NYC Council Investigates Third Party Delivery Companies

This past June, the Small Business Committee within the City Council of New York conducted a hearing regarding third party delivery business practices. The investigation, entitled “The Changing Market for Food Delivery,” is arguably the first of its kind. The hearing endeavored to address the growing tensions between restaurant operators and third party delivery companies.

“New York continues to be a trailblazer,” said Committee Chairman Mark Gjonaj. “I’m proud to be part of this historic moment.”

Restaurant operators hope that the hearing will kindle new government regulations that better protect the needs of the industry. According to Robert Bookman, counsel for the local industry trade group New York City Hospitality Alliance, “We’re calling for both the federal government and the state attorney general to look into this matter.”

The Small Business Committee called on restaurant operators, third party delivery companies, and various trade groups to share their practices, concerns, and complaints. The hearing was open to the public. Discussion ran long, and largely focused on rate structures, questionable fees, and the future plans of third party delivery companies.

The difference in perspective between the restaurant operators and the third party deliverers was considerable. Operators like Robert Guarino, the co-founder of 5 Napkin Burger, argued that delivery companies have every intention of moving toward discarding restaurants and offering their own meals for delivery. Third party representatives emphatically denied this claim.

Andrew Rigie, the executive director of the Hospitality Alliance, provided the council with an extensive list of questions for third party deliverers. Some of the questions addressed:

  • If financial factors don’t determine where a restaurant is listed on a third party’s app, what variables do? How can restaurants be safeguarded against erroneous fees?

  • Who owns the information on a restaurant’s customers who order through a third party, and what happens to the data if the establishment pulls out of the arrangement?

  • Does the prominence and penetration of the big third-party delivery services constitute a restraint of trade?

Restaurant operators appear to universally agree that third party delivery companies need to interact with restaurants in a clearer and more transparent fashion, and third party representatives at the council pledged to provide that. Next steps for both sides of the industry, however, remain unclear.

Why are CBD Edibles Being Pulled Off Restaurants in Some Parts of the Country?

Across various parts of the country, health department officials are asking restaurants to voluntarily pull CBD-infused foods and drinks off menus.

The latest local and regional governments that have reportedly taken steps against CBD are New York City, California, Texas, and Ohio banning the substance from restaurants and retail stores.

For example, according to the New York City’s official government website, beginning July 1, New York City restaurants that don’t comply with the CBD ban voluntarily could be embargoed of their CBD products by the health department... and by October 1, officials “will begin issuing violations to restaurants and retailers for offering CBD-laced foods and drinks. Violations may be subject to fines as well as violation points that count toward the establishment’s letter grade.”

CBD, or cannabidiol, which derives from cannabis, doesn’t cause the psychoactive effects for the lack of enough THC—the compound that gives people the “high” sensation.

In fact, CBD proponents claim the substance is mainly used for its therapeutic benefits helping people relax, ease pain, anxiety, insomnia, and even depression.

Despite the fact that not many studies have been done on cannabidiol in human trials, as pointed out by a recent New York Times article, we are seeing an immense amount of CBD products being sold across the country, with Walgreens as the latest retailer to announce plans to sell creams, patches, and sprays in nearly 1,500 stores in select states.

So, why is it being pulled out of the restaurant space, specifically?

Although, the farm bill that was passed in December 2018 legalized industrial hemp in the U.S., this only means industrial hemp was removed from the controlled substance category. Anything that is put in foods and drinks has to be regulated by the Food and Drug Administration and, as of right now, CBD is not determined safe or effective for other health conditions aside from being an active ingredient in an approved drug that treats two rare and severe forms of epilepsy.

The FDA regulations are something different and there’s a huge push from lawmakers to change this.

Since there is no federal law specifically addressing CBD-laced edibles, some states, like Colorado and Maine, have already attempted to clarify the status of the substance by passing laws allowing the addition of CBD to food, as reported by Reuters. California and Texas have introduced bi-partisan legislation to do the same, as reported by the Associated Press.

Last week, the FDA slated the first public hearing to take place May 31 to discuss how to regulate CBD food and beverage products.

In the meantime, here at Foodable, we are tracking the latest in this arena:

In a podcast episode of Chef AF, Chef Brandon Foster shares with us a personal anecdote about how CBD has positively affected a local farmer to The point where this person wanted to dedicate the rest of his available land to grow hemp for the CBD industry.

In an On Foodable Feature episode, our host Layla Harrison breaks down for our audience some of the CBD-infused products that have stood out from the rest.

And in a Barron Report podcast episode, we learned about Azuca— a company offering CBD and THC products ranging from edibles to sweet syrups.

