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The Foodservice Omnichannel
Tim York, President
Markon Cooperative
Salinas, California, USA
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The Foodservice
Market
• The category – all food prepared away from home, no matter where consumed
• Two primary channels
• Commercial – restaurants
• Non-commercial – hospitals, hotels, universities, ball parks
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State of Foodservice –
USA
• Sales are flat
• Over one million units – overbuilt
• Chains closing restaurants: Subway, Ruby Tuesday, Dickey’s Barbecue Pit, etc.
• Fast food discounting
• Severe labor shortage, rising costs
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What is Omnichannel Foodservice?
Foodservice – food prepared outside the home, whether retail salad bar, restaurant, hotel, ball park, school, hospital, Amsterdam Produce Show
Omnichannel – a multi-disciplinary approach to meeting consumers where and how they desire
• Web
• On-site
• App
• Call
• Text
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Omnichannel
A good OC strategy should:
• “Reduce friction” – we think in channels, consumers and customers do not
• Be seamless
• Add more convenience
• Add more excitement
• Provide multiple options for the customer
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Services
Delivery
• Sweetgreens - Outpost
• Order via website or app, one hour later pick up at drop-off point
• Traditional direct door-to-door
• Third-party providers –GrubHub, UberEats, PostMates
Mobile Ordering
• App
• Web
• Text
• Phone
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Domino’s
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Drive-Through• More than 50% of QSR is drive-through
• Dedicated lane?
• Challenge - when to prepare – when will you arrive?
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Curbside Pickup
• Sonic –
• Mobile ordering across the chain
• Order, pay, select store
• Direct to car delivery
• Future implementations
• Order screens to check in
• System to recognize customers
• Suggest add-ons
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The Challenges
with Omnichannel
in Foodservice
• Food quality
• Efficient operations at restaurant
• Delivery and packaging take twice as long, negative impact on diners
• Kitchen capabilities – counter/sit down service is self-regulating for capacity
• Service differentiation
• Branding
• Third-party brand stewardship
• Customer experience
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Customer ExperienceTilted Kilt
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Quality
“We encourage all our competitors to do as much delivery as they can, so they can deliver lukewarm food to their people.”
-Texas Roadhouse CEO
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Chipotle
• Digital sales growth 48% last quarter, 11.2% overall sales
• Upgrading mobile app, software, restaurant technology
• CEO – “Not new items…Digital…Removing friction”
• Expedite food to customers – less than 30 minutes
• Kitchens being built with two prep lines – front of store and digital
• Added convenience = higher than average sales
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Starbucks
• Tops list of omnichannel efforts
• Check and reload SB card through phone, website, in store
• Any changes updated across all channels
• Rewards are automatically accrued
• Payments – cards, rewards, phone
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Barnes and Noble Books
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PF Chang’s
• Channel Blurring
• In restaurant
• Delivery
• Pickup
• Frozen, prepared at home
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AT & T
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Denny’s
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Capital One Bank –Café and lounge
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A Look Ahead
• Elimination of third-party delivery and third-party apps
• Loyalty cards being replaced by apps – easier to use, familiar
• Partners become competitors
• Yum Brands investment in Grubhub
• Broader adoption of omnichannel strategies for all segments
• Data, data, data
• Virtual restaurants, no brick and mortar
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Thank You