Keurig Dr Pepper Foodservice Solutions’ Post

Are fast food “value meals” really still a value? McDonald’s recently rolled out a $5 Meal Deal in an effort to win back customers amid rising menu prices. With the deal offering a sandwich, small fries, nuggets, and a drink, it seems like a bargain. But is it enough to counter the frustration many feel over price hikes that outpace inflation? In my latest analysis, I explore whether this promotion is too little, too late. As more consumers opt to cook at home or seek cheaper alternatives, are fast food giants like McDonald’s risking long-term loyalty by prioritizing profit over value? Check out the full article to see whether corporate greed is pushing customers away for good. #McDonalds #MarketingAnalysis #ConsumerBehavior #BrandLoyalty #CorporateGreed #Advertising #FastFood #MarketingStrategy https://lnkd.in/gRXfZDj2

I just heard some exciting news and had to share it with you! You know how Blinkit delivers groceries, right? Well, after Swiggy's launch of "bolt," Blinkit is now planning to deliver quick snacks too! Imagine getting hot samosas and chai delivered to your home in just 10 minutes. Sounds pretty cool, doesn't it? So, what’s going on? Blinkit is stepping into the quick bites game, starting with crowd-favorites like samosas and sandwiches. And if it’s a hit, they’re planning to expand the menu to include heartier options like pasta and noodles. It's like having your favorite street food stall at your fingertips, minus the wait. What’s interesting is how fast this industry is evolving. Competitors like Zepto Cafe and Swiggy’s Bolt are already in the game, racing to meet similar customer demands. Zepto, which launched its quick snack service in 2021, started delivering items like chai, coffee, and croissants in under 10 minutes. Swiggy’s Bolt, which recently launched, delivers food from popular restaurants like KFC, Starbucks, and Chaayos, all within a short 2 km radius. This competition isn’t just about speed; it’s about offering variety and becoming the go-to option for those looking for a quick bite without stepping out of the house. As the quick commerce industry continues to grow, we’re seeing a significant shift in how we engage with food and everyday essentials. This got me thinking—could this change how we enjoy food? Are we trading the joy of a cafe visit for the convenience of instant delivery? Will we miss the aroma of a busy kitchen or the buzz of a crowded restaurant? What do you think about getting snacks delivered so fast? Do you like the idea, or do you prefer going out to eat? Let me know in the comments!

Provocative article from Joanna Fantozzi about the lines blurring between retail and foodservice. On-demand delivery allows for a Target pick-up in addition to a pizza, for example. So what is #foodservice and what is retail food? How will it be tracked and sized effectively moving forward? Are traffic counts meaningless? Another fundamental and structural change to add to the likes of AI in what was thought was a mature industry. #foodservice #delivery #retail #food

The rise of the fakeaway: The popularity of restaurants’ fakeaway options such as Franco Manca pizzas, Gourmet Burger Kitchen burgers and itsu meals has soared over the past year, according to online supermarket Ocado Retail. Ocado reports over 50% growth in sales for brands like itsu and Franco Manca. Products from popular restaurants or fast food brands are increasingly common in most major supermarkets. The rise of the fakeaways trend is largely a result of the cost-of-living crisis, which led many consumers to seek out more budget-friendly ways to enjoy a treat at home,” says Chitnis. The research found that three-quarters (75%) of Brits were now more conscious of spending on takeaways and meals than last year. This changing consumer habit is reflected in Ocado Retail delivery data, which suggests customers seek restaurant standards at home, particularly on weekends. Demand for these products peaks at times when shoppers would have traditionally gone for a restaurant meal out or ordered a takeaway.

