Carl Orsbourn

An extensive quote from Peter Backman's delivery newsletter. What do you think? Will #restaurants turn to delivering orders themselves? "the most widely used original delivery model – using third party aggregators to deliver the delivery – has flaws. Those flaws are the high fees charged (they’re necessary to third party delivery platforms who otherwise won’t generate sufficient revenue to make them attractive to investors). Another flaw is the lack of transparency – the restaurant has no contact with their customers; and the third is that the delivery aggregators control the data, only providing the bare minimum to their restaurant partners. Because of these flaws, restaurants are searching for alternative delivery models. And that means, in effect, attempting first party delivery – they will do it themselves. In saying that we should note that some sectors – Mom and Pop stores, ethnic takeaways, pizza companies – built their delivery models in what seems like the pre-2010 stone age on the back of first party delivery. In other words they did it themselves. And that’s what many restaurants, having followed the third party model, are attempting to do. But the transition – from third party to first party delivery – is difficult. The reasons for this difficulty are many but they can be summarised as: complexity – introducing a first party delivery model that can compete with the services offered by third party delivery aggregators – means that the restaurant has to master a wide range of tech issues (which, as we’ve already noted, are not part of a restaurant’s basic skill set), they have to become technically competent. That does deter many restaurants from going down the path from third party delivery to first party delivery. But it means that the nature of the people involved in running a restaurant is evolving – with the recruitment of a cadre of technicians, data-driven analysts and others aligned with the needs of a modern delivery system." If you haven't already signed up for Peter's newsletter, you should. You can do so at theDelivery.World: https://lnkd.in/eYgMwt3u

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Bill Ackman's largest individual holding as of today is #Chipotle. This company is an outlier in the restaurant industry due to their robust operating efficiency, despite operating a primarily corporate-owned chain (16% operating margin, average for restaurants is about 9%). And also their rapid rate of growth in recent years. The issue many investors have with Chipotle is its extremely high valuation. Currently they have a Price/Earnings ratio of 65.5x and a Price/Sales of 8.5x (average for the restaurant industry is 15.1 and 1.4, respectively). He initially invested into Chipotle around August of 2016, a time when it was trading at a depressed valuation due to food safety investigations which were threatening the company's brand image. However Bill Ackman's research found that, historically, large restaurant chains that faced these kinds of allegations were eventually able to move past them, despite some short term damage to the brand. So he used it as an opportunity to open a position, and his fund's returns since then have been ~700%. I think this is a very good lesson to investors on recognizing a high quality business, and having conviction when the market presents an opportunity to invest in the business at a fair price. And this is something you don't need a Harvard MBA to do. #valueinvesting #BillAckman

