Taco Bell and Chipotle Want to Shave Time off Food Deliveries

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“When it comes to restaurant delivery, speed matters. And the burrito chains want to be faster.

Taco Bell –– which now offers delivery at roughly two-thirds of its U.S. restaurants through GrubHub Inc. with plans to continue expanding the service –– says its average delivery time is 34 minutes. The company acknowledges that’s not good enough for today’s demanding customer.

Chipotle Mexican Grill Inc., meanwhile, says it’s averaging between 28 and 32 minutes for delivery, but it thinks it can shave four minutes or so as it expands pickup shelves across the nation. It’s also introducing prepaid delivery so drivers don’t have to pay in stores. It’s all part of a digital push that is a key part of the comeback plan laid out under Chief Executive Officer Brian Niccol in his first year on the job.”

“While restaurant delivery has long been part of the culture in major cities like New York and San Francisco, pizza was often the only option in many markets. That has started to change as on-demand delivery services like DoorDash, Postmates and Uber Eats have proliferated, joining GrubHub to expand delivery options.”

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Digital Ordering to Triple by 2020

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Restaurant digital orders have grown an average of 23 percent, per year since 2013, and will triple by the end of 2020, according to a report from NPD Group.

The report, called Delivering Digital Convenience, found that 70 percent of a restaurant’s digital orders come through its mobile app or its website, with the remaining orders coming through third-party apps or websites. Customers used the restaurant’s own app most of the time because of rewards points or savings, and other brands appeal to customers because they want to create a custom order or take friction out of the ordering process.

Third-party apps like DoorDash, UberEats or Grubhub/Seamless accounted for 40 percent share of the 20 most used apps, and are used by consumers who want to look up various food items and check prices.

“Digital orders will remain an outsized source of growth for the restaurant industry over the next few years, and operators who desire to grow need to embrace a digital strategy,” said David Portalatin, NPD food industry adviser and author of Eating Patterns in America, said in the announcement. “There are clear leaders in the digital ordering space, and third-party providers who have achieved critical mass the fastest.”

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Papa John’s Accepts $200 Million Investment From Activist Hedge Fund

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“Papa John’s International Inc. is handing over the keys to the embattled pizza chain in exchange for a $200 million investment.

Activist fund Starboard Value LP is supplying the funds and its chief executive officer, Jeffrey Smith, is becoming chairman. He steps into the role vacated last year by Papa John’s founder John Schnatter after reports emerged that he used a racial slur. Schnatter tried to make his own similar deal and said he was shot down.

The infusion comes as the pizza chain also reported preliminary results for the fourth quarter and last year that missed analysts’ estimates. The company had already been in a sales slump before the latest controversy began last summer. Papa John’s plans to use the proceeds to repay debt and invest in the business, it said in a statement. Starboard is making its investment through the purchase of new convertible preferred stock, and the deal includes the option of an additional $50 million investment.

Shares of Papa John’s gained as much as 11 percent to $42.74 in New York trading Monday, the biggest intraday jump since July.”

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New NYC restaurants: Danish bakery Ole & Steen’s stateside debut, and more

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“Ole & Steen

“NYC’s Nordic offerings continue to grow beyond destinations such as the Great Northern Food Hall with the stateside debut of this 28-year-old Danish bakery. Find Danish rye breads, pastries and tarts, as well as sweet or savory porridges, open-faced sandwiches, salads and more on the all-day menu. Now open Mon.-Fri. from 6:30 a.m.-10 p.m., Sat.-Sun. from 7:30 a.m.-10 p.m.; 873 Broadway, 929-209-1020”

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The Rise, Decline and Section 363 Sale of the New York Coffee Chain Fika

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“Though the word “fika” famously refers to the Swedish cultural practice of slowing down to relax with those around you over coffee or tea and a small bite, the New York City coffee chain Fika has been operating at a breakneck pace in recent years.

By 2016, ten years after opening Fika with a single Manhattan location, founder Lars Akerlund had led the boutique coffee chain to 17 locations while signaling the company’s intentions to expand its physical footprint into more U.S. cities and countries overseas. Two years after that, by Sept. 2018, Fika had filed for Chapter 11 bankruptcy.

Today, the company is down to six New York locations, and it has recently been acquired through an auction process under the U.S. Bankruptcy Code, section 363, according to an announcement made by Cozen O’Connor, a law firm involved with the acquisition process.

“The expansion required significant start-up costs for each of the locations before they could become profitable,” the firm said, noting the rapid addition of 12 Fika cafes that began in 2013. “FIKA was subsequently unable to secure additional investors to cover the expansion costs and its operations alone could not absorb the increased start-up expenses. The legacy costs from the aggressive expansion forced FIKA, therefore, to close a number of locations and return to a streamlined, conservative business model centered on fewer stores.”

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Request for Proposals for the Sale of Food and Beverages from Mobile Food Units at Flatbush Ave & Plaza St, 9th St & Prospect Park West, Dog Beach, 10th Ave Ballfields and the Vanderbilt Playground Loop in Prospect Park, Brooklyn, NY

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Flatiron Plaza Food & Beverage Kiosk RFPs

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The Flatiron/23rd Street Partnership (BID) is seeking proposals from qualified firms to manage and operate an outdoor food or beverage kiosk (“Kiosk”) in the Flatiron North Public Plaza, located at 23rd Street, Broadway, and Fifth Avenue, and the Flatiron South Public Plaza, located on Broadway between 22nd and 23rd Streets, adjacent the famed Flatiron Building.

Created by the by the New York City Department of Transportation (DOT) in 2008, the Flatiron Public Plazas have become town squares, where countless residents, employees in the neighborhood, and visitors from around the world converge each day. The BID has a concession license agreement with DOT for the operation, management, and maintenance of the Plazas which allows for the operation and management of subconcession(s).

It is the goal of the BID to draw customers to a successfully-branded food or beverage kiosk that is successful and enhances the atmosphere and experience of the Flatiron Public Plazas and this vibrant neighborhood.

A nonmandatory pre-bid conference will be held on Thursday, January 24th at 10 am at the office of the Flatiron BID (27 West 24th Street, Suite 800B). The pre-bid conference will include a site visit to the Flatiron Public Plazas. Questions related to the RFPs should be submitted in writing to the BID no later than Friday, February 1st at 5 pm. All proposals are due by 5 pm on Friday, February 22, 2019.

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