GrubHub Partners With Yelp to Offer Delivery From More than 80,000 Restaurants

GrubHub Partners With Yelp to Offer Delivery From More than 80,000 Restaurants

According to a report from the Wall Street Journal, GrubHub and Yelp have expanded their partnership. GrubHub delivery will now be made available from twice as many restaurants on the Yelp website bringing the total number of restaurants to more than 80,000.

This move may prove to be extremely beneficial for GrubHub who has been feeling tension with the many food delivery companies like UberEats and DoorDash trying to grab the top spot.

This partnership with Yelp is actually the last step in what has been a major move for GrubHub. The food delivery giant acquired Eat24 for $288 million. This partnership is aimed at not only garnering more market visibility but also increasing convenience and cutting delivery fees and delivery time. Digital Trends says ”if multiple orders are generated through Yelp, drivers will be able to make multiple deliveries on a single trip.”

“I see a point where we could conceivably have extremely low if not free delivery for consumers,” GrubHub co-founder and Chief Executive Officer Matt Maloney told The Wall Street Journal.

Yelp is adding to the pot as well by trying to up their game as customer’s first stop before a dining experience. With this new focus on delivery, Yelp just released a list of the top-ranked restaurants on their site that offer delivery through their app.

With even super-cheap restaurants like McDonald’s and Taco Bell adding themselves to the delivery game, delivery companies will need to figure out how to get delivery prices below the price of a dollar menu meal if they want to scrape up that market.  

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HelloFresh and Grubhub Snatch Up Restaurant Customers

HelloFresh and Grubhub Snatch Up Restaurant Customers

Consumers today are looking to save time, money, and calories. And in trying to do that, it has completely changed how and where they eat. According to data from the USDA, at least 50% of U.S. food expenditures in 2014 we’re allocated towards food away from home. That number has steadily increased since they began collecting the data in 1929.

Additional USDA data shows that 62 percent of millennials surveyed in December 2017 reported purchasing prepared deli food, carry-out, delivery, or fast food within the last seven days.

Mostly fueled by trends to eat healthier meals in shorter amounts of time, consumers are more than willing to fork over some extra cash for convenience and time efficiency.

According to business insider, there is a massive unfulfilled market opportunity here.

“As of 2015, about $210 billion worth of food is ordered for delivery or takeout on an annual basis in the U.S., according to Morgan Stanley research. But two of the industry leaders, GrubHub/Seamless and Eat24, generated a combined $2.6 billion in food sales last year. This means the market is underpenetrated but massive, which will incentivize continued competition and, potentially, an influx of new entrants.”

Meanwhile, the meal kit industry has seen exactly that sort of influx. The meal kit industry was dominated by Blue Apron just one year ago. Now, though Blue Apron has managed to hold on to its lead internationally, their market share has more dropped more than 17 percent and now Hello Fresh has surpassed them as the largest meal kit company in the US. And other competitors like Home Chef and Sunbasket are now gobbling up those extra dollars.

But the overall popularity of meal kits is dipping. The Wall Street Journal recently reported that investors have all but abandoned the meal kits space. And data from Foodable Labs shows that all the top meal kit brands are showing decreases in their consumer sentiment ratings.

Still, the meal kit industry is a 1.5 billion dollar industry, and certain segments of our industry are heavily impacted by consumer crossover with meal kits and groceraunts. For example, 34.7% of fast casual customers also use meal kits or groceraunts, making them a direct competitor. QSR’s, on the other hand, are safest with only 12.3% crossover.

Check out the episode above and let us know what other data you want to see!

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Yelp Analysis Shows Strong Consumer Preference for Independent Restaurants

Yelp Analysis Shows Strong Consumer Preference for Independent Restaurants

Tuesday, Yelp released the second edition of their Local Economic Outlook, ranking U.S. metro areas by the pace of growth in their local-business population. Using their deep data stores, Yelp analyzed review ratings for chain and independent restaurants in the 50 metro areas included in the outlook.

The research indicates a shift in consumer perceptions of restaurants. Citing the “celebrity-chef” movement, the data shows a tremendous rise in in independent restaurants over the last 5 years.

Comparatively, fast food restaurants have seen a notable decrease in average ratings, about 16% between 2012 and 2017.

While chain restaurants across the country encounter increasingly choosy diners, independent fast-food and fast-casual restaurants have seen a continued increase in average ratings, improving by 7 percent in the last five years. Ratings for casual-dining chain restaurants held up better, unchanged on average, though they lagged behind their independent competitors, which gained a quarter of a rating point between 2012 and 2017.

“Historically, chain growth has outpaced the broader restaurant industry growth, but in the past three years we’ve actually seen independents and smaller operators outperform chains,” said Dave Henkes, Senior Principal at food industry research firm, Technomic. “It’s clear that consumers are voting with their dollars and are rewarding those restaurants that provide a resonating point of difference in the overall experience.”

It’s important to note that while many people might associate the phrases “fast food” and “fast casual” with chain restaurants, many restaurants that provide that type of experience are independent. The data shows that the type of restaurant (fast food, fast-casual, or casual) is much less important than their appearance as either a chain or independant restaurant.

Visit “Yelp” to see how the 50 major U.S. metro areas compare in local-business success throughout 2017 including which business categories are growing fastest, how restaurants compare and how diners in the metro rate chains and independent restaurants.

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Why is McDonald's So Active Right Now?

Why is McDonald's So Active Right Now?
  • McDonald's recently launched its new tiered dollar menu, promoting it with funny, relatable ads.

  • The new $1 $2 $3 Dollar Menu is just one of the many ways McDonald's is trying to win back customers.

 

Competitors like Wendy's and Taco Bell heard about the move by McDonald's and, in anticipation, began promoting their own dollar menus. Read more about the Golden Arches' strategy here.

On this episode of On Foodable Weekly: Industry Pulse, we're taking a look at McDonald's new $1 $2 $3 Dollar Menu. The menu is just one of the many ways McDonald's is trying to win back millions of customer visits. The fast-food chain has also renovated a number of locations and will be launching their new fresh beef burgers nationwide later this year.

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McDonald's Is Winning With the Cannabis Consumer

McDonald's Is Winning With the Cannabis Consumer

Cannabis is penetrating into the food industry one way or another.

Fine-dine cooking with marijuana is a topic Foodable recently touched on in an interview with one of the top cannabis chefs in America— Chef Jeff, dubbed the “Julia Child of Weed.”

But as the cannabis business continues to grow at a rapid pace, more researchers analyze how and in what ways is the multi-billion dollar industry impacting the economy. One way to do so is by monitoring cannabis users’ consumer habits.

Fast-food is the sector analyzed in a recent report that is part of a series of research market snapshots called “Cannabis Freakonomics.”

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