A Visual Guide to Industry Consolidation
The sheer volume of M&A activity in the Food On Demand space is somewhat staggering. And it’s not just Grubhub buying things up. A Look at the industry from CB Insights shows the incredible volume of deal activity all around the world since 2012. Most of the big deals have come in 2015 and 2016, but check out the full list and a staggering graphic that shows how volatile the industry is.
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Breaking Down Delivery Transactions
Restaurant analyst and consultant John Gordon of Pacific Management Consulting Group did a deep dive on the economics of third-party delivery for standard QSR and casual-dining operators. It’s little surprise that margins and percentage contributions fall even with highly incremental orders. But as Gordon explores, when you add on royalties, the ad fund and labor, margins fall precipitously.
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What Do Foodies Order on Amazon? Coffee
Research by One Click Retail, an ecommerce data and analytics firm, found that Amazon customers are a caffeinated bunch. Three of the five top food items are coffee. San Francisco Bay Coffee, Green Mountain Coffee and Starbucks Coffee are all in the top-five food items delivered by the online retailer. Grocers should be worried, Amazon’s grocery delivery sales jumped 50 percent year-over-year in 2017 to date. Granola bars (KIND) and baby food (Gerber) were also in the top five.
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Vending Machines Offer Oysters
For oyster fanatics and people who are curious about the symptoms of food poisoning, a French company has a novel proposition: an oyster vending machine. Oyster farmer and entrepreneur Tony Berthelot created the machine as a way to push revenue further by offering the slimy sea delicacy off hours. He also said the machine appeals to a younger generation accustomed to getting everything they want whenever they want. The machine will be stocked and operating 24-7.
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