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DIRECT TO RETAILER - MANUFACTURER DRIVEN MARKETPLACES Direct to consumer simply does not stack up for most food & drink manufacturers, due to high shipping costs, low unit pricing, tight margins and varying consumer demand. But, I believe that Direct to Retailer is a huge opportunity for most consumer goods companies. Why? ✅ Small to medium retailers buy in larger quantities but less often, reducing delivery costs. ✅ It's now easier than ever to understand independent retailers' sales & engage in two-way communication. ✅ Manufacturer quantity and delivery flexibility can expand retailer range & availability, and boost retailer loyalty. ✅ Digital technology enables manufacturers to control products better, cut costs, and boost margins. Supplying direct to retail is how most CPG brands started, with some, like The Coca-Cola Company, continuing this approach. While it's cheaper to deliver lorry-loads to big supermarket chains, a fresh perspective and a commitment to flexibility could transform the direct to retail channel, better serving both retailers & customers, and potentially creating a future growth powerhouse. As evidence of the opportunity, take a look at BEES by AB InBev. As it states on its website "𝘚𝘮𝘢𝘭𝘭 𝘢𝘯𝘥 𝘮𝘦𝘥𝘪𝘶𝘮-𝘴𝘪𝘻𝘦𝘥 𝘳𝘦𝘵𝘢𝘪𝘭𝘦𝘳𝘴 𝘢𝘳𝘰𝘶𝘯𝘥 𝘵𝘩𝘦 𝘸𝘰𝘳𝘭𝘥 𝘬𝘦𝘦𝘱 𝘧𝘢𝘤𝘪𝘯𝘨 𝘵𝘩𝘦 𝘴𝘢𝘮𝘦 𝘱𝘳𝘰𝘣𝘭𝘦𝘮𝘴. 𝘗𝘰𝘰𝘳 𝘴𝘦𝘳𝘷𝘪𝘤𝘦, 𝘭𝘪𝘮𝘪𝘵𝘦𝘥, 𝘰𝘳 𝘯𝘰 𝘢𝘤𝘤𝘦𝘴𝘴 𝘵𝘰 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯. 𝘜𝘯𝘦𝘲𝘶𝘢𝘭 𝘱𝘰𝘸𝘦𝘳 𝘣𝘢𝘭𝘢𝘯𝘤𝘦 𝘸𝘪𝘵𝘩 𝘷𝘦𝘯𝘥𝘰𝘳𝘴. 𝘉𝘶𝘵 𝘪𝘧 𝘤𝘰𝘯𝘴𝘶𝘮𝘦𝘳𝘴 𝘤𝘢𝘯 𝘣𝘦𝘯𝘦𝘧𝘪𝘵 𝘧𝘳𝘰𝘮 𝘥𝘪𝘨𝘪𝘵𝘢𝘭 𝘵𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯, 𝘵𝘩𝘦𝘯 𝘸𝘩𝘺 𝘴𝘩𝘰𝘶𝘭𝘥 𝘳𝘦𝘵𝘢𝘪𝘭𝘦𝘳𝘴 𝘣𝘦 𝘭𝘦𝘧𝘵 𝘣𝘦𝘩𝘪𝘯𝘥?   𝘛𝘩𝘦𝘺’𝘷𝘦 𝘩𝘢𝘥 𝘦𝘯𝘰𝘶𝘨𝘩. 𝘈𝘯𝘥 𝘴𝘰 𝘩𝘢𝘷𝘦 𝘸𝘦. 𝘈𝘵 𝘉𝘌𝘌𝘚, 𝘰𝘶𝘳 𝘢𝘮𝘣𝘪𝘵𝘪𝘰𝘯 𝘪𝘴 – 𝘢𝘯𝘥 𝘢𝘭𝘸𝘢𝘺𝘴 𝘸𝘪𝘭𝘭 𝘣𝘦 – 𝘵𝘰 𝘱𝘶𝘵 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴 𝘢𝘵 𝘵𝘩𝘦 𝘩𝘦𝘢𝘳𝘵 𝘰𝘧 𝘦𝘷𝘦𝘳𝘺𝘵𝘩𝘪𝘯𝘨 𝘸𝘦 𝘥𝘰. 𝘔𝘢𝘬𝘪𝘯𝘨 𝘵𝘩𝘦𝘪𝘳 𝘭𝘪𝘷𝘦𝘴 𝘦𝘢𝘴𝘪𝘦𝘳 𝘢𝘯𝘥 𝘵𝘩𝘦𝘪𝘳 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴 𝘮𝘰𝘳𝘦 𝘱𝘳𝘰𝘧𝘪𝘵𝘢𝘣𝘭𝘦. 𝘛𝘩𝘳𝘰𝘶𝘨𝘩 𝘰𝘶𝘳 𝘉2𝘉 𝘦-𝘤𝘰𝘮𝘮𝘦𝘳𝘤𝘦 𝘢𝘯𝘥 𝘚𝘢𝘢𝘚 𝘱𝘭𝘢𝘵𝘧𝘰𝘳𝘮, 𝘸𝘦 𝘣𝘳𝘪𝘯𝘨 𝘵𝘩𝘦 𝘱𝘰𝘸𝘦𝘳 𝘰𝘧 𝘥𝘪𝘨𝘪𝘵𝘢𝘭 𝘵𝘰 𝘴𝘮𝘢𝘭𝘭 𝘢𝘯𝘥 𝘮𝘦𝘥𝘪𝘶𝘮-𝘴𝘪𝘻𝘦𝘥 𝘳𝘦𝘵𝘢𝘪𝘭𝘦𝘳𝘴 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘤𝘰𝘮𝘱𝘢𝘯𝘪𝘦𝘴 𝘵𝘩𝘢𝘵 𝘴𝘦𝘳𝘷𝘪𝘤𝘦 𝘵𝘩𝘦𝘮, 𝘶𝘯𝘭𝘰𝘤𝘬𝘪𝘯𝘨 𝘯𝘦𝘸 𝘨𝘳𝘰𝘸𝘵𝘩 𝘰𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘪𝘦𝘴 𝘧𝘰𝘳 𝘢𝘭𝘭." BEES Q1 results show ⭐ 7.3 million orders ⭐ $11 billion gross merchandising value ⭐ $465 million GMV of third-party sales ⭐ 3.6 million monthly active users ⭐ 26 live markets Bees proves that direct to retailer can be a viable and profitable growth channel. Any manufacturer looking for future growth must surely be including direct to retailer in their strategies. #digitalcommerce #ecommerce #cpg #cpgindustry #fmcg #fmcgindustry #markeplaces https://lnkd.in/egQbZSbc

