7 reasons Food Hall concept Wonder May outlast many legacy Restaurant Chains

 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that the delivery-centric food hall startup Wonder, founded by entrepreneur Marc Lore that has now raised $1.5 billion to date and plans to expand to 90 locations by the end of next year just might outlast many current legacy restaurant chains. 

Why, Wonder is built to evolve with consumers, the brand is not static it is built to be dynamic and he is not the only one to think so.  Consider this Wonder has recently raised $700 million to help scale its ambitious business model that is no guarantee but it is a step in the right direction.  

 

Here are Johnson’s 7 reasons why Wonder, the delivery-centric food hall concept, might have an advantage over some legacy restaurant chains:

1.       Variety and Convenience: Wonder offers a wider variety of cuisines under one roof, catering to diverse customer preferences. This allows people to choose from different restaurants without leaving the location, perfect for groups with indecisive eaters.

2.       Delivery Optimization: The layout and operations of Wonder can be optimized for delivery services. This could include designated pick-up areas for drivers and packaging designed for travel.

3.       Lower Overhead Costs: Wonder might share operational costs like rent, utilities, and some staff across multiple restaurants. This could potentially lead to lower overhead compared to a single-concept restaurant chain.

4.       Adaptability to Trends: Wonder can introduce new restaurant concepts or cuisines quickly based on customer demand. Legacy chains might take longer to adapt menus or open new concept restaurants.

5.       Technology Integration: Wonder can leverage technology for ordering, payment, and delivery, potentially leading to a smoother customer experience.

6.       Focus on Takeout & Delivery: Wonder caters directly to the growing trend of online food ordering and delivery, which many legacy chains might be struggling to adapt to.

7.       Community and Experience: Wonder, if designed well, can create a vibrant atmosphere where people gather and socialize, even if they're primarily ordering for takeout or delivery. This can be a draw compared to a standard chain restaurant solely focused on the meal itself.

All that said,

·         Wonder's success depends on factors like execution, location, and maintaining a critical mass of restaurants.

·         Legacy chains have brand recognition and established customer loyalty that Wonder will need to overcome.

While Wonder has potential advantages, the restaurant industry is competitive. Only time will tell if Wonder can truly outlast many legacy chains.

Lore recently noted that, Wonder had met three goals he set out for the company: delivering all 30 of its menus from one location in an average of under 30 minutes; reaching a Net Promoter Score of 60 or more; and becoming profitable at the unit level. 

Lore is not a rookie entrepreneur, he has made a name for himself scaling startups like Diapers.com and Jet.com, which he sold to Amazon and Walmart, respectively. He then became CEO of Walmart’s ecommerce business before leaving to lead Wonder, which he has called his biggest idea yet.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.