped in the exact quantities corresponding to a single serving so that our customers can put a fully cooked meal on the table quickly and without any unwanted food waste or leftovers. These elements of our product—fresh, sustainable, and convenient—are key to the brand we will build through a multi-tiered marketing approach. This space is promising, but crowded. Portion operates at the intersection of three market segments: farm fresh food, meal kits, and online food delivery. Together these segments brought in $15 billion in revenue in 2015 and collectively project to grow 13.5% annually over the next 10 years. The success of meal kit subscription companies such as Blue Apron and Plated has proven that today’s consumer is willing to pay a premium for the convenience of fresh ingredients and novel recipes delivered to their door. But though these companies have reached a key subscription-oriented demographic, their model is ill-suited for consumers who cannot commit to the rigid schedule and recurring cost of a subscription. Portion differentiates itself through a disruptive on-demand delivery model, targeting an underserved stretch of the market. To realize our vision, Portion will maintain a focus on operational efficiency. Portion will source its ingredients through established local producer ecosystems that leverage excess distribution capacity to avoid distributor markups and keep prices low. Proprietary software development will allow us to optimize our delivery model, which sends drivers stocked with our product out to rove hot spots, distributing as they receive orders. Our operational efficiency will allow us to serve the flexible needs of our consumers, and reduce the cost of growth as we expand geographically from our launch market in Boston. In Year Five, Portion projects to sell 7.7 million meal kits in 12 cities, earning $110 million in revenue and $15 million in operating income. We seek a $5 million investment to finance capital expenditure on assembly locations, equipment, and software development, as well as recruiting staff and pursuing geographic and product expansion toward the end of our five-year plan. Our team brings experience in the food industry, financial services, warehouse operations, transportation of goods, industrial design, and marketing. Our extensive networks of advisors provide expertise in the food industry and startups in general. Portion management pools its experience to form a cohesive and invaluable team in pursuing this venture. 3 Company Description The Portion Meal Kit Portion provides access to farm- fresh ingredients while offering Figure 1 the dining flexibility demanded by busy, single consumers. Market trends indicate that customers increasingly crave fresh food, home-cooked meals, and convenience.1 Existing options address only some of these consumer needs: farmers' markets provide fresh and local food, but are inaccessible and do not facilitate varied cooking; subscription meal kits
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]
  • Global Delivery and Takeaway Food Market
    +44 20 8123 2220 [email protected] Global Delivery and Takeaway Food Market Report 2021 https://marketpublishers.com/r/GD9E8CD81AE5EN.html Date: March 2021 Pages: 122 Price: US$ 2,350.00 (Single User License) ID: GD9E8CD81AE5EN Abstracts At the beginning of 2020, COVID-19 disease began to spread around the world, millions of people worldwide were infected with COVID-19 disease, and major countries around the world have implemented foot prohibitions and work stoppage orders. Except for the medical supplies and life support products industries, most industries have been greatly impacted, and Delivery and Takeaway Food industries have also been greatly affected. In the past few years, the Delivery and Takeaway Food market experienced a growth of XXX, the global market size of Delivery and Takeaway Food reached XXX million $ in 2020, of what is about XXX million $ in 2015. From 2015 to 2019, the growth rate of global Delivery and Takeaway Food market size was in the range of xxx%. At the end of 2019, COVID-19 began to erupt in China, Due to the huge decrease of global economy; we forecast the growth rate of global economy will show a decrease of about 4%, due to this reason, Delivery and Takeaway Food market size in 2020 will be XXX with a growth rate of xxx%. This is xxx percentage points lower than in previous years. As of the date of the report, there have been more than 20 million confirmed cases of CVOID-19 worldwide, and the epidemic has not been effectively controlled. Therefore, we predict that the global epidemic will be basically controlled by the end of 2020 and the global Delivery and Takeaway Food market size will reach XXX million $ in 2025, with a CAGR of xxx% between 2020-2025.
