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.

SFA Live: Food Incubators Keep Tech Out of Food, But In the Manufacturing Processes

SFA Live: Food Incubators Keep Tech Out of Food, But In the Manufacturing Processes

Canopy Foods is a food production studio working as both a manufacturer and also as brand support, assisting with things like distribution and fulfillment.

Elly Truesdell has a ton of experience growing food in the incubator space. She sits on the Board of Canopy Foods, acts as a mentor to FOOD-X and Chobani Food Incubator and acts as an advisor to Agbotic, automated Organic soil greenhouses.

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Beyond Meat's Ethan Brown Credits Millennials, Whole Foods for Success

Beyond Meat's Ethan Brown Credits Millennials, Whole Foods for Success

Ethan Brown created Beyond Meat to solve animal cruelty, environmental degradation, and improve human health.

  • Beyond Meat's Burger and Sausage are in high-demand and now available through Sysco, Whole Foods, and TGI Fridays.

Ethan Brown grew up on a farm. It was this childhood that led him to believe that there had to be a different way to create delicious meats. Using science (and a little time) Brown developed a plant protein burger that has been lauded for its incredible performance as an imitation beef burger. Reviews illustrate nothing less than pure disbelief in tasting the “bleeding” burger.

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Albertsons Will Launch a Digital Marketplace To Better Compete with Amazon

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Shoppers are oftentimes choosing to buy local or start-up brands as opposed to household or national names. Amazon, for example, was able to get ahead at identifying well-performing smaller brands through the Whole Foods acquisition. Some grocers are taking notice.

This is part of the reason why Albertsons decided to launch a digital marketplace for smaller brands.

“The effort comes as retailers more and more are looking to data to help guide their buying decisions,” as reported by “CNBC.”

By having a centralized point where products are easy to find, track and hard data can be collected to determine which brands are performing best it will not only benefit consumers but grocers and smaller brands alike.

“Armed with data from the marketplace, brands can make their case for shelf space in Albertsons' stores, according to “CNBC.” “On the flip side, the data Albertsons has access to through its efforts will help it better understand its customers.”

Vendors who can handle their own shipments will be the first ones able to participate in the marketplace. There’s a possibility that in the future Albertsons may jump in and aid vendors with shipment responsibilities.

This initiative comes after the grocer launched Albertsons Performance Media, “a digital media capability that provides brands the opportunity to use proprietary shopper data to drive sales across Albertsons Companies’ network of more than 2,300 stores in 35 states,” as described in a company press release.

Will Albertson be able to compete with Amazon through their efforts? Looks like they are on the right path to be a strong contender.

To learn more, read “CNBC.”

 

 

HelloFresh Finds Success in U.S. Surpassing Blue Apron in Customer Growth

HelloFresh Finds Success in U.S. Surpassing Blue Apron in Customer Growth

Since the German meal-kit service, HelloFresh, went public late last year, the company more than doubled its customer base in the United States. This is thanks to its wise investment in marketing, which has propelled the business forward surpassing its biggest competitor— Blue Apron.

“HelloFresh’s customer base also grew to 1.5 million globally, making it much bigger than Blue Apron, whose customer base shrank 15 percent to 746,000 due to lowered marketing spending,” as reported by “Recode.” It’s important to note that “HelloFresh includes customers who’ve received free boxes toward its customer total while Blue Apron only counts paying customers,” which obviously adds to its overall customer count.

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