Monday, January 12, 2015

Burger King, Pizza Hut, Domino’s, Look Out for McDonalds and Starbucks

Burger King has been driving top line sales while expanding contemporized customer relevance with food delivery in the United States for three years in select markets largely without much competition. This year things are about to change. 

Starbucks announced last October that it would begin delivery of both food and beverages in select markets in the United States.  The world’s most successful fast food restaurant chain McDonald’s is not to be counted out.  Regular readers of this blog know we have documented McDonald’s successful delivery program in countries around the world. McDonald’s is particularly good at build, measure, learn and repeat and that template has become a pillar of success at the golden arches.   

The McDonald's delivery service, dubbed 'McDelivery', is one the fast food giant's latest strategies to remain customer relevant, on-trend, while expanding market share once again.  While “fast casual” restaurants have been credited with garnering market share from McDonald’s its the C-stores that have garner both  customers and market share in the United States. 

This last year McDonalds began testing “McDelivery”  delivery in Australia, building on its successful food delivery program in Asia.  During the past year McDonald’s has expanded from its rollout in Sidney from one store delivering to four suburbs to seven stores delivering to 53 suburbs. 

In fact the Australian McDelivery test is going so well that Australian fast food giant Red Rooster is going into the meal delivery market. Ready-2-Eat and Heat-N-Eat fresh prepared food is driving rapid change within every sector of retail foodservice today.  

Starbucks, Burger King, and McDonalds all will be expanding points of distribution with delivery in the United States over the next three years.  Foodservice Solutions® Grocerant Guru™ predicts that reinvented mobile app based delivery will become the NEXT BIG THING  in the restaurant sector creating unprecedented competition for Pizza chains and industry disequilibrium. 

Success does leave clues and the race for mobile app based deliver supremacy will create  aggregate cost per meal delivery deflation. Make no mistake McDonald’s and Starbucks are serious about delivery, technology, and garnering market share.  The battle for share of stomach continues to be driven in large part by Foodservice Solutions® 65 Inch HDTV Syndrome.  

Consumers are increasingly time starved, cooking skill-set challenged, and QSR food delivery will provide a cost effective alternative for office settings, families looking for new differentiated food delivery options. Success does leave clues industry leaders the ilk of Starbucks and McDonalds understand expanding points of distribution is key to winning a larger share of stomach. 

Outside eyes can deliver top line insights and bottom line profits.  Invite Foodservice Solutions® to provide a competitive scorecard, brand, product, or pricing positioning assistance. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more visit: or call 253-759-7869

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