Modern Market Launches its Own In-House Delivery Service

As third-party delivery services continue to increase fees and monthly pricing, the more restaurants are investing in developing their own internal delivery platforms.

The fast casual Modern Market is the latest restaurant to unveil its new in-house ordering & delivery platform.

With a focus on catering and larger orders, delivery will be free for orders of $50 or more and the system has a feature that allows a host to invite other participants to add their own individual order to a larger group order.

As we mentioned, Modern Market is one of many to buck the trend of partnering with third-party delivery apps.

Food delivery apps like Uber Eats, Postmates, seamless and DoorDash have become wildly popular in the last few years. These apps make up 40 percent of the 20 most-used apps. Uber Eats made $7.9 billion in gross in 2018, according to Uber's recent IPO prospectus.

These apps offer consumers multiple food options to pick from. Users don't even have to have a restaurant or type of cuisine in mind before using the app, making it a perfect option for the indecisive eater.

From a restaurant standpoint, these apps are an easy solution to the delivery problem. By partnering with a delivery app, you can offer your customers the convenience of delivery without investing in a team of drivers or an expensive platform to process these orders.

"Managing delivery in-house, however, can be difficult and costly too. Hiring drivers, scheduling, making sure orders are fulfilled on time and creating the software that helps tie all these dots together is a large undertaking and can lead to serious issues if executed poorly," writes "Restaurant Dive."

Even though the third-party services have made it easier for brands to offer delivery, they do cut significantly into profits.

As more restaurants partner with third-party delivery apps, the more these companies' can increase fees. Not to mention, a restaurant definitely loses some of the control of these orders. It's up to the third-party's delivery driver to get the food and bring it to the guest in the estimated time frame. So the service aspect and food quality are heavily dependent on the delivery provider, not the restaurant.

So it’s no wonder that more restaurants, like Panera Bread, are shifting away from these services and developing their own.

But as "Restaurant Dive" points out, Modern Market is taking a risk by going the in-house delivery route.

"Another danger that Modern Market will have to consider is whether eschewing popular apps like Uber Eats, which compile delivery offerings from multiple restaurants, will prevent it from being as competitive as possible," writes "Restaurant Dive"

Deciding to go with a third-party delivery or investing in an in-house platform isn't an easy decision.

Learn more about the restaurant’s in-house ordering & delivery platform in the video above!

"Managing delivery in-house, however, can be difficult and costly too. Hiring drivers, scheduling, making sure orders are fulfilled on time and creating the software that helps tie all these dots together is a large undertaking and can lead to serious issues if executed poorly," writes "Restaurant Dive."

Even though the third-party services have made it easier for brands to offer delivery, they do cut significantly into profits.

As more restaurants partner with third-party delivery apps, the more these companies' can increase fees. Not to mention, a restaurant definitely loses some of the control of these orders. It's up to the third-party's delivery driver to get the food and bring it to the guest in the estimated time frame. So the service aspect and food quality are heavily dependent on the delivery provider, not the restaurant.

So it’s no wonder that more restaurants, like Panera Bread, are shifting away from these services and developing their own.

But as "Restaurant Dive" points out, Modern Market is taking a risk by going the in-house delivery route.

"Another danger that Modern Market will have to consider is whether eschewing popular apps like Uber Eats, which compile delivery offerings from multiple restaurants, will prevent it from being as competitive as possible," writes "Restaurant Dive"

Deciding to go with a third-party delivery or investing in an in-house platform isn't an easy decision.

Learn more about the restaurant’s in-house ordering & delivery platform in the video above!

"Managing delivery in-house, however, can be difficult and costly too. Hiring drivers, scheduling, making sure orders are fulfilled on time and creating the software that helps tie all these dots together is a large undertaking and can lead to serious issues if executed poorly," writes "Restaurant Dive."

Even though the third-party services have made it easier for brands to offer delivery, they do cut significantly into profits.

