Sunday, December 17, 2017

Restaurants need to Double Down on Delivery

Driving top line sales and bottom line profits while consumer’s path to purchase is evolving faster than most legacy restaurant brands has created a quagmire that stagnates customer count growth according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In a recent Digital Commerce Survey from BRP found that same-day delivery has tripled in the past year with more growth to come. Here are some specifics:

1.       Currently, 51 percent of retailers indicate they offer same-day delivery, a sharp jump from 16 percent last year.
2.       Within the next two years, 65 percent plan to offer this service.
3.       Delivery through third-party services, such as Uber or Lyft, also rose from 20 percent last year to 32 percent this year, as retailers try different ways of offering customers the flexibility to shop, purchase and receive goods on their own terms, the survey found.

Jeffrey Neville, vice president at BRP  stated "With Amazon offering same-day delivery in some markets, the push is on for retailers to get items delivered to customers as soon as possible," said. "Autonomous delivery and distribution are the next step with self-driving vehicles soon a reality and a few food delivery start-ups already testing the concept."
The path to purchase is evolving fast driven by consumer behavior and mobile technology each are dramatically changing the traditional retail model, according to the BRP report. Within Foodservice  Amazon continues to disrupt brick-and-mortar retail through the acquisition of Whole Foods, restaurant franchise bankruptcies and company owned store closures are changing the landscape for food retailers.

What’s next according to the report, key customer imperatives for the future are:

1.        Combining behavioral, historical and customer profile data aids retailers in delivering tailored and relevant content to meet customers' individual needs. Thirty-eight percent of retailers indicate that improving personalization is a top digital customer experience priority.
2.       Customer expectations for a personalized, seamless experience require retailers to follow customers' journeys as they research and shop from anywhere. Nearly half (49 percent) of retailers will offer customers the ability to 'start anywhere, finish anywhere' within the next five years.
3.       Retailers' technology, processes and organization need to be unified and aligned across channels to offer a seamless and consistent customer experience. More than half (54 percent) of retailers indicate that creating a consistent brand experience across channels is a top priority.

Are you Looking A Customer Ahead Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Johnson, or