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Why Grubhub is the Hub of the Grub Industry Right Now    
 
 
If the number of times Grubhub is mentioned in this edition was akin to jelly beans in a jar, we could award a prize to the person who guessed closest to the correct number. It's not that we're hung up on the third-party delivery service provider, it's just that Grubhub has been dialed in with dollars the last few weeks. Fortunately, we have other news as well, so keep reading to catch up on the FOD world. Have some non-Grubhub news to report? Send it to Nancy or Tom.  



-Nancy Weingartner Monroe
Editor of Food On Demand
Nancyw@foodondemandnews.com
Grubhub Partners with Groupon, Acquires 'Certain Assets'
By Nick Upton
Under a new agreement, Groupon users will be able to order food from Grubhub's restaurant base (55,000 restaurants currently). Grubhub also will acquire some of the OrderUp business that was acquired by Groupon in 2015 for $69 million. Read More
Are Third-party Services Also Delivering Liability?
By Laura Michaels
After forking over for Foodler in June, Grubhub purchased Eat24 from Yelp for $287.5 million, further solidifying its status as the leading provider of third-party food delivery.  Investors celebrated Grubhub's soon-to-be expanded menu and possibilities of the ongoing partnership with Yelp, skyrocketing the shares of both companies in the days following the announcement.
Read More
Lyft Drivers to Taco Bell: 'You Stink'
By Nick Upton
Lyft and Taco Bell thought they had a match made in heaven, but the partnership has been dubbed "Taco Hell" by drivers.  "Taco Mode" is now a publicized option for Lyft. Customers can call participating drivers and be driven through a Taco Bell while being transported home.
Read More
Grubhub Gobbles Up Yelp's Eat24
By Tom Kaiser
After forking over for Foodler in June, Grubhub purchased Eat24 from Yelp for $287.5 million, further solidifying its status as the leading provider of third-party food delivery.  Investors celebrated Grubhub's soon-to-be expanded menu and possibilities of the ongoing partnership with Yelp, skyrocketing the shares of both companies in the days following the announcement.
Read More
FOD Test Drives Delivery Service for Not-for-Profit
By Nancy Weingartner Monroe
As a past-her-middle-age woman, I am not the typical meal-delivery driver. But I do have two of the primary skill sets needed for this task: I have a reliable car and a good attitude. And I care how people rate me. The downside is that I am directionally challenged. But all that changes with technology: I have an iPhone. Even I could make all seven stops in just under three hours.
Read More
NCR Partners to Eliminate Delivery Tablets in Restaurants 
By Tom Kaiser
A new partnership between point-of-sale giant NCR and delivery providers DoorDash and Grubhub aims to eliminate the separate tablets that have become a necessary evil for restaurants looking to add revenue through third-party delivery.  Read More
Upcoming Webinar - 

Wed, Sep 6, 2017 1:00 PM - 2:00 PM CDT



Operational Logistics: Making Room for Delivery In Your Kitchen

As third-party restaurant delivery continues gaining steam, Food On Demand has assembled an all-star panel of restaurant experts and owners to discuss the back-of-the-house logistics required to set up and maintain a successful, profitable restaurant delivery operation. This one-hour discussion will include the co-founders of California-based Mendocino Farms, restaurant analyst Jim Greco of Results Through Strategy, Komiel Mohsen, owner of the Bay Area's eight-unit Nick The Greek restaurant brand and Omnivore CEO Mike Wior. Each will share their strategies for maximizing efficiency and reducing the footprint of third-party delivery, with additional insights on a fast-growing revenue stream that's transforming the restaurant industry. Q&A will follow the main presentation, giving listeners the chance to interact with the panelists and learn from their experience.
Tales Spun 'Round the Web

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.

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.
Click here to read the full story

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.
Click here to read the full story

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.
Click here to read the full story
Franchise Times Corp - Parent Co. of Restaurant Finance Monitor & Food On Demand, 2808 Anthony Lane S, Minneapolis, MN 55418
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