Amazon Go to Threaten 70 Billion Fast Casual Segment

On this episode of The Barron Report, Paul Barron analyzes the aggressive move Amazon in making in the foodservice industry.

Amazon plans to open up to 3,000 of its cashier-less Amazon Go convenience stores by the year 2021, according to a recent report from Bloomberg. The tech giant's brick-and-mortar concept Amazon Go currently has three stores open, two in Seattle and one in Chicago.

Jeff Bezos, Chief Executive Officer of Amazon, views eliminating meal-time rushes in busy cities, like Seattle and Chicago, as the best way for Amazon to reinvent the brick-and-mortar retail experience. The concept of a convenience store that sells fresh grab and go foods and a limited grocery selection like the 7-Eleven franchises, for people in a rush poses a threat to meal-kits and fast casual chains alike.

Listen to this episode of The Barron Report for more insights on how Amazon will be continuing to impact the foodservice industry and if fast casual restaurants can survive this threat.

SHOW NOTES

  • 11:52 - A Look at Amazon Prime Statistics

  • 14:36 - What’s Next? Predictions for Amazon and the Food Service Industry

  • 16:39 - Will Fast Casual Survive?

  • 18:59 - Positioning Your Business to Create a Loyal Guest

  • 01:20 - Amazon’s Disruption in the Retail Industry with Amazon Prime

  • 02:54 - Amazon Go Store Strategy: Are They After Fast Casual?

  • 05:34 - What about Whole Foods?

  • 07:16 - Amazon’s Impact on the Food Ecosystem and Fast Casual

  • 08:44 - Amazon’s Capability to Connect to the Guest


 
 

Also check out the video below to watch a recent episode of The Barron Report to learn more about the Amazon Go stores and how these cashier-less stores are changing these retail space forever.

Amazon Crashes on Prime Day, Loses Millions in Sales

Amazon Crashes on Prime Day, Loses Millions in Sales

This year's highly anticipated Amazon Prime day did not start off as planned. 

On July 16 at 3 pm, the time the promotions were supposed to start, customers were unable to get on the site and instead saw a 404 error on the website. 

"Some links on the main page advertising Prime Day deals went nowhere but back to the page. Pages within Amazon's mobile app were also affected, showing an error message with a photo of a dog," writes "Business Insider." "Individual product pages didn't appear to be affected and were still functional, though customers reported issues with adding items to their carts. Some customers also said that their shopping carts would completely empty when they were adding or removing items from it."

Amazon issued a statement at 4:59 p.m. saying "some customers are having difficulty shopping, and we're working to resolve this issue quickly."

Customers that were experiencing difficulty on the Amazon website, went to social media networks like Twitter to complain and some have even threatened to cancel their Amazon Prime membership. 

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First Amazon Go Grocery Store Opens to Public in Seattle

First Amazon Go Grocery Store Opens to Public in Seattle

Amazon, Monday, opened their the first brick-and-mortar grocery store where no physical checkouts are required. Amazon Go has been in beta-testing with Amazon employees since 2016 and has just opened to the public. It was expected to open to the public more quickly but there were some teething problems with correctly identifying shoppers of similar body types - and children moving items to the wrong places on shelves, according to an Amazon insider.

Transactions in the store are all done digitally using Amazon’s “Just Walk Out Technology.” It uses hundreds of ceiling-mounted cameras and electronic sensors to identify each customer and track the items they select while walking through the store. Purchases are then billed to customers' credit cards when they leave the store.

Back in 2016, Foodable covered Amazon’s announcement of this concept and our experts chimed in on how these futuristic grocery stores could impact restaurant operators and their businesses.

“First and foremost, what a great wakeup call for our industry. If anyone in our industry is taking anything for granted, what a gift Amazon is providing us...Amazon knows how to deliver experience,” restaurant brand coach Rudy Miick, CMC, MA, said.

“In today’s market, people like convenience. Just like any business that offers a competitive product, there will be some loss of market share to restaurants. However, this is a great opportunity to model the process and fit it to your concept,” Andrew Carlson, consultant and author of Customer Service Is the Bottom Line, said.

The store offers pre-made meals, consumer packaged goods, Amazon Fresh meal kits, alcoholic and non-alcoholic beverages, and a bunch of average grocery items. As of now, Amazon has not said if it will be opening more Go stores, which are separate from the Whole Foods chain that it bought last year for $13.7 billion. Only time will tell what's next.

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Watch Foodable Shows on Most Downloaded App at Launch on AppleTV

Watch Foodable Shows on Most Downloaded App at Launch on AppleTV

This week, news about the Amazon Prime Video app becoming the most-downloaded app in the first week of its launch on Apple TV were announced.

After Apple and Amazon settled their differences earlier this year, Amazon began to sell the Apple TV on their retail website and Apple finally launched the Amazon Prime Video app in early December.

“TechCrunch” confirmed the news, which “was first reported by the site BestAppleTV.com.”

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Is Amazon Intruding or Pushing the Fast-Food Industry Forward?

Is Amazon Intruding or Pushing the Fast-Food Industry Forward?

The fast-food industry is lagging behind and it knows it.

On the other hand, Amazon seems to be moving light speeds ahead in contrast to its food competitors.

Recently, Foodable reported on how Amazon is a brand that is “plugged in” as opposed to the rest of the restaurant industry. Foodable Labs, our sister data company, predicted the Seattle-based company will absorb 25 percent of restaurant visits by the year 2020.

As the logistics, online-retail giant moves forward with its new projects and initiatives, it moves the company closer towards their food logistics goals.

As reported by “Business Insider,” "Amazon is going to try and figure out ... how to use their customer engagement, customer knowledge, and distributions to encroach on anyone's business they can," said Sonic CEO Cliff Hudson.

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