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When restaurants use multiple third-party vendors like POS platforms, Order Ahead, Delivery, Kiosk, Tableside Payments, etc., we often hear complaints from operators about getting boxed in by these vendors dictating payment options for their customers. That feedback led us to develop a solution — CardFree’s Universal Checkout. It’s a unified, cross-channel, frictionless payment interface, operating the same way on every channel regardless of your digital ordering provider, POS, or payment processor. Here's why Universal Checkout is a game-changer for restaurants today: 🔹 Unified Experience: No matter how your customers engage: - Mobile web - Native app - Tableside - Kiosk - Drive-Thru - Call-in Text-To-Pay They'll encounter the same smooth, intuitive interface. This isn't just about aesthetics; it's about a fast, familiar, easy-to-use payment experience. 🔹 Control Your Destiny: With third-party vendors pushing their own processing solutions, it's easy to end up juggling multiple systems with their own set of fees. Universal Checkout gives you control, allowing you to consolidate vendors and reduce costs. 🔹 Reduce Vendor Fatigue: Post-pandemic, the rapid adoption of various touchpoints like kiosks, online ordering, and tableside checkout introduced a complex web of dependencies. Universal Checkout simplifies this, consolidating multiple needs into a single, reliable flow—something many of you have told me is increasingly critical. 🔹 Economical: Why pay more when you can consolidate all these interactions under one umbrella with your chosen processor? This reduces fees and the operational drag of managing multiple payment systems. Universal Checkout isn't just a tool. It's a strategy to streamline your operations and ensure every customer transaction is as efficient and easy as possible. It's about making the payment process invisible, putting the attention back on your food and service. More info here: https://lnkd.in/gpYPvgB8 #RestaurantTechnology #Innovation #CustomerExperience #CardFree

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Why CPG Brands are Embracing Foodservice Channels—And How It Reflects Broader Industry Trends When Neutral Foods landed their milk in Shake Shack, they showcased a key trend in the CPG industry: the growing preference for foodservice channels. This strategy offers a compelling alternative to the traditional retail route, particularly for brands eager to bring their products to market quickly. One of the most significant advantages of the foodservice channel is its speed. In retail, the timeline from product approval to shelf placement can stretch over months, often dictated by the retailer’s reset schedules. For example, if a product is approved in June, it might not hit shelves until the following January. Foodservice, however, can dramatically shorten this process. Neutral Foods moved from their initial meeting with Shake Shack to the first order in about six weeks—highlighting the agility and responsiveness of this channel. This rapid execution is crucial in an industry where consumer preferences and market conditions can change rapidly. It allows brands to respond to trends and opportunities with greater agility. Additionally, the economic considerations in foodservice can be more flexible, depending on distribution dynamics and the leverage of key players. To keep up with this fast-paced environment, businesses must build teams that are equally agile and adaptable. This means integrating talent that can navigate these quick-turnaround channels and make strategic decisions on the fly. Emphasizing flexibility and cross-functional expertise within your team structure can provide the necessary edge to thrive in the dynamic foodservice landscape. Leveraging flexible, fast-moving channels like foodservice helps brands stay ahead of the curve and meet consumer demands more efficiently. By understanding and adapting to these shifts, and by building responsive and versatile teams, businesses can navigate the complexities of today’s market with greater ease and effectiveness. #CPG #Foodservice #IndustryTrends #TalentManagement