There are a lot of reasons for McDonald’s 1% drop in income. And it’s not just price. It’s also a perceived value and there is some evidence McDonalds doesn’t have the perceived value of Chipotle. Also, due to higher prices, there might be more meals at home. Thats good. Hopefully its healthier What Chipotle and McDonald’s say about the consumer slowdown https://lnkd.in/gXnpPNae from The Economist

What do supermarkets, quick-restaurants and gas stations have in common?  Healthy choices at convenience and price.  Supermarket News reports a shift in food retailers which is an increasing trillion dollar industry responding to customer demand - and it’s working.“Why the shift? It boils down to three consumer demands:Convenience: Busy lifestyles have increased the need for quick, high-quality meal optionsValue: Rising dining-out costs make fresh-prepared meals at grocery and convenience stores a more attractive choiceHealth: Shoppers want healthier, fresher alternatives to traditional fast food” (supermarket news.com)#consumers #foodretailers https://lnkd.in/gRvMfPaU

Fascinating report from DoorDash on restaurant online ordering trends in US (May 2024) based on their transactions. Key takeaways below: - 52% prefer to eat on the couch and 21% on their bed! - 63% eat in restaurant containers to avoid doing dishes! - 30% GenZ discover restaurants on TikTok, 29% Instagram. - 67% ordered from a new store in Q1-24 compared to Q4-23 - Friday & Saturdays are peaks, especially 6 pm (dinner) - 55% choose a new restaurant for menu, 50% for pricing - 21% increase in orders YoY, 86% order twice a month More than anything, it shows how similar (online) consumers are everywhere! #online #ecommerce #food #beverages #delivery #platform

convenience store ‘in-store experience’ Consumers have crowned Wawa the nation’s No. 1 convenience store chain “Loyalty programs are a real differentiator” “They give you substantial benefits for being a frequent visitor to their store” robust loyalty programs--stores that offer memberships have customers who are “more satisfied, perceive higher value, visit more frequently, and are more likely recommend the store to others compared to nonmembers” chains that scored the best also have something else in common: robust loyalty programs : most popular convenience stores have focused on making food — and making it well — as consumers focus more on the in-store experience when deciding where to fill up “You see it with most of the big national and regional chains” “They’re saying ‘We’re going to have really attractive food offerings. Not just a preheated breakfast sandwich, but food that will draw people in’ ”Wawa’s expansive menu features more than just hot sandwiches, pizza and quesadillas. There is also a full breakfast menu as well as smoothies, shakes, baked goods and fresh fruit “The companies that are ultimately going to succeed are the ones that offer the most satisfying experience to consumers” “The ones that keep consumers coming in and even going out of their way to visit those locations”

The era of convenience is upon us, and nowhere is it more evident than on the battleground of breakfast choices. According to Technomic, Inc.'s latest insights, #conveniencestores are emerging victorious in their breakfast food sales, leaving traditional grocers in their wake when it comes to capturing #consumers’ attention.   As convenience stores dominate the breakfast landscape, #grocers will have to rewrite their playbooks to stay relevant, per the latest in Supermarket News. Check it out here:

What Do Distribution and America’s Takeout Food Preferences Have in Common? Ever wondered what makes DoorDash so successful? Well, it all started with a group of Stanford students back in 2012. Fast forward to today, and DoorDash holds about 56% of the American online food delivery market. With such a stronghold, they’ve got some pretty unique insights into what Americans are ordering and how our food habits have evolved. For example, did you know that French fries are the most-ordered food on DoorDash's platform of all time? Since 2013, over 600 million orders of fries have been delivered! For distributors, these are the "A" items—you always need to have them in stock, aiming for service levels above 99%. Now, here’s a fun fact: the Cobb salad is the only food item that’s stayed in the top 10 over the years, even though it’s slipped five spots in the last decade. Distributors should see these as "B" items—not as frequently ordered, but still essential to keep in your lineup so customers don’t wander off to competitors. On the flip side, remember the chipotle chicken sandwich? It used to be a big hit but has now dropped out of the top 10. However, spicy chicken sandwiches are still popular (my favorite is Chick-fil-A) Ranking sixth in 2023. For distributors, this shows items that were once a big deal but are now fading away. So, what’s the big takeaway here? Distributors need to keep an eye on trends and shifts in customer behavior to stay on top of their game. If sales dip in 2024, it’s crucial to figure out whether demand for certain items has decreased or if customers are buying those items elsewhere. It’s important to have a diverse product lineup, but just as important to track changes in customer preferences. By staying tuned into these trends, you can ensure your business stays ahead and meets customer demand effectively. Want to dive deeper? Our team is just one call away to help you out. #InventoryManagement #WholesaleChallenges #distribution Photo from visual capitalist