Bootler brings comparison shopping to food delivery services

February 3, 2016
Cheryl V. Jackson
Blue Sky Innovation
Chicago Tribune
January 26, 2016
http://www.chicagotribune.com/bluesky/originals/ct-bootler-food-delivery-bsi-20160126-story.html

Food deliveryA Chicago startup plans to feed on the food-delivery boom with a search engine that makes comparing costs and delivery times easier.

Bootler (at gobootler.com) launches Tuesday in Chicago with a platform that allows users to compare menu items, prices, delivery times and fees, and order minimums across a variety of services. Users can add booze to their orders through the company’s partnership with on-demand alcohol delivery service Saucey.

Founder Michael DiBenedetto says customers who use Bootler don’t have to hop from one delivery site to the next to find what they want, then evaluate costs and other information.

The site currently includes Delivery.com, GrubHub, DoorDash, Postmates and EatStreet, with plans to add Uber, Amazon, Caviar and Eat24.

“It’s a very saturated market,” DiBenedetto said.”We think it will work because of how many companies are in the space. We’re driving more awareness and traffic for all the players in the space by arranging them all in one spot.”

Users can search by restaurant or food category then see the total from various delivery services, including menu price, taxes and delivery fees. They can then click through to their preferred service to complete the order.

Using Bootler is free to consumers. The company plans to get a cut of the delivery services’ take.

One-stop shopping for online food and alcohol ordering seems a natural with the growth of restaurant delivery services, said Darren Tristano, president at research and consultant firm Technomic.

“It was only a matter of time before somebody built a site that makes comparisons,” Tristano said. “It makes sense. We’ve seen it in other types of comparative places like with travel, with airfares and hotels and car rentals.”

It could be difficult to get consumers who already order from particular sites to steer first to an aggregator, though, Tristano said.

It “will be interesting to see if they can get consumers for a few dollars’ or a few minutes’ savings,” he said.

DiBenedetto said he started working on the website in June.

“I’ve wanted to order from one restaurant and it didn’t have what I wanted, so you end up having three or four tabs open until you find one that delivers what you want,” he said.

The site began operating beta in December, he said.


Restaurant food delivery heating up

January 21, 2016

Maria Kim, left, thanks UberEats driver Jim Butler for delivering her lunch in Chicago on Tuesday, Dec. 22, 2015. (Terrence Antonio James/Chicago Tribune/TNS)

By Samantha Bomkamp, Chicago Tribune
Published: January 10, 2016, 6:09 AM
http://www.columbian.com/news/2016/jan/10/home-delivery-pay-restaurant-meal-2016/

It’s snowing. You don’t own a car. You’re lazy and hungry.

At least a dozen companies are ready to deliver prepared foods to your front door, and the market for restaurant delivery is set to expand significantly in 2016, industry observers say, driven by greater availability and consumers’ growing willingness to pay big money for convenience. But with demand rising, analysts say prices will increase as companies test exactly how much you’ll fork over for a hot meal.

The table for 2016 is set: Multiple startups are already competing fiercely for a still-small section of the restaurant market, and consumers are growing more aware of the options available to them via delivery.

Delivery accounted for 1.7 billion U.S. restaurant transactions in the 12 months that ended in September, or just about 3 percent of the 61 billion U.S. restaurant “visits” or transactions in the year that ended in September, according to The NPD Group.

Burger and sandwich delivery is leading the way in terms of growth, but all categories are growing except for pizza, said Bonnie Riggs, restaurant industry analyst at NPD. Delivery has seen steady growth in the last four years while business across the restaurant industry overall has been flat or down.

“For those consumers that want something different, now they have other options,” she said. “If it travels well and it’s unique or different, consumers are going to go for it.”

But expanding delivery services come with a unique set of problems: More delivery orders can mean in-store customers wait longer, or feel they’re not the priority, said Michael Whiteman, president of Baum+Whiteman International Restaurant Consultants. And if the restaurant prioritizes in-store customers, food intended for delivery can take longer to arrive and may rapidly decline in quality.

To avoid that, some restaurants have physically separated their delivery businesses from their in-store operations.

Chipotle Mexican Grill added a second assembly line in the kitchen of nearly all their restaurants nationwide to handle delivery and catering orders. These second lines account for an average of $500 in sales per day, co-CEO Montgomery Moran said on an earnings conference call in October, adding that he sees a lot of room for that to grow.

