Technology will continue to Drive Restaurant and Grocery Service Deli Growth in 2022

At the intersection of grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food we are finding the convergence of consumers, restaurants, grocery service deli’s, convenience stores, and technology according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

It’s at that intersection that we find an evolving price, value, service equilibrium according to our own Grocerant Guru®. The old formula for the price, value, service success was: Price + Quality + Service + Portability = Value. 

That formula has evolved with Gen Z and Millennials today.  Foodservice Solutions® Grocerant Guru® has once again retooled, reevaluated, calculated then evolved the formula and here is the new formula:  Price + Food Quality + Social + Portability + Technology = Value.

To that end, Olo recently announced a partnership with Lyft through Olo’s Dispatch solution to deliver digital orders for Olo’s network of restaurant brands. We know that in 2022 both C-stores and grocery service Deli’s will be ready to delivery grocerant niche Ready-2-Eat and Heat-N-Eat as well.

In case you did not know, Olo's Dispatch product allows restaurant brands to accommodate delivery for orders generated through their own website and apps by providing a network of third- party delivery service providers, such as Lyft.

Empowering localization, the Olo solution seamlessly selects service providers, including in-house couriers, based on optimal price, timing, availability, and other criteria. Olo’s automated matching technology enables restaurants to get food out the door and into the hands of the guest faster and in the most cost-efficient way. Dispatch enables brands to rapidly deploy delivery at a national scale with a service fully integrated into their point-of-sale (POS) platform and kitchen production systems, all the while strengthening direct guest relationships through their own channels.

“Shalin Sheth, VP and GM of Dispatch for Olo, stated, Direct digital orders continue to make gains in the restaurant industry as brands recognize the need to protect direct relationships with guests, and effective management of these orders is a critical component to success,” … “With Dispatch, we help our customers enable delivery on their owned channels, using trusted partners like Lyft for local delivery. The addition of Lyft to the Dispatch network not only expands delivery coverage for our brands, but drives competitive pricing at the benefit of guests and brands alike.”

Justin Paris, Head of Lyft Delivery, stated, "We’re excited to enable local delivery for merchants with Olo Dispatch,”…. “As a transportation-focused company, we aren't interested in building consumer-facing marketplaces for groceries or food, but we can add real value in delivery both for drivers and partners via Dispatch's frictionless process and the scaled national network of drivers on Lyft's platform.”

Adam Griffith, VP of Information Technology at Original ChopShop, stated, “We're excited to see Lyft partner with Olo to expand the impact of Original ChopShop's and Bellagreen's delivery programs running through Olo Dispatch,” ... “Each delivery order on our own sites is one more direct guest relationship we can keep, and the availability of drivers and competitive pricing from Lyft we experienced during its Dispatch pilot ensured our guests got their food quickly and at a competitive delivery price. We look forward to continuing this partnership with Olo and Lyft to grow both the Original ChopShop and Bellagreen delivery programs.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success. 

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 Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant