2018 has not been kind to the restaurant industry.
You may have noticed multiple headlines announcing the closure of stores of restaurant brands you thought were doing well in today's market.
We recently reported that even honeygrow is closing three stores in Chicago and then Taco Bueno filed Chapter 11 bankruptcy. Both these announcements were somewhat of a surprise considering both chains have grown wildly popular.
These restaurants aren't alone.
According to Foodable labs data, the number of restaurant closures is a record high. Social Restaurant Visits (SRVs) are down significantly, meaning restaurant traffic is slow.
With fewer customers visiting restaurants, fewer restaurant reservations are being made. The space is becoming even more competitive for not only restaurants but also for third-party services like restaurant reservation apps.
Resy is making a major play to compete with OpenTable.
The restaurant reservation service announced last week that it is acquiring another reservation company Reserve. OpenTable is being used by 50,000 restaurants currently. While Resy will soon be serving 14,000 restaurants after the acquisition. Resy has aggressive growth plans in the works too.
But will the recent restaurant slump take a bite out of Resy's business?
Customers aren't only visiting restaurants less but they are ordering pizza-less.
According to Foodable labs data, Pizza delivery is down by 18.5 percent year over year.
This is partly because the quality of the pizza being delivered most of the time isn't up to customers' standard.
However, there is a company that has come up with a solution to this problem– Zume Pizza.
Zume has transformed how pizza is being delivered. Zume is store-less and has a team of six different robots that assist in making the pizzas. The concept's delivery vehicles are also equipped with pizza ovens, so pizzas are ready for fast delivery. The company's innovative technology ensures that the pizza is always warm and fresh.
Last week, the automated pizza delivery company announced that it has raised an additional $375 million from SoftBank. It looks like the tech-focused pizza brand is about to take off with this massive investment.
Watch out UberEats, Zume could change the food delivery space forever.
Listen to The Barron Report above to learn more.