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What's next for the adult beverage market? To answer that question, Joseph Tarnowski sat with NielsenIQ's Kaleigh Theriault at ECRM's On & Off Premise Adult Beverage Session to learn what brands and retailers can expect over the next year in the segment. Here's a quick recap: BEER: With dollar volume declines due to inflationary impacts, the end of the year will see more promotions and subsidization at retail to drive traffic to the store. WINE: Declines in the value and high-end segments means that the sweet spot of $20 should be a target for retailers and brands -- this is ideal for holiday gifting and dinner parties. SPIRITS: Premiumization is thriving here, with 60% of dollar sales coming from premium, super premium and ultra premium spirits. There is also a shift toward RTDs, and innovation across segments, such as whiskey aged in wine barrels. Celebrity owned or promoted spirits have taken off and will continue to grow, as they are a way for consumers to get a taste of the celebrity lifestyle without having to buy a yacht. 😁 RTDs: This segment has grown so much it's now viewed as a category on its own, with 11% of adult beverage sales. Spirit-based RTDs continue to grow, however, there is a danger of "flavor fatigue." Expect new innovations around flavor to address this, such as hot honey and spicy watermelon. Watch the video below for more insights! #beer #wine #spirits #foodservice #hospitality #restaurants #retail #cocktails #ecrmrangeme Alessandra Andrade Balerini Marc S Santos Meg Major Amanda Tomsik Sarah Davidson

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Once upon a time, Stephen Caldwell had the world at his feet. His product, Rosti Stuft Spuds, was one of the hottest CPG products in the game, and big-name retailers were predicting worldwide domination. Fast forward to an economy rife with inflation and rising overhead costs, and the challenges quickly piled up. But thanks to Caldwell’s quick thinking and creative strategy, His business is still in fighting form. How did he do it? What tips does he have for other struggle CPG entrepreneurs? Don't miss this episode! Watch Now: https://lnkd.in/eC6zZnnk

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Just how high have restaurant prices gotten? To gauge the cost of going out to lunch for consumers compared to last year, Toast examined same-store sales at quick-service restaurants on the Toast platform among 13 different food types. Here's what they found. https://lnkd.in/g6XJG2aU #foodinflation #food #restaurants #foodprices

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Many restaurants want to improve their menu, but don’t quite know the best approach. 🍽️ Our commissioned study with Forrester Consulting shows that a rigorous analytic strategy to optimize menus can help achieve organizational goals. For a quick bite, see our top 4 takeaways from the study. 📈 https://lnkd.in/g3NQhwka

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Discover how personalized experiences and data-driven strategies are revolutionizing restaurant loyalty programs. Learn how to stay ahead in the competitive QSR landscape with insights from Paytronix's 2024 Loyalty Report: https://lnkd.in/gmhyd395 #personalization #loyalty #qsr #franchise #franchisemarketing #localmarketing #distributedmarketing

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Part Two of our Google expert Ryan Milani sharing his thoughts on the impact of Google featuring AI Insights in its search results and what businesses should do. Here's a short clip. Link to the full Q&A about the impact of #aiinsights in the comments.  #foodserviceindustry #restaurantindustry #restaurantsupply #fooddistributor #foodmanufacturing #foodmanufacturer #foodmanufacturers #foodmarketing #b2bmarketing #digitalmarketing

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💥 Surging Menu Prices: What’s Going On & What Can We Do About It? - Learn from experts at IFDA SMart Since 2020, menu prices have increased by over 25%. In this session, Technomic Managing Principal Joe Pawlak will talk about their view of what has happened over the past few years to drive menu prices up and what is expected going forward Most importantly, though, Technomic will share insights on what the industry can do to help drive traffic in this higher-cost environment Don't Miss Out: https://ow.ly/Jasx50RPl72 #IFDASMart2024 #speakers #networking #eventprep #registrationopen #connectandnetwork #talkaboutwhatmatters #IFDA #IFDAEvents #IFDALearningExchanges #IFDADistributorMember #IFDADistributorEvent #PeertoPeerLearning #PeerNetworking #Smallgrouplearning #operations #b2blearning Technomic, Inc. @jmpawlak

