Taco Bell and Chipotle Want to Shave Time off Food Deliveries

Image result for Taco Bell and Chipotle Want to Shave Time off Food Deliveries

“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.”

Read more here.

Chipotle skips sponsorship of college bowl games, offers free delivery instead

Image result for Chipotle skips sponsorship of college bowl games, offers free delivery instead

In honor of college football season, Chipotle Mexican Grill is offering free delivery now through Jan. 7 on any Chipotle order worth $10 or more.

“Given the iconic nature of Chipotle’s Burrito Bowl, many consumers have pointed out that we should sponsor a bowl game,” Chipotle CMO Chris Brandt, said in a company press release. “We listened and decided to do something about it. But, rather than spending millions on a traditional game sponsorship, we decided to give that money back to our fans in the form of free delivery.”

With the help of expanded delivery partnerships and the ability to offer delivery directly within Chipotle’s mobile app and website, the company has seen steady growth in digital orders. Last quarter, digital sales grew 48 percent, with digital orders accounting for 11.2 percent of sales, according to the release.

Read more here.

Taco Bell’s Strategy to Win in Urban Markets Involves Delivery, Kiosks and Alcohol

Screen Shot 2018-12-19 at 9.10.26 AM.png

“Throughout its company history, Taco Bell has dominated with a development strategy that focused on sprawling suburban locations equipped with drive thrus wrapped around the side. That is beginning to change.

The gigantic American Mexican quick service chain has been testing a handful of small-format restaurant concepts, branded as Taco Bell Cantina and Urban In-Line restaurants, in various urban centers for the past three years. The Urban In-Line format is essentially a regular Taco Bell, modernized and shrunk to fit on a street corner. The Cantina format is similar but also features twists on the traditional menu, including alcoholic drinks and shared platters of food.

Both concepts are tailored for densely populated locations where the rent is overwhelming, the foot traffic is high, and there’s no space to fit a traditional Taco Bell unit.”

See more here.

 

Ford teaming up with Walmart and Postmates on robot deliveries

“Ford is joining forces with Walmart and Postmates to create a grocery delivery service using self-driving vehicles in Miami, the companies announced Wednesday.

Ford has been using Miami as a test bed for its self-driving vehicles since earlier this year. And more recently, the auto giant joined with Postmates to see how people ordering takeout food would interact with an autonomous delivery van.

Now Ford is moving to the next stage: grocery delivery. The company says it will experiment with different vehicle types, as well as modifications to those vehicles needed to keep perishable food items fresh. It will also experiment with a variety of scenarios, such as multiple deliveries on one trip and the user experience of retrieving delivery items from a fully driverless vehicle.”

See more here.

Chipotle Invests in Delivery

Off-site orders are the future Chipotle sees. So much so, in fact, that the new CEO, Brian Niccol, has spent some $3m outfitting stores with new flatscreen ordering systems.  So far, Chipotle as outfitted about 300 stores with these $10,000 platforms–and expects to roll out to another 600 stores this year.

The platforms are the brand’s effort to streamline and lean in to the mobile and delivery segment of the business.  Employees see images of an order’s ingredients, instead of words, and labels are printed automatically instead of handwritten. The new system makes it easier and quicker to train workers, and orders are more accurate according to Chief Digital and Information Officer Curt Garner. The move will improve the additional production lines — dedicated to digital, online and catering orders — that Chipotle has added to supplement the front lines that serve in-store diners.

Taco Bell, KFC and McDonald’s are all now offering the service in some capacity, while Panera Bread has built its own network with 13,000 drivers. Chipotle, meanwhile, is eager to prove it can recapture growth.  Chipotle has said about 8.8 percent of orders go to its second production lines. The chain is working to boost its delivery capabilities — in April it announced a partnership with DoorDash Inc. to add the service to 1,500 restaurants. It also delivers at some locations through Postmates Inc. and Tapingo.

To read more, click here.

 

All Pizzas To Be Cooked By Robots?

24-robot-pizza.w710.h473.2x

A former Silicon Valley executive with a love of pizza and robots is on a quest to make a better pie and deliver it faster than the big chains can. Alex Garden is making robots that make pizza and they are coming for Domino’s.

The future of pie delivery, argues Garden, is being pioneered by robots at his Zume Pizza, and Bloomberg got a look inside the new company. The process seems to involve a team of enormous and very expensive-looking robots preparing pies that then get baked by a giant bank of ovens en route to customers.

One of the robots (her name is Marta) expertly spreads sauce “perfectly but not too perfectly, so it looks just like an artisan product.” Another, named Bruno, then “gently, without disturbing it,” moves the pizza into an 850-degree oven to prebake. Traditional humans are still required for tasks like sprinkling cheese, driving the delivery truck, and walking sealed boxes to customers’ doors, but these seem like minor obstacles, really. After all, even Domino’s has robots that warm pies on the road and diligently hunt down customers using GPS.  Pizza seems the ripest for full automation within fast food, so it’s safe to assume the whole industry is steadily moving toward the all-robot business model.

Right now, Zume’s pies only appear to be available in Mountain View, but Garden warns his company is targeting massive chains like Domino’s and Pizza Hut, which he says he’ll be able to dethrone by offering “the best-tasting pizza in the country delivered in 15 minutes for the same price as any of the other chains.”As Bloomberg points out, there’s “a lot of profit in robot-made pizza.” Just envision one of the major pizza franchises but with “virtually no” humans, Garden calmly instructs everyone. “It would be like Domino’s without the labor component. You can start to see how incredibly profitable that can be.”

The Persistent Rise Of Restaurant Takeout And Delivery

ubereats

Pizza no longer dominates the delivery and takeout business. Consumers are increasingly ordering their favorite foods to be delivered or to-go, rather than dining in-store. And, in fact, restaurant delivery traffic outside of pizza has risen 33 percent since 2012. This presents a unique opportunity for foodservice and restaurant operators to shift their strategies and operating processes to take advantage of the delivery and takeout trends, rather than have their dine-in numbers and market share cannibalized by competitors who are focused on these services.

According to recent surveys, 51% of Americans use delivery services to purchase meals from casual dining restaurant and 26% order takeout or delivery at least once a week. These behaviors show little sign of slowing: digital ordering and delivery have been growing 300% faster than dine-in traffic since 2014. Third party delivery services, like DoorDash, Caviar and Grubhub are becoming major marketplace competitors, providing speed, ease of use, convenience and customized offerings based on customers’ previous orders. Furthermore, larger players such as uberEats, Amazon Prime and Google, are now entering this space and beginning to pilot their own food delivery programs.

Confidence in the future and growth trajectory of this space is strong. More than half a billion was invested in the food delivery sector in 2014 – almost 13 times the amount in 2013 – with more than a billion dollars invested in 2015. As for restaurants, partnering with third party delivery services is a seductive alternative, with research showing an increase in restaurant sales volume from 10% to 20%.

Read more here.