As more restaurants partner with third-party delivery apps, the more these companies' can increase fees. Not to mention, a restaurant definitely loses some of the control of these orders. It's up to the third-party's delivery driver to get the food and bring it to the guest in the estimated time frame. So the service aspect and food quality are heavily dependent on the delivery provider, not the restaurant.

So it’s no wonder that more restaurants, like Panera Bread, are shifting away from these services and developing their own.

But as "Restaurant Dive" points out, Modern Market is taking a risk by going the in-house delivery route.

"Another danger that Modern Market will have to consider is whether eschewing popular apps like Uber Eats, which compile delivery offerings from multiple restaurants, will prevent it from being as competitive as possible," writes "Restaurant Dive"

Deciding to go with a third-party delivery or investing in an in-house platform isn't an easy decision.

Learn more about the restaurant’s in-house ordering & delivery platform in the video above!

Why Millennials are Still Willing to Pay a Premium for Food Delivery

We know that the Gen Y crew is using delivery services in massive numbers. So, what can restaurants do to hold onto sales? Or, better yet, grow those sales that are being driven around in the backseat of a Prius?

In some segments, delivered meals are hovering around 30% of top-line sales versus 10% just two years’ ago. The conversation is real and there are only semantic distinctions between sales within the brick-and-mortar and those that are on the road.

But why?

Looking for insight, go to the source. It’s not always having the answers, but merely asking the right questions.

Shutterstock

Shutterstock

What is it about delivery?

It's all about convenience, duh!

From skipping traffic to getting food from A-list restaurants but avoiding the crowds, leisure time is in the balance.

“I prefer the privacy of eating at home after a stressful day, knowing the bathroom is clean, and the amount of time [delivery] can save me,” says Samantha, a 23-year-old in Portland, OR, when asked about her decision to stay home.

“Delivery apps allow us to see all of our food options in one place without searching through Google maps or Yelp.” Solo diners chime in, as well. “I want to enjoy food from my favorite restaurants without having to leave my apartment. I’ll also [order] on work trips if I’m running low on time,” says Jacqueline, a 26-year-old recent transplant from Houston, TX.

Collective dining is still witnessed in the wild by the ubiquity of sharing plates and communal seating. Some have a better time than most can dream, so they stay home - together.

“[We] don’t have to worry about finding a place that everyone likes. We can all order from different places and it will come right to us. My one friend, she gets Chili’s delivered to her house!” says Abby, a 23-year-old in New Castle, DE.

Shutterstock

Shutterstock

Why not go to a restaurant for a meal?

The digital natives appreciate being unplugged from their surroundings. Interaction, though, is what happens behind a screen. So uninterrupted time matters. Abby jokes, “I don’t like servers constantly bothering me; if I want a refill or if I need something, I’ll let them know. Or I can just get it myself.”

Samantha, chimes in, “Crowds, wait times, not being asked for my ID respectfully - or being asked for it before I even order anything - is super annoying. Sometimes I feel like waiters and waitresses assume that we won't tip well because we are young and we receive poorer service than others.”

“I don’t like dining in [a restaurant] when I don’t want to deal with people or would rather [...] eat at my own place,” says Celine, a 25-year-old in Newark, Delaware.

The cost of dining on site has an expense that can be buffered by avoiding the restaurant. “Two pints of beer in Portland [Oregon] are equal to the cost of a six-pack. So for the cost of having drinks for two, you can buy beer for a week. When you order food in you also have your at-home entertainment, like Netflix or Hulu, which is also a big factor, and you drink whatever you want to,” says Samantha.

Shutterstock

Shutterstock

Are the costs that ride along with the order an issue?

“Costs can be a problem depending on the restaurant, with many online sites such as Uber Eats, GrubHub, and Seamless; they add extra [fees] for delivery and have more out of pocket for a tip, like spending $25 on a $15 meal,” says 23-year-old Jamil.