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Bernadette Heier Food On Demand updates us on JUICER Restaurant tech startup Juicer is discontinuing its dynamic pricing platform. CEO and Founder Ashwin Kamlani told Food On Demand that the company will pivot toward a broader revenue management solution for the restaurant industry. The company’s dynamic pricing platform used AI to adjust delivery item prices based on consumer buying trends. The tech could raise or lower prices on third-party delivery apps like DoorDash or Uber Eats depending on demand at specific times. However, dynamic pricing faced its share of backlash earlier this year—when Wendy’s announced plans to use it in digital boards in drive-thrus. Many consumers thought this meant surge pricing. The controversy led The Wendy's Company to clarify that it planned to offer discounts during dayparts rather than just raising prices. Although the debacle led to an increased interest in Juicer and dynamic pricing, according to Kamlani, it also made restaurants weary. “There was some nervousness around what would happen if consumers found out that they were implementing a dynamic pricing strategy,” he said. “We had several conversations where restaurants said it’s just not for us, or we’re too afraid of what the consumer would say. We don’t want to be the next Wendy’s.” Kamlani remains confident dynamic pricing strategies work. In a former interview with Food On Demand, Shawn P. Walchef, founder and operator of Cali BBQ, said Juicer’s pricing strategy helped boost its monthly delivery revenue. Yet Juicer found that focusing on dynamic pricing for delivery made it less appealing for operators with broader needs. Coupled with the financial pressure on restaurants right now, the company decided to end dynamic pricing for its clients by the end of August. Now the startup is going all-in on a different aspect of its business, “Juicer Compete”, which Kamlani said has become more attractive to operators. This tool helps chains track competitor pricing and promotions at a hyper-local level. It simplifies the monitoring of competitor prices and deals, which usually requires manual tracking. “The restaurant industry headlines are littered with bankruptcies and missed earnings,” said Kamlani. “The desperation of restaurants to steal market share has created a value war.” Adding that he believes ‘Compete’ can be a weapon for restaurant brands and their franchisees to protect themselves. “Now what we’re doing is helping restaurants see where they might be overpriced and helping them understand how much value they should be putting in the market,” he said. “How their prices and deals compare to all of their competition within a two-mile radius of each store.” To speak to more restaurants about pricing strategies, Kamlani is...Click-thru to read more. https://lnkd.in/exphefmB

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Siete Foods' $1.2 billion acquisition by PepsiCo is making me question everything I thought I knew about scaling. I've been following their story closely since they brought Eva Longoria on board earlier this year, and it's full of surprises. In 2015, Miguel Garza cold-emailed John Foraker, then-president of Annie's, asking for advice. Foraker's response? "We had the luxury of time, you need to run as fast as you can." And they did. It's not just the numbers that are mind-boggling - it's how they got there. 💡 Veronica Garza and her brother Miguel founded Siete after Veronica's experimentation with grain-free recipes due to her autoimmune condition. 🚩 Their first major placement was Wheatsville Food Co-op in Austin - where they sold out within two days. 🛒 By 2020, they were in 13,000 (!) grocery stores across the U.S., including Whole Foods, Sprouts, Kroger, H-E-B, and Costco. Miguel’s biggest target was Whole Foods, which is headquartered in Austin. BUT here's something funny - they were rejected by Whole Foods twice before finally getting in because a customer mentioned the tortillas to Whole Foods’ CEO. What dollar value could you attribute to that word-of-mouth lol 🧪 In 2021, they launched their Small Batch platform. As an old FB eng, I LOVE this move. They pionereed A/B testing for food products. by testing new products through their eCom channel (like mini buñuelos), gathering data, and refining offerings before retail launches. What I got from this is - right mix of innovation, persistence, and smart scaling can even make niche products industry giants. What's the next Siete? I'm currently looking at Windmill and OneSkin. Lemme know!

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