Panera took a more extreme approach: It’s testing “delivery hubs” that handle only delivery and catering. Executives say the new locations will help them catch the growing delivery market without harming customer service in its cafes. Darren Tristano, president of research and consultant firm Technomic, said he expects to see more brands dividing their businesses in this way as delivery grows in popularity, particularly among young city dwellers without cars and office workers who don’t want to step out for lunch.

Delivery has come a long way from the days when pizza and Chinese food were the only games in town. Technology has changed the market significantly in recent years. The evolution of online, and later mobile, delivery started in the early 2000s when GrubHub and Seamless were founded. In recent years, companies like Postmates, DoorDash and Uber have partnered with a wide range of new restaurants, from McDonald’s and Dunkin’ Donuts to high-end restaurants.

These third-party delivery providers allow restaurants to offer delivery without a lot of added costs, Whiteman said. But there’s a lot at stake for restaurants in deciding how delivery is managed. If a third-party delivery person grabs the wrong order or gives bad customer service, it reflects badly on the restaurant itself.

Another issue: Who owns the customer? As technology companies like Amazon and Uber jump in the delivery game, concerns are surfacing about the information that is provided to those outside parties. If, for example, a customer orders pizza every Friday from the same restaurant through Amazon delivery, Amazon would be able to market another company’s pizza or Italian options before their weekly order. In that case, Amazon would keep the customer but the original restaurant would lose them, Whiteman said. Amazon offers restaurant delivery in some cities through its Prime Now service.

And for customers, delivery fees are expected to get even steeper, Whiteman said, because the market is still growing at a rapid pace. In some cases, Technomic’s Tristano forecasts the combination of delivery fees, service charges and upcharges for meals reaching as much as $20-$30. Prices vary widely but in some cases delivery can double the price of a meal.

“It will be an interesting experiment in speed and convenience,” Whiteman said.

Restaurants will also have to deal with possible backlash from a difference between in-store and delivery prices, Whiteman said. Postmates, for example, charges a $5 delivery fee but also a 9 percent service fee, plus “blitz pricing” during peak times.

Increased demand is also expected to lead to consolidation as third-party providers including Uber, Amazon, Postmates and DoorDash fight to get a bigger slice of the market.

“There’ll be an enormous amount of collapse,” Whiteman said. “And they’ll hope to be acquired before they fall apart.”

But Paolo Lorenzoni, Uber’s Chicago general manager, thinks that the market still has a lot of room to expand before “chaos” ensues.

“Our perspective is that a rising tide lifts all boats,” Lorenzoni said. “And that rising demand for delivery will ultimately help all our businesses grow.”


On the Horizon: Five Trends for U.K. Restaurants

January 24, 2014

The trends driving restaurant growth and innovation are driven by consumer demands for transparency, quality, flavour, and flexibility.

The U.K. foodservice scene continues evolving in unique and interesting ways. Looking forward to next year, Technomic’s analysts and consultants have identified five key trends that expected to play major roles at British restaurants.

Catering to the Millennial customer

As the influence and collective spending power of the U.K.’s Millennial generation grows, expect to see restaurant operators amplify efforts to target these consumers via foods and brands that appeal more directly to a Millennial demographic.

For instance, consumers aged 18–34 display the strongest interest in ethnic flavours. And a greater proportion of younger than older consumers indicate that it is important to them that cafés offer a variety of side options and seasonal menu items, according to Technomic’s U.K. Café Consumer Trend Report. Further, 31% of consumers aged 18–34 strongly agree that they would order limited-time offerings (LTOs) at cafés, compared to just 22% of all consumers polled.

Also watch for new mobile apps and digital tools that integrate seamlessly into Millennials’ lifestyle. Offering free WiFi in-store and letting customers place orders online are great starting points for connecting with these on-the-go, always-connected guests. Leading operators are also going beyond these steps.

Last spring, Wagamama partnered with Blippar, an image-recognition mobile application, to introduce augmented-reality place mats. Guests who downloaded the free Blippar app could hold their mobile device over (aka “blip”) the special place mats to access promotional information about the Wagamama Lounge, a pop-up concept featured at London-area summer music festivals.

Domino’s last September rolled out the free Pizza Hero app in the U.K., giving customers the chance to play professional pizza maker, rolling out pizza dough virtually, adding tomato sauce and then sprinkling on cheese and assorted toppings. A direct link takes users to the ordering page on Domino’s website.