    [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]
  • YELP INC. (Exact Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35444 YELP INC. (Exact name of Registrant as specified in its charter) Delaware 20-1854266 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 140 New Montgomery Street, 9 th Floor San Francisco, California 94105 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (415) 908-3801 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Common Stock, par value $0.000001 per share New York Stock Exchange LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES x NO ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES ¨ NO x Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Economic Perspectives
    The Journal of The Journal of Economic Perspectives Economic Perspectives The Journal of Spring 2015, Volume 29, Number 2 Economic Perspectives Symposia The Bailouts of 2007–2009 Austan D. Goolsbee and Alan B. Krueger, “A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler” W. Scott Frame, Andreas Fuster, Joseph Tracy, and James Vickery, “The Rescue of Fannie Mae and Freddie Mac” Charles W. Calomiris and Urooj Khan, “An Assessment of TARP Assistance to Financial Institutions” Robert McDonald and Anna Paulson, “AIG in Hindsight” Phillip Swagel, “Legal, Political, and Institutional Constraints on A journal of the the Financial Crisis Policy Response” American Economic Association Disability Insurance Jeffrey B. Liebman, “Understanding the Increase in Disability Insurance Benet 29, Number 2 Spring 2015 Volume Receipt in the United States” Pierre Koning and Maarten Lindeboom, “The Rise and Fall of Disability Insurance Enrollment in the Netherlands” James Banks, Richard Blundell, and Carl Emmerson, “Disability Benet Receipt and Reform: Reconciling Trends in the United Kingdom” Articles Darrell Dufe and Jeremy C. Stein, “Reforming LIBOR and Other Financial Market Benchmarks” Rainer Böhme, Nicolas Christin, Benjamin Edelman, and Tyler Moore, “Bitcoin: Economics, Technology, and Governance” Konstantin Kashin, Gary King, and Samir Soneji, “Systematic Bias and Nontransparency in US Social Security Administration Forecasts” Recommendations for Further Reading Spring 2015 The Journal of Economic Perspectives A journal of
    [Show full text]
  • Filed by Grubhub Inc. Pursuant to Rule 425 Under the Securities Act of 1933 and Deemed Filed Pursuant to Rule 14A-12 Under the S
    Filed by Grubhub Inc. pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Grubhub Inc. Commission File No.: 001-36389 GRUB Employee Email From: Matt Maloney, CEO Subject: A New Chapter for Grubhub Team, I know this note reaches you all at a time of great uncertainty. In addition to a pandemic that has disrupted our lives and impacted our friends and family, our country is struggling with widespread frustration, anger and sadness based on recent events that have reminded us, yet again, that we have a long way to go before our country achieves racial equality. As you know, Grubhub is committed to supporting you and doing our part to help you and our broader community, including our diners, restaurants and drivers through this incredibly challenging time. However, this email is to communicate something different – an important decision made by the board today and with my recommendation. After 20 years of building this industry from the ground up in the U.S., today we begin a new chapter for Grubhub. We have signed a definitive agreement with European industry leader Just Eat Takeaway.com in an all-stock merger to create the largest global online ordering/delivery company in the world (outside of China). Together, we will connect more than 360,000 restaurants to over 70 million active diners in 25 countries. You can read the press release here, and I encourage you to join our town hall meeting at 4:30 p.m.
    [Show full text]
  • Blue Apron Trial Offer
    Blue Apron Trial Offer Is Tybalt untempted or sombrous after bleeding Joseph reprove so more? Extremest and sessile Sidnee battle so tumidly that Desmund occults his moderatorships. Winifield is tetrahedrally promiseful after implausible Bernardo designated his cycloramas dishonestly. We have leftovers only people can only valid name field is blue apron trial offer first blue apron entirely We just feed the kids something else on our Blue Apron days. At blue apron trial, too much does blue apron free trials and a delicious! We offer award a win in this category to experience Sun Basket. The child most recent Christian Science articles with a spiritual perspective. Bessemer venture investors certainly received four offers a blue apron offer more trials? Is blue apron offers a freshly meal? Expenses are astronomically high in this text, so the company had been struggling to become profitable, for that my, Blue Apron will have reeled in the deals that batch can offer quite new customers. Disclosure: This post may contain affiliate links. So tough you worm a recipe is can ensure it again. In silicon valley medical condition, or three free! Is a quote from sustainable coffee is left with our editor made from the offer you simply click on top of. Wells encourages people with special offers should be referred to sustainability, and and it will be made me your delivery? Sb offers only of blue apron offer please set aside two people staying at a modal window every single week! You offered by and email you access to new offering actual address as your first served her birthday this site are most desirable in the meal options.
