Is The Future of Dining Digitization? Allset CEO Thinks So!

We are living in a world with a live and thriving “on-demand” economy.

From having the choice to watch your favorite TV shows on your own time and schedule, to ordering meals and groceries through your mobile phone or online.

Companies seem to have finally figured it out…

Time is of the essence!

People seem to be willing to pay for their precious time to avoid time-consuming, mundane tasks. And with so many efficiencies taking place in different aspects of people’s lives, consumers are getting accustomed to speedy services so they can get back to what’s most important to them.

This phenomenon has us thinking… Is the future of dining digitization?

On this episode of On Foodable Feature, we learn from Stas Matviyenko, CEO and co-founder of Allset—a San Francisco-based application that aims to help restaurants provide a more efficient dining experience to guests who are short for time.

Watch the full interview to learn how this app can help increase a restaurant operation’s bottom line, how the technology integration would look like, and costs associated with the service!

Have Amazon Go and UberEats Become a Threat to Restaurant Operators?

Operators have always had to compete in the market with other concepts, but in today's market, there are a new set of power players ready to steal your customers.

Enter Amazon.

Amazon, like the fast casual segment, is catering to the on-the-go consumer with its cashier-less Amazon Go stores, many of which offer grab-and-go food options. These stores have become the most popular during the workweek, especially at lunchtime.

We recently analyzed the aggressive move Amazon is making in the foodservice industry. Listen to this episode of The Barron Report for more insights on if fast casual restaurants can survive this threat.

But there is one advantage that restaurants, namely fast casual restaurants, have over the Amazon Go stores– many have embraced the plant-based movement. According to Foodable Labs data, today's foodies can't get enough of these plant-based menu items.

Don’t miss our video breaking down this data about the plant-based movement below.

Amazon isn't the only threat operators need to be worried about. There is another shark circling to take a bite out of your business.

Third-party delivery services emerged as a solution that many operators desperately needed.

Since offering delivery has quickly become a guests' expectation, an operator has two options. One is to invest in significant funding to build a delivery program. However, this is easier said than done. It entails creating a system, investing in a platform to process these orders, hiring more staff to handle take-out and delivery orders, and then hiring reliable drivers to deliver these orders.

Or an operator can simply partner with a third-party delivery service, which eliminates most of the headaches. When you consider the operational and logistical challenges of offering delivery, its no wonder that operators across the country have decided to go the route of partnering with a third-party delivery service.

But now this has created a new problem.

One of the most popular delivery services out there is now UberEats. This company has quickly conquered the market. UberEats is currently offering food delivery for 50 percent of the U.S. population and has the lofty goal of serving 70 percent of the U.S. population by the end of this year.

As UberEats becomes more popular, the more the fees increase for the participating restaurants. Could this be correlated to the increase in restaurant closings?

Listen to the podcast above as The Barron Report host Paul Barron explains the data showing that third-party delivery growth may be tied to restaurant failures.

Why East Hampton Leads The Top 50 Sandwich Innovators List

After a quick stint at law school, Hunter Pond decided his true passion laid with the restaurant business.

“I just felt this gravitational pull to the industry and it was strong enough... [that] I dropped out of law school after one semester,” said Pond. “...It was a rough three months trying to convince everybody that this was the right move for me.”

On this episode of The Barron Report, our host, Paul Barron, sits down with Hunter Pond, CEO of East Hampton Sandwich Co. to learn how this concept came to be and made its way to become the top Sandwich Innovator concept from our free Top 50 Sandwich Innovator Report.

East Hampton

“I studied the marketplace and I saw that the key differentiator in all of the fast casual sandwich players out there was the bread,” said Pond.

According to Pond, everything that went in between the breads tasted the same, from the lettuce and tomatoes to the meats.

“I kind of looked at it as a mathematical equation and thought, ‘if we could just figure out a way… to utilize our kitchen to focus on what goes in between the bread, I can outsource the bread baking to local European-style bakeries and that would produce, in theory, a higher quality product,” said Pond.

Hunter Pond wanted East Hampton to be the ingredient artisan of the sandwich category while partnering with a bread artisan to provide best sandwich possible to consumers.

Take a listen to the podcast above to learn more about East Hampton’s beginnings and future plans!

