A 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.
It’s never been easier for consumers to get things delivered. So why not coffee?
Imagine a piping hot coffee delivered to your office or home at the proverbial “click of a button.” For consumers, it’s perfect. For the coffee companies attempting to provide these services, it’s a bit more complicated. But two of the major chains, Starbucks and Dunkin’ Donuts, are ready to give it a try.
2015 was a big year for Starbucks, which added several services designed to be quick and convenient. In September, the company rolled out nationwide availability of Mobile Order & Pay through its apps, which allows customers to order ahead on the app and pick up in-store without waiting. In October, Starbucks announced a pilot project: It started bringing coffee and other items to employees of the Empire State Building through an in-house service, Starbucks Green Apron Delivery, which promised items “delivered by Starbucks baristas right to your office.” And in December, Starbucks officially debuted its previously announced partnership with start-up Postmates, allowing customers in Seattle to order delivery using the Starbucks app.
It’s not just Starbucks getting into the delivery game. In November, Dunkin’ Donuts launched two programs designed to “make it even easier and more convenient for people to run on Dunkin’ from morning to night,” announced a company press release. On-the-go ordering — which works with the company’s app in a similar style to Starbucks Mobile Order & Pay — first launched in Portland, Maine. Dunkin’ Delivery, meanwhile, first launched in Dallas as a partnership with the on-demand delivery start-up DoorDash, and both services have expanded into other cities.
Although fast-food and coffee chains have great convenience, the expectation by consumers to get food delivered is increasing.
But why coffee delivery? “Both ordering methods are simply new ways to… meet customers where they are in their day,” says Starbucks spokesperson Maggie Jantzen. Apparently, the most-asked-for service on the My Starbucks Idea blog was, “When will Starbucks just bring me coffee?”
According to Darren Tristano, the president of food industry research firm Technomic, “with the rise of on-demand delivery services like Postmates and others, many operators have researched the opportunity to outsource or build delivery services,” and that includes brands already known for convenience. “Although fast-food and coffee chains have great convenience — including in-store and drive-through options — the expectation by consumers to get restaurant food delivered is increasing,” he says, “and broadening across new segments.”
But anyone who has waited longer than expected for a food delivery, received a dish that had cooled in transit, or not received what was ordered, understands that delivery logistics are complicated. Unlike Amazon shipments, there’s only a brief window of time that most food items can be delivered before getting cold or spoiling, and some might say that the window is even shorter for coffee.
“The flavor and aroma characteristics of hot, brewed coffee drinks change quite rapidly as the temperature decreases,” says Nick Brown, editor of Roast Magazine‘s Daily Coffee News. “And while everyone drinks their beverage at a different pace, the most loyal of customers may have some sensory expectations tied to their favorite drinks. Time and temperature seem to be the two biggest obstacles here in repeating the experiences consumers have come to expect within the brick-and-mortar retail locations.”
“Given the number of locations that each brand has, it should be relatively easy to develop delivery options,” Tristano says of the logistics. “Challenges facing both operators will include peak time service, logistics in-house, and managing the delivery in a way that doesn’t impact the on-premise operation or the brand quality as products leave the store.”
Starbucks’s rollout of Green Apron delivery seems to take these concerns into consideration. The company used existing infrastructure for its Empire State Building delivery: The building already had a Starbucks café, and the company uses a separate kitchen for the Green Apron orders. There are more than 12,000 employees in the building, but they are all just an elevator ride away. Customers place orders on a fairly simple website. Orders arrive in approximately 30 minutes, according to the company. But Ashley Fleishman, a lawyer who works in the Empire State Building, reported coffee delivered in 10 minutes. And yes, “the coffee is still hot,” she says.
Starbucks’s “Green Apron Delivery” service is designed for deskside deliveries within large high-rise buildings.
Green Apron Delivery partners are discouraged from accepting cash tips, says a company rep, but the company is working on adding digital tip options to the website. And although Starbucks did not share plans for expanding Green Apron, Jantzen describes the service as one “for customers within a designated high-rise building.”
The company has, at least, one new customer. Fleishman used to get her caffeine fix from her office’s Keurig machine. “I am not a religious coffee drinker,” she says. “So with Starbucks, I probably drink more than I previously did before delivery was offered.”