And Apple’s Passbook lets iPhone users group their coupons, loyalty/rewards cards and more in one quasi mobile wallet—giving them quick access to their most-used or most-important passes. Last fall, casual-dining chain Harvester Salad & Grill became one of the first U.K. restaurant concepts to offer Passbook integration, and gave diners who used the app at Harvester £5 off when they spent £30.

The evolution of pubs

Classic British pubs will push even harder in 2014 to transform and grab market share from conventional restaurants by focusing more attention on creating upscale, premium food and drink (particularly speciality coffee and American craft beer); launching repositioned outlets in nontraditional sites; introducing web-enabled ordering systems that emphasise convenience and speed of service for guests; and promoting low-price-oriented menus and new loyalty programmes designed to spur customer traffic and strengthen the value perception.

Die-hard traditionalists might scoff at the idea of having a coffee and working on a mobile device at the pub, but a customer-centric evolution can help pubs maintain their relevance with a new generation of consumers.

Throughout 2013, we’ve seen examples of how pubs and pubcos are tackling the task of serving consumers who have higher expectations for food/drink, amenities and service at pubs. We expect the focus on this imperative to be that much keener in the year ahead.

For example, Orchid Group—whose approximately 250 pubs are now up for sale—realised that those establishments best positioned for success in Ireland and some U.S. cities after smoking bans took effect there were those that emphasised attractive food offerings. Orchid re-evaluated its menus and added pizza and Thai food, among other items, driving increases in food’s share of the sales mix. The company also took efforts to appeal to women.

Similarly, Marston’s PLC announced at the beginning of the year that it would install free Wi-Fi at about 550 pubs under its managed pub estate, Marston’s Inns & Taverns. The Prince George pub in Brighton, East Sussex, offers an all-vegetarian menu and a vegetarian-friendly wine list. And in August, Wetherspoon announced a new initiative pairing craft brewers from the U.S. with U.K. brewers, as part of an effort to seize upon U.K. consumers’ heightened interest in craft beer. The U.S. brewers produce their beers in the U.K. for sale at Wetherspoon pubs.

Honest chicken

Thanks in part to the recent crop of “better chicken” concepts opening in London, emerging chicken-focused concepts will flourish in 2014, a trend closely tied to growing consumer interest in sourcing, preparation and menu transparency. Pret a Manger, for instance, touts that its chicken is starch-free, phosphate-free and sourced from a higher-welfare supplier in Suffolk. Expect to see chicken increasingly described as “free-range,” “locally sourced” and “hand-battered.” We’ll also see more American influences in the form of barbecue chicken and buttermilk fried chicken, as well as simpler cooking techniques that let the quality of the chicken speak for itself.

KFC in the U.K. touts that its chicken on the bone comes from only British and Irish chickens, and that chicken goes from the refrigerator to a breading of flour and the chain’s 11 signature herbs and spices and then to the fryer within two minutes. Little Chef touts that its Crispy Chicken Platter features 100% chicken breast fillet.

Other takes on fried chicken include Scream’s Southern-Fried-Style Chicken fillets served with barbecue seasoned chips, Jubo’s Chicken Roll with Korean fried chicken fillet, kimchi slaw and gojuchang mayo, and Clutch’s Love Me Tenders, fried chicken tenders in a peanut and chilli crust.

These dishes also illustrate U.K. consumers’ growing appetite for spicy heat, also evidenced incurries that pack a little more punch than chicken tikka masala; the rising popularity of Mexican cuisine; and the cult-like following of London-based Nando’s, the fast-casual concept specialising in flame-grilled piri-piri chicken. Neutral-flavoured, food-cost-friendly chicken offers an ideal protein platform for showcasing the vibrant flavours and colours of chillis from around the globe.

Migration of street food

Fueled by younger consumers’ demand for authentic and unique offerings, chefs are looking to global street foods for menu inspiration for their brick-and-mortar restaurants. Trendy street-inspired dishes starring on menus include Venezuelan arepas, Chinese jian bing and bao, Taiwanese hirata buns and Italian arancini.

KFC U.K. got in the game last year, introducing a limited-time Streetwise Sweet Chili Wrap featuring a chicken mini-fillet, sweet chili sauce, lettuce and cheese wrapped in a tortilla. And London-based fast-casual chain Leon introduced a Thai Green Chicken Curry box, featuring slow-cooked shredded chicken thigh, roasted aubergine and bamboo shoots served on brown rice.

