Discounts and Partys

Not Our First Party - delivery and digital restaurant expert, Peter Backman , does a great job outlining the push toward first party delivery and the role it plays in the off-premise landscape. - Link

Why it Matters: I thought this was a terrific quote from the article,?"The move towards first-party delivery is not just about logistics or technology; it’s about aligning modern delivery practices with the timeless essence of hospitality." This doesn't mean 3rd party?delivery doesn't play a huge role in off-prem but we should recognize restaurants want the opportunity to impress their guest and generate long term value.

QSR Value Problem - Perception is everything, this article quotes McD's US president. His quote goes beyond the value conversation into addressing Big Mac prices and social media "inaccuracies" - - Link

Why it Matters: It's interesting he addressed the Big Mac price discussion head-on, because even if he's right and the inflation of that item has been overstated by people online... it doesn't matter - value is a perception. He can defend the pricing with numbers but ultimately the public feels differently and rolling out more value deals confirms this view.

Discounting "Necessary Evil" - many brands are leaning into the Value Wars, which started on first party apps last year and is now reaching national campaign level. Traffic is slowing and the lever to generate more traffic is lower prices. - Link

Why it Matters: There are more strategic ways to discount, especially on digital and off-prem channels instead of 20% off for a week or $5 for everyone and cannibalizing your heavy business - exacting dynamic discounts (based on store level data) during slow periods would be like using a scalpel instead of chainsaw. It's more effective and the technology exists - but maybe I'm biased!

GrubHub x Amazon Prime - Amazon is partying it up with GrubHub for $0 delivery fees for Prime members, a one time deal that they're extending to everyone. - Link

Why it Matters: GrubHub has been trailing DoorDash and UberEats with their US user base, could this push add new downloads or reactivate lapsed users??

Cloud Kitchen Outlook - this article?is essentially a PR release for a new study on Cloud Kitchens, but it's worth checking out even if just for the sub-headlines. Estimated global value of cloud kitchens are currently $60B and $115B by 2029. - Link

Why it Matters: Cloud kitchens have flown under the radar recently but the surprising thing might be the brands who are leading the way... Starbucks, YUM! and DoorDash. Brands who have the resources and know how are finding ways to generate money in the space.

Upcoming Conferences

Digital Transformation in Fast Casual and QSR: June 11-12 in Lombard, IL (Link)

QSR Evolution Conference: September 4 - 5 in Atlanta, GA (Link)

FSTEC: September 15 - 18 in Grapevine, TX (Link)

If there are any other upcoming conferences we missed, send us a note!

Feedback

Do you have questions, theories, rants, raves, complaints, or slam poetry to share? I love to chat all things delivery and digital restaurants so if you need to vent or want to learn more feel free to reach out [email protected].

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