    [Show full text]
  • Delivering the Multisensory Experience of Dining-Out, for Those Dining-In, During the Covid Pandemic
    REVIEW published: 21 July 2021 doi: 10.3389/fpsyg.2021.683569 Delivering the Multisensory Experience of Dining-Out, for Those Dining-In, During the Covid Pandemic Charles Spence 1*, Jozef Youssef 2 and Carmel A. Levitan 3 1 Department of Experimental Psychology, Oxford University, Oxford, United Kingdom, 2 Chef/Patron, Kitchen Theory, London, United Kingdom, 3 Department of Cognitive Science, Occidental College, Los Angeles, CA, United States In many parts of the world, restaurants have been forced to close in unprecedented numbers during the various Covid-19 pandemic lockdowns that have paralyzed the hospitality industry globally. This highly-challenging operating environment has led to a rapid expansion in the number of high-end restaurants offering take-away food, or home-delivery meal kits, simply in order to survive. While the market for the home delivery of food was already expanding rapidly prior to the emergence of the Covid pandemic, the explosive recent growth seen in this sector has thrown up some intriguing issues and challenges. For instance, concerns have been raised over where many of the meals that are being delivered are being prepared, given the rise of so-called “dark kitchens.” Furthermore, figuring out which elements of the high-end, fine-dining experience, and of the increasingly-popular multisensory experiential dining, can be captured by those Edited by: Igor Pravst, diners who may be eating and drinking in the comfort of their own homes represents an Institute of Nutrition, Slovenia intriguing challenge for the emerging field of gastrophysics research; one that the chefs, Reviewed by: restaurateurs, restaurant groups, and even the food delivery companies concerned Alexandra Wolf, are only just beginning to get to grips with.
    [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]
  • Grubhub: Real-Time Case Study of the Post-Hype Sleeper Setup
    Grubhub: Real-Time Case Study of the Post-Hype Sleeper Setup Elliot Turner of RGA Investment Advisors presented his in-depth investment thesis on Grubhub (US: GRUB) at Wide-Moat Investing Summit 2019. Thesis Summary: Elliot calls one of his favorite setups “the post-hype sleeper” after the fantasy baseball term for a player who joined the league with considerable hype only to take longer to develop than the average fan expected. Markets are pretty similar in how early hype gets extrapolated too far, and when reality settles in, investors must grapple with whether the setback in valuation is temporary or permanent. Such stocks get stuck in-between a growth and value investor base and are thus perfect for scouting out GARP opportunities. For the second time in less than four years, Grubhub has set up accordingly as a result of a business model evolution from a pure two-sided marketplace connecting diners with restaurants to a three-sided marketplace adding in the delivery component. For the first time in over two years the stock is trading at a market cap to Gross Food Sales below one. With the nationwide rollout of turnkey delivery, investors are questioning the long-term margin profile of the business; however, Elliot believes margins are the wrong focal point. Delivery is inherently lower margin as a result of higher take rates. EBITDA/Gross Food Sales is more appropriate and has been pretty consistent around the 4.5% level, though with the nationwide rollout of turnkey it will be lower in 2019. For delivery marketplaces, network effects matter most on the local and/or regional level and Grubhub dominates the most delivery-friendly markets in the US.
    [Show full text]
  • How Has COVID-19 Impacted Customer Relationship: Dynamics at Restaurant Food Delivery Businesses?
    Marketing Science Institute Working Paper Series 2021 Report No. 21-129 How has COVID-19 Impacted Customer Relationship: Dynamics at Restaurant Food Delivery Businesses? Elliot Shin Oblander and Daniel Minh McCarthy “How has COVID-19 Impacted Customer Relationship: Dynamics at Restaurant Food Delivery Businesses? ” © 2021 Elliot Shin Oblander and Daniel Minh McCarthy MSI Working Papers are Distributed for the benefit of MSI corporate and academic members and the general public. Reports are not to be reproduced or published in any form or by any means, electronic or mechanical, without written permission. How has COVID-19 Impacted Customer Relationship Dynamics at Restaurant Food Delivery Businesses? Elliot Shin Oblander Columbia University, [email protected] Daniel Minh McCarthy Emory University, [email protected] In this paper, we quantify the impact of COVID-19 on customer purchase behaviors – customer acquisition, retention, ordering, and spending – within the restaurant food delivery category in the United States and assess the mechanisms through which these e↵ects have arisen using a unique collection of data sources. Our results suggest that pre-pandemic customer purchase trends were unfavorable, with falling acquisitions and weakening cross-cohort repeat purchase dynamics. COVID-19’s impact has been significant, creating $19.3 billion in incremental sales for the category in 2020, or 69% of the overall year-on-year increase in sales. This increase was primarily due to higher purchase frequency from already-active pre-COVID customers and an increase in average order size, not due to changes in customer acquisition and retention. Turning to mechanisms, we find that this growth is primarily attributable to substitution away from restaurant dine- in; while increased stay-at-home behavior has increased customer adoption and order size, it has actually dampened overall sales growth.
    [Show full text]