While the Green Apron delivery seems to focus on office delivery, “customers aren’t just in office buildings,” according to a Starbucks press release announcing the Postmates partnership in Seattle. “They’re at soccer games with their kids, at home with family, or gathering at the park with friends.” To get those skinny lattes to soccer games, Starbucks teamed with Postmates, a delivery company that has a love-hate relationship with the restaurant industry. (Postmates often offers delivery from restaurants without their consent.) Despite the complicated relationship with restaurants, Starbucks considers Postmates “an industry leader in the on-demand delivery space,” writes Jantzen. “They have the technology and expertise to scale this program with Starbucks.”
It’s safe to say Postmates is committed to the relationship: According to the company, they’ve designed a new carrier “so that we could ensure that the coffee would arrive the way it left the store.” Customers order through the Starbucks app, which has been modified to use Postmates’ ordering and delivery technology, the first and only food company app to do so. Users in Seattle and elsewhere can still order through Postmates directly, but having delivery built into Starbucks app allows customers to customize orders, the company said in a press release. For Postmates deliveries, Starbucks charges a $5.99 delivery fee.
Jantzen also says that Starbucks has “no additional plans to share in regards to other food delivery companies.” But it would not be uncommon for large chains to test our various food delivery options. For example, 7-Eleven is working with both Postmates and DoorDash in different cities. In terms of logistics, Slurpees have a lot in common with coffee — a delivery that’s just a few minutes late can be problematic.
Dunkin’ Delivery customers can order only through the DoorDash app — DoorDash has experience working with chains including Taco Bell and Kentucky Fried Chicken. The partnership probably made getting the program of the ground easier for Dunkin’ Donuts, but will most likely limit the information they can gather from their customers. For the partnership, DoorDash began deliveries at 7 a.m. or 8 a.m., a few hours earlier than the typical 10 a.m. start time, in order to serve breakfast. Breakfast and food in general is a growing category for many fast food companies, according to Brown.
“This strikes me as a relatively low-risk channel to explore, especially if the technology bears out.”
“While breakfast has been a strong suit, we’ve seen roughly one-third of coffee orders come after lunch,” says Prahar Shah, the head of business development at DoorDash. Office deliveries are popular. “We see three to four folks on a team doing the ‘coffee run,’ but doing it with DoorDash.” Dunkin’ Donuts’ Box ‘O Joe, which holds 10 cups of coffee in a box, are popular with the late-afternoon office crowd, says Shah.
This partnership has expanded from Dallas to Washington DC, Chicago, Atlanta, and Los Angeles/Orange County. And Dunkin’ Donuts is looking to expand delivery, with or without DoorDash. “As we continue to test Dunkin’ Delivery, we will look to explore options for other partnerships and integrations with the DD Mobile App,” writes Sherrill Kaplan, who works on digital marketing and innovation at Dunkin’ Brands.
“Both companies have made big strides in their app development and mobile ordering platforms, and it makes perfect sense that they would try to leverage that loyalty through a new channel,” such as delivery, writes Brown, the Roast editor. “This strikes me as a relatively low-risk channel to explore, especially if the technology bears out.”
At this point a couple years ago, if you asked a restaurant executive how she might user Uber to build sales, she might have guessed as a prefix for the name of her brand’s Oktoberfest-theme burger. But now, Uber and Postmates are just two of the sharing-economy apps rapidly transforming foodservice and shaking up consumers’ expectations everywhere.
Going into 2016, there are dozens of similar forces shifting the ground beneath restaurants, and most of them are far beyond what brands have the power to control. While they are hard to predict, even for a data-rich firm like Technomic, they are easy to identify and understand, because they all spring from evolving consumer demand. Major moves from the biggest restaurant companies—McDonald’s moving its food supply toward more cage-free eggs, for example—aren’t dictated solely by the bottom line. They’re dictated by what consumers need from foodservice brands.
Technomic just released its 10 major food trends for 2016 with this dynamic in mind. Because consumers are the impetus behind all the upheaval, take a look at each trend and see how many of them you’re driving with your own dining out preferences.
The Sriracha Effect: This hot sauce from Thailand will continue to grow in popularity, but the “effect” Technomic predicts is that chefs and chain restaurant executives will search for the next hot ethnic flavor to find lightning in a bottle again. Early indications are that this will drive more use of and consumer interest in ghost pepper from India, sambal from Southeast Asia, gochujang from Korea, and harissa, sumac and dukka from North Africa.