Show Notes

  • 00:51 - Top 50 Sandwich Innovator Report

  • 02:18 - How Hunter Pond Got His Start

  • 05:50 - Inspiration for East Hampton

  • 07:25 - Key Differentiator in the Fast Casual Sandwich Segment

  • 09:13 - Consumer Driver Is Ingredient Quality

  • 10:27 - Quality Beyond The Food

  • 13:03 - Future Plans for East Hampton

  • 15:47 - Sourcing

  • 24:21 - Instagram

  • 27:42 - Hiring & Real Estate Challenges

  • 30:40 - Hunter Pond’s Industry Outlook

About the Report

The free Top 50 Sandwich Innovator Report is based off a sandwich study conducted by our sister company, Foodable Labs. “We put together a study that looked a consumer sentiment around mentions of their favorite sandwiches and then we poured out the shops and concepts that came out on top through our algorithm…,” says Barron. That’s the same algorithm that ranks Foodable’s Top 25 Restaurants in each city, for example.

 
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Meal-Kit Companies Are Gearing Up for Competition or Getting Out

On this episode of The Barron Report, Paul Barron interviews Brittain Ladd, a Supply Chain Management expert and Logistics Consultant for the world of meal kits.  

When the meal kit first came into existence, customers lined up to try this new and innovative system that fulfilled the desire for a high-quality meal without the restaurant price tag. Once the idea gained popularity, meal kit companies began popping up, claiming to have the best meal kit on the market. Slowly but surely, these companies starting shutting down as the market became oversaturated.

“The meal-kit industry is still the wild west. The industry is going through a lot of growing pains...,” says Brittain Ladd.

He believes one of the main reason these companies are unable to stay afloat is they just don’t have enough capital to keep going. One of the biggest challenges for the meal kit is the delivery model and its cost. Known in the restaurant industry as  “the last mile,” these start-ups are struggling to find a location that puts them close enough to a customer in order to keep costs down.

Bigger, established companies like Starbucks or Subway have the most distribution potential with access to resources, real estate, and capital.

Meal kits are a great product–unfortunately, they’re not enough to start a business. Brittain found that many founders of these companies did not have enough business expertise to evolve the idea into a full-fledged business. Consequently, companies faced the harsh reality of high cost-low retention. And although acquisitions may seem like the only light at the end of the tunnel, Brittain sees other opportunities for success.  

“If they’re not going to be acquired, they absolutely should be reaching out to restaurants chains and offering them a branded product or ask them to sell their meal kit exclusively in their store…,” says Ladd. Meal kit companies need to brainstorm a way to close the gap between the product and the consumer.

Listen to this episode of The Barron Report for more insights on the meal kit industry and his recommendations to founders in order to stay afloat!

SHOW NOTES

  • 12:33 Top 5 Companies To Watch

  • 15:34 Restaurants Co-utilizing Space and Meal-kit Delivery System

  • 18:10 Chef’d Biggest Flaw

  • 21:25 Misconceptions Of Success

  • 24:00 Fast Casual New Delivery Systems

  • 30:00 The Future of Meal Kits

  • 33:52 Deliver as Close to the Customer as Possible

  • 00:18 Introductions

  • 01:57 The Demise of Chef'd

  • 02:06 Current Status of the Meal Kit Industry

  • 04:23 Ready-to-eat Meal-Kit Development Ideas

  • 08:08 The Problem with the Meal-kit Industry as a Whole

  • 11:03 Convenience Stores as Distribution Points

 
 

Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours

Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours

hough delivery has proven to be a huge market with the likes of UberEats and Grubhub snatching up restaurant dollars, it has also proven to be extremely expensive for operators and, consequently, for consumers.

According to Forbes, Restaurants could pay anywhere between 11% and 45% commission on each order if they sign up for a delivery service. And while restaurants admit that adding these services improve order numbers and total revenue, these rates are huge. And the delivery fees on the consumer side aren’t tiny either.

Two entrepreneurial brothers based in NYC noticed this issue while scouring for promo codes and coupons to lower their delivery order prices. Wondering, ‘why isn’t there some sort of food delivery happy hour’ Mohamed and Sidi Ahmed Merzouk set out to create this type of app.

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