Trending Now. E f f e c t. The E-commerce. Strategic Insights & Category Management
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1 Trending Now The E-commerce APRIL 2016 Strategic Insights & Category Management
2 In this issue 1 Meal Kits 2 Delivery Apps Grouping Tabletop Devices 2
3 Meal Kits 29% of consumers would use a meal kit service to save time cooking Also called fresh food subscription services, meal kits have exploded onto the foodservice scene. Among the many players in this emerging segment are brands like Blue Apron, HelloFresh, Plated and PeachDish. Meal kits allow users to prepare chef-inspired, ready-to-cook meals at home, with an average per-person price of $10 to $12 per meal. Consumer drivers fueling the meal kit trend include time savings, meal planning, local sourcing, foodie recipes and healthy meal options. More deals and value drivers from casual-dining chains dinner Increased sourcing and promotion of local ingredients at the chain level Emphasis on preparations that are hard to duplicate in the home 3
4 Delivery 28% of consumers are ordering delivery more often now than two years ago With hectic schedules and work-life-balance aspirations, consumers want restaurants to make eating meals more convenient. This is a major factor driving growth of restaurant delivery especially the numerous third-party services partnering with restaurant chains. This is occurring at chains across segments from QSRs and fast casuals to casual-dining giants like Calinia Pizza Kitchen. Drivers this trend are time savings, meal planning and round-the-clock dining. App enhancements that enable a seamless ordering, payment and delivery experience Restaurant meal subscription services More grab-and-go at restaurants to help guests get in and out fast 4
5 Apps 65% of consumers who use a mobile app payment use it most of the time or every time they pay Apps now serve as the mobile storefront many chains, and they give consumers the power to engage with the brand on their terms and from the palm of their hand. Today s restaurant apps allow users to interact in many ways by browsing the menu, viewing nutrition info, playing games, finding locations, as a loyalty program hub and placing and paying orders. For Millennials and Gen Zers, a sleek and functional app is no longer just a demand from restaurants, it s a must. Apps with menus adaptive to diet restrictions Greater transparency of ingredient sourcing Tools that allow users to select healthier choices 5
6 Grouping Group ordering has been somewhat below the radar when it comes to e-commerce tools restaurants. But many chains have launched this service and it brings a great convenience to consumers allowing them to combine multiple orders from multiple people into one order that can be picked up together or delivered to one location. It s a timesaver, eliminates the hassle of splitting up a check and lets each user easily customize their own dishes the way they like. 64% of consumers cite group ordering as important to the ordering process Group loyalty programs, especially from coffee chains Group ordering tools spread to more platms like social media and gaming consoles targeting young consumers in their social circles 6
7 Tabletop Devices 50% of Millennials say tabletop ordering is important when choosing a restaurant to visit Tabletop devices such as Ziosks and tablets have become popular additions to the tables of many casual-dining chains. These devices add entertainment, convenience and functionality to consumers dining experience with games, the ability to place add-on orders like drinks and desserts, and the ability to pay at the table. Some of the largest drivers of this trend from the consumer standpoint are paying from the table, eliminating wait times and enabling greater privacy. Equipment enhancements that facilitate greater customization abilities the guest Loyalty offers frequent device users More-targeted upselling 7
8 Takeaways 1 E-commerce and Apps are here to stay and will change the way consumers interface with food. An estimated 40% of all Domino s pizzas are order throug their App and 10% of Starbucks profitability is attributed to their new online ordering E-commerce can allow a more intimate level of knowledge of consumers to aid in menu development and deal development. Reading the data to understand order patterns. Meal Kit delivery provides consumers the opportunity to feel skilled in the kitchen and prepare their own gourmet meals. They will continue to grow. non-food technology guru s to continue driving the game! 8
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