Looking ahead, ethnic beverages like Mexican aguas frescas and horchata will carve out a wider niche on the menu. Also watch for dynamic flavour mashups from different cuisines and the continued growth of food trucks serving ethnic and fusion street foods.

Telling the sourcing story

Transparency is now top-of-mind for operators who want to keep customers confident in their brand. Use of eco-friendly food packaging, such as recycled or reusable cups or stemware, is increasing along with a growing commitment to ethical food sourcing. Next year will bring a surge in brand campaigns communicating quality and traceability. Watch for package logos denoting animal welfare standards, in-restaurant signs documenting supplier sourcing, and marketing initiatives focusing on the use of British and Irish products.

A good example is the Olive Branch Pub in Clipsham. Its website highlights a story about head chef Sean Hope’s recent lobster fishing trip, to source the freshest lobster for dishes such as grilled lobster Thermidor and a fresh lobster claw and tail meat with lobster tortellini. The site also provides a list of the pub’s suppliers and producers—not just the names of the farms but also the actual farmers with whom the Olive Branch works.

For its part, McDonald’s U.K. invited three young British farmers to get a behind-the-scenes look at operations inside McDonald’s stores as the part of its Progressive Young Farmer Training Programme. The mentoring-focused programme, according to McDonald’s, “aims to help young people looking to work within agriculture kick-start careers in the industry by providing them with the blend of farming and business acumen needed to succeed in today’s modern farming sector.”

The programme has the added benefit of providing a fresh, interesting supply-chain story that McDonald’s—which also announced in April that it was switching to serving 100% Freedom Food pork raised on farms that meet strict animal-welfare standards—can share with consumers.

Similarly, fast-casual burrito specialist Chipotle, whose Food With Integrity philosophy/sourcing model has won acclaim in the U.S., notes on its U.K. website that it uses Freedom Food chicken, Farm Assured beef and free-range pork.

Key Takeaway

The trends driving restaurant growth and innovation are all driven by consumer demands for transparency, high-quality and -flavour, and flexibility. Restaurant operators should examine and pay attention to these trends but follow the lead of their own customers and those they are trying to attract.


Restaurant And Hospitality IT News For VARs — January 6, 2014

January 14, 2014

pictureMobile apps with integrated loyalty and rewards is boosting digital gift card spending — and restaurants are planning to invest in smartphone app and other mobile technology. Also in the news, the RPI reached a five-month high in November 2013, at 101.2.

Help Clients Boost Engagement With Stored Value Cards

In his article for QSR Web, Jon Squire says that the launch of mobile apps with integrated loyalty and rewards has encouraged more spending on digital/mobile gift cards. For clients looking to invest in mobile platforms this year, it would be beneficial to discuss how gift cards fit in. Companies like Starbucks have seen success from stored value cards, which can be mGifted, can earn your client new customers, and can encourage repeat app usage. An app that integrates loyalty and rewards and promotes stored value cards could be an important strategy for your clients for 2014.

6 Priorities For Mobile Commerce

According to the National Restaurant Association, more than half of full- and limited-service restaurants planned to invest in smartphone apps and other mobile technology in 2013. However, there are six priorities that must be accomplished to ensure a successful future of mobile commerce in the U.S. These six priorities include: standards development, transparency, cost efficiency, legacy rule limitations, payment security improvements, and mobile commerce advancement.

RPI Reaches 5-Month High

The National Restaurant Association announced that the Restaurant Performance Index (RPI) hit a five-month high in November. The RPI rose 0.3 percent from October, reaching 101.2 in November. This is the highest its been since June. Operators attribute this increase to improving same-store sales and increasing customer traffic. A majority of restaurant operators (54 percent) also reported making a capital expenditure within the last three months.

Burger Joints Investing In Online Ordering

According to QSR Magazine, burger joints have been focusing on ways to incorporate online ordering into business. Even chains as large as McDonald’s have tested ordering capabilities via app to help ensure quicker customer service. These new services however, are daunting to businesses because of the staff training it involves and the overall effort to develop the service. Darren Tristano from Technomic says businesses looking into online ordering should invest in an app that is easily downloadable, free, and can securely store payment information. Making the app about more than just ordering will only help to boost convenience for customers.

Restaurant And Hospitality IT Talking Points

A Japanese company has begun to use QR codes to inform customers about where certain apples are from and how they’re produced, Japan Daily Press reports. These QR codes can provide consumers with information on how and where the apples were grown, along with a message from the farmer.