The Delivery Revolution: Popular apps that simplify online and mobile ordering making “dining in” even easier and, in some cases, “dining out” irrelevant. Delivery services like GrubHub are starting to proliferate far beyond urban centers, bringing the convenience of a restaurant meal home, where plenty of people are likely camping out in front of the TV to binge-watch a season or two on Netflix. Other services are muscling in, including the aforementioned Uber and Amazon, which is expanding its Prime Fresh memberships for grocery delivery.
One particular threat to restaurants could be app-only services like Munchery, which delivers restaurant-quality food from a commissary, cutting out brick-and-mortar restaurants completely.
Negative on GMOs: In some cases, consumers have made up their minds before scientists have reached consensus, but many restaurant customers are declaring genetically modified organisms to be nonstarters. Many diners will agree with calls for labels of GMOs on menus and food packaging; some will go further and gravitate toward restaurants that advertise a GMO-free menu. That will be a major issue for the nation’s food supply, since many crops—particularly soy fed to livestock and other animal feeds—have been modified to boost their yields and productivity.
Modernizing the Supply Chain: Speaking of the supply chain, it already has enough challenges to deal with, including climate destabilization, rising costs for transportation and shipping, and pests. These will cause frequent repeats of shortages similar to those witnessed in 2015, like the unseasonable freeze that decimated Florida’s orange crop or the egg shortage that resulted from avian flu. Those hurdles will proliferate while more and more consumers demand food that is “fresh,” “local,” or just free of additives and artificial ingredients. Every brand, from restaurants to grocery stores and convenience stores, will make big investments in supply chain management in 2016.
Year of the Worker: Restaurants will also contend with rising labor costs, because of new mandates to cover full-time staff with health insurance and because the minimum wage could increase sharply depending on the state or city where they’re located. Pressure groups will ratchet up their call for a $15-per-hour wage, and they could possibly succeed in more cities like they have in New York and Seattle. Don’t expect any changes to the federal wage floor of $7.25 per hour, because no cooperation between a Democratic White House and a Republican Congress is possible, especially in an election year.
How will restaurants respond? Most will raise their wages to either comply with a new law or to compete for the best staff—but that means menu prices are going up as well, everywhere from fast food to fine dining. Also, more brands will experiment with technology and automation in the kitchens and the dining rooms to do more with fewer employees.
Fast Food Refresh: Consumers gravitate to “better” quick-service restaurants, which has transformed the industry. That has created a subset of “QSR-Plus” concepts with fresher menus and more contemporary designs, which exploits a price threshold between fast food and fast casual. Culver’s, Chick-fil-A and In-N-Out Burger are examples of this. “Build-your-own” menus are springing up across the industry, and many quick-service brands are adding amenities like alcohol.
QSR-Plus also helps other restaurants clarify their positioning by giving up their attempt to go upscale in a piecemeal approach, and those chains instead are returning to their roots with simplified menus and lower prices.
Elevating Peasant Fare: The popularity of street foods and consumers’ demand for portability and affordability have put things like meatballs, sausages and even breads back in the spotlight. But this time, those meatballs might have a nouveau twist, such as a blend of fancier meats like duck or lamb. Multiethnic dumplings will also continue to grow in popularity, from Eastern European pierogi to Asian bao.
Trash to Treasure: Rising prices for proteins will raise the profile of underused cuts of meat, organ meats or “trash fish.” The “use it all” mindset has also moved beyond the center of the plate. Some restaurants will use carrot pulp from the juicer to make a veggie burger patty, and perhaps other chains will follow the lead of Sweetgreen, which last year partnered with celebrity chef Dan Barber to make the wastED Salad, an entrée that saves vegetable scraps like broccoli stalks and cabbage cores and combines them with upscale ingredients like shaved Parmesan and pesto vinaigrette.
Let them eat kale stems!
Burned: Smoke and fire are showing up everywhere on the menu—smoky is the new spicy. Look for more charred- or roasted-vegetable sides, desserts with charred fruits or burnt-sugar toppings, or cocktails featuring smoked salt, smoked ice or smoky syrups.
Bubbly: Effervescence makes light work of the trendiest beverages. Technomic expects rapid sales growth of Champagnes and Proseccos, Campari-and-soda aperitifs, and adults-only “hard” soft drinks like ginger ales and root beers. In the nonalcoholic space, sales will also increase for fruit-based artisanal soda and sparkling teas.