We expect to continue hearing about ‘Culinary Cannabis’ and its impact on the restaurant business and society as a whole. so, stay tuned for more interesting content!

Dig Inn Raises $20 Million in Funding Round Led by Danny Meyer's Investment Group

The farm-to-table fast casual Dig Inn has secured $20 million in a funding round, led by Danny Meyer's Enlightened Hospitality Investments.

Dig Inn founder and CEO Adam Eskin announced the latest investment in a post on Medium where he also shared what the company plans to do with the additional funding.

The fast casual has been expanding rapidly. With 26 store locations in New York and Boston. But the latest funding round will help the brand launch in a new market- Philly and the company is also aiming to open an additional 10 stores.

To do that, the chain is going to need more manpower. So the restaurant will be ramping up its hiring.

"We’ll hire another 300 men and women, many of which have never stepped foot in a restaurant kitchen, and teach them that knife skills are life skills, and how learning how to cook can change everything," writes Eskin for "Medium."

The chain has now raised $71.5 million total. Dig Inn, which was founded about 7 years ago, is one of the leading trendy concepts aiming to bring healthy, all-natural food with fast service to customers.

With its new partnership with the Danny Meyer team, the restaurant will also be ramping up its supply of healthy vegetables.

"We’ll supply our restaurants with over 8 million pounds of vegetables from the 80+ farmers that make up our growing community, including 100,000 pounds from our own Farmer Larry Tse, his team, and his newly launched Young Farmer Incubator Program," writes Eskin.

The chain will focus on not only expansion and increasing food supply but it will be expanding it's delivery service and opening a full-service concept in New York City's West Village as well.

Read more at "Restaurant Dive" now.

Chains like Dig Inn with veggie-forward menus that deliver are going to stand out in today's market. Plant-based consumption was up 300% last year. Although the demand is high for these menu items, there aren't that many restaurants offering delivery of plant-based meals. Watch the On Foodable: Industry Pulse episode below to learn more about how consumers are wanting more plant-based food delivery options.

Why the Food Scene in “Forgotten Cities” Is As Important As Those in New York, Chicago, and L.A.

On this episode of Chef AF, our host Chef Jim Berman sits down with Chef Derek Stevens— a Steel City “burning star,” as he calls him, for shining bright in the local food scene. Stevens is the co-owner and executive chef of Pittsburgh’s Union Standard. Both gentlemen are Pittsburgh-natives and they focus their conversation around those cites that seem “forgotten” in the food world.

The two agree that as chefs they are always on the hunt for honest food. Chef Stevens is candid about his favorite Pittsburgh food spots, highlighting establishments like LeoGretta located in the Carnegie neighborhood and ran by Chef Greg Alauzen; as well as, DiAnoia’s Eatery in the Strip District and ran by Chef Dave DiAnoia.

“When I talk about those chefs… when I eat their food, I think ‘Damn, I wish I could cook like this guy’ you know?,” says Chef Stevens. “It’s really heartwarming in a way, you know? They really got it figured out. And sometimes they’re thinking the same thing [about other chefs].”

Listen to the podcast above to hear the full conversation, Chef Steven’s thoughts on the resurgence of downtown areas in cities like Detroit and Milwaukee, and how to cultivate interest for a local food scene in a “forgotten city.”


Show Notes:

  • 1:55 - Chef Derek Stevens’ Background

  • 4:07 - Favorite Pittsburgh food spots

  • 7:37 - Comfort Food vs. Fine-Dining

  • 12:47 - Cultivating Interest for local food scene

  • 17:19 - Incubators and the food scene

  • 23:13 - Labor Shortage

Hosted by:

Jim Berman

JIM BERMAN

Expert Columnist / Show Host


VIEW BIO
 
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Is The Future of Dining Digitization? Allset CEO Thinks So!

We are living in a world with a live and thriving “on-demand” economy.

From having the choice to watch your favorite TV shows on your own time and schedule, to ordering meals and groceries through your mobile phone or online.

Companies seem to have finally figured it out…

Time is of the essence!

People seem to be willing to pay for their precious time to avoid time-consuming, mundane tasks. And with so many efficiencies taking place in different aspects of people’s lives, consumers are getting accustomed to speedy services so they can get back to what’s most important to them.

This phenomenon has us thinking… Is the future of dining digitization?

On this episode of On Foodable Feature, we learn from Stas Matviyenko, CEO and co-founder of Allset—a San Francisco-based application that aims to help restaurants provide a more efficient dining experience to guests who are short for time.

Watch the full interview to learn how this app can help increase a restaurant operation’s bottom line, how the technology integration would look like, and costs associated with the service!