Samantha adds, “Certain apps do not explicitly tell you the delivery fee price until you are about to click 'buy.' I think they do this so you are too decision fatigued to go back and pick something else, but we always do. Especially if it’s a place we have never tried before.”

Does the charge sway the decision? Apparently not. “I’m content with paying delivery costs, especially if it’s a restaurant I frequent,” says 26-year-old Fortuna.

While some delivery services put quite a pinch on operators to pay 30% of a sale, the customers placing the orders are an adaptable breed. “It’s still usually less than what you would tip a waiter. It’s still more convenient to stay in. I’d rather pay the delivery fee,” says Abby.

Is the trend going to last a thousand years into restaurant life? We only know as much as the tweezer-wielding cooks and the baked-Alaska chefs that redefine what’s hot and what’s not.

Until then, pack it to go and don’t forget to staple the dupe onto the environmentally friendly bag loaded with Brussels sprouts, fish tacos, and quinoa bowls. So, yes, Netflix and Chill is a real thing for millennials and it’s often paired with food delivery.

How Uber Eats Continues to Grow and Lead in the Food Delivery Space

This year's Winter Fancy Food Show was full of innovative specialty products and incubators helping reimagine the future of food. Foodable had the pleasure of joining more than 15 innovators to the Specialty Food Association (SFA) Live Stage where trending industry topics were discussed. The following video features Foodable’s Paul Barron, interviewing Bowie Cheung, Director of Operations for Uber Eats.

Cheung explains how Uber Eats has gone as a lunchtime delivery experiment, partnering with one to two restaurants a day with a curated selection of meals. Now boasting a 24/7 coverage to 70 percent of the U.S. population, as well as, 70 percent of the Canadian population, with over 100,000 restaurants.

“Food delivery is a really complex process, there’s a lot of steps involved,” said Cheung. “In a lot of ways, every single transaction can go wrong, and so you need to be thinking about all audiences and how it comes together, in order to deliver a winning platform.”  

For a restaurant to perform well on a food delivery platform, Cheung advises operators to offer unique products, like the ones featured at the Winter Fancy Food Show. Uber Eats features images of restaurants’ specialty menu items as a way to highlight these options to consumers.

Discover how this rideshare giant continues to lead the food delivery industry by watching the video above.

Video Produced by:

Vanessa Rodriguez

Vanessa Rodriguez

Writer & Producer


VIEW BIO

How Has Amazon Changed Whole Foods?

How Has Amazon Changed Whole Foods?

A year ago, the food industry was forever changed when tech giant Amazon announced it would be acquiring the high-end grocery chain, Whole Foods for $13.7 billion. 

Amazon CEO Jeff Bezos went to great lengths to keep the deal a secret. 

But once the deal was announced last June, grocery chains started to jump on the food delivery train quick in order to compete with the logistics giant. 

Kroger's stock dropped from $31 to $22 at the time of the acquisition and now it trades at around $24. 

Kroger recently invested in the meal kit company Home Chef. Target bought Shipt, a delivery company. Albertsons bought another meal kit company, Plated. All done by grocery rivals to stay competitive with Amazon. 

At the time of the acquisition, Whole Foods same-store sales were declining 1.5 percent, so it's safe to say, the chain needed to be revamped. 

Amazon immediately slashed Whole Food's prices and started offering Amazon Prime members promotions. 

Then Amazon started to sell its products like the Echo in store and started offering free delivery for Prime members. 

Read More

DoorDash is Using Its Technology to Give Back to the Needy

DoorDash is Using Its Technology to Give Back to the Needy

By law, restaurant owners cannot serve leftover food to guests the following day. So, what is a chef or restaurateur to do with all the extra food?

You could always have employees take some home, but what if you still have more after that?

According to “Fast Company,” “An average restaurant might waste 100,000 pounds of foods a year.”

Enter DoorDash. This food delivery company is using its algorithm to help restaurant owners with a surplus of food finding a person to deliver it to the nearest shelter caring for hungry homeless people, for example.

Read More