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The Blurring of Foodservice and Retail 2016

The Blurring of Foodservice and Retail 2016

We are on the cusp of unprecedented changes in the grocery retail and foodservice sectors, with some analysts asking whether eating has become the new shopping, as consumer behaviour changes radically.

A number of deep trends such as the rise of clean eating have forced businesses to react to a new reality. Business adaptations include the growth explosion of fresh and fresh prepared in grocers and the rise of new hybrid foodservice/retail stores incorporating the best of both worlds. Already clear rules of engagement and factors for guaranteed success and failures can be identified.

Another deep trend, the digital revolution, has created havoc in the foodservices sector. Breakthrough digital innovations of foodservice players include offering virtual reality apps for bookings and reservation, mobile payments and increasing levels of automation.

The most important digital innovation has been forced on the sector by start-ups on the outside and they all concern delivery and how to make foodservice omnichannel.

There are two types of online disruptors of foodservice. The first are the meal kit providers revolutionising cooking skills and supply chain efficiencies, as exact measurements and quantities should eradicate much food waste, both in the home and out in the fields.

The second group are the delivery marketplaces. Incumbent pureplays act as aggregators and facilitators, which do not offer their own logistics set up. These in turn are disrupted by a new breed (deliveroo, glovo and Ubereats) with venture capitalist backing, which heavily invest in building out a logistics set up to offer to third party restaurants. While we know that the first model works, the jury is still out on the second. Are they biting off more than they can chew?

Looking ahead, already we are seeing online players moving to total vertical integration from farms to kitchens to delivery, but eschewing bricks and mortar restaurants altogether. We are entering the era of the online only restaurant.

But players can react to the deep trends of flexibility, mobility and convenience in different ways too, as the continuing rise of street food innovation, the real march of the makers, demonstrates.

On the back end, in the supply chain, a number of issues will become more important as a consequence, such as improving skills and education for foodservice players to raise productivity and become more nimble and react quicker to new trends from health & wellness to new cuisines. This means a radical new role for wholesalers. There may even be a case for cash & carries to become vertically integrated and become agriculture players.


Executive summary
Data
Data: US spend on foodservice and retail 2016, the foodservice opportunity p18 Data: fresh prepared data, grocers in the US 2016
Retailers - Hyper and supermarket innovations around fresh and fresh prepared
Retail: introduction foodservice and retail 2016
Jumbo: sales figures, omnichannel strategy, Foodmarkt concept
Jumbo: the Breda store, dishes at different stages of preparation
Jumbo: Foodmarkt - the focus on foodservice
Jumbo: NL, sampling and tasting sessions, retail theatre
Jumbo: NL, no non food, 36k footfall per week, Nijmegen up next
E.Leclerc: the pizza and sushi drives, updating and combining the offer, highways
Tesco: Was selling off Giraffe and Harris + Hoole a good idea?
Kroger: ramping up the foodservice proposition and selling through Instacart
Kroger: Main & Vine, follow through with dedicated standalone format
Walmart: updating its food-to-go and in-store dining services
IKEA: the leading non food retailer in foodservice terms
IKEA: the city centre store, smaller but taller, Hamburg Altona
IKEA: City Centre store Hamburg, food service a run away success, a store visit
IKEA: among top 5 of most visited German stores, but basket sizes down
IKEA: foodservice at the heart of US store strategy, seafood sustainability
Foodservice-retail hybrids
Foodservice-retail hybrids: introduction foodservice and retail 2016
Whole Foods: struggling against a multitude of new challengers
Whole Foods: interest in meal kits
Whole Foods: 365, responding to the challenge from Trader Joe’s, Sprouts et al
Whole Foods: 365, first store opened in Silver Lake, LA
Whole Foods: 365, partnering with on trend food service partners and Instacart
Whole Foods: 365, Portland partnering with local foodservice heroes
Eataly: a spectacular hybrid concept, blend of retail, craftsmanship and foodservice
Eataly: the trendsetter, slow food and upmarket
Eataly: how the concept expands internationally, adopting to cultural exceptions
Eataly: exporting Italian food and prestige, innovating on the staples
Eataly: NY flagship and the economics of the Munich store, data
About Life: Australia’s best fresh specialist – incorporating FS and delivery
Kochhaus: a true hybrid and innovator
Waitrose: new thinking in King’s Cross, focus on foodservice
Waitrose: launches sushi bar Sushi Daily
Sushi Daily: Kelly Deli to expand its sushi bars in EU grocers
Sushi Daily: new dim sum concept trialed in France
Deli de Luca: Norway’s convenience-deli hybrid
Foodservice players – How to use online and innovate in restaurants
Introduction: innovations in foodservice
McDonald’s: adding convenience, tablets, kiosks, table service, customization
McDonald’s: all day breakfast in the USA and Australia
McDonald’s: McCafé self-service coffee machines
McDonald’s: the bull versus the bear case, the positive case
McDonald’s: the bull versus the bear case, another Kodak?
Burger King: delivery in house and partnering with deliveroo, Hungryhouse
Hans im Glueck: premiumising burgers in Germany
Hans im Glueck: premiumising burgers in Germany, stats & data
Quick serves: Akindo Sushiro sushi chain’s innovative data use part I
Quick serves: Akindo Sushiro sushi chain’s innovative data use II, IPO?
Quick serves: Itsu delivery app and grocery range
Quick serves: Itsu delivery app and grocery range, latest trading data
Quick serves: Veggie Pret pop-up shop
Le Pain Quotidien: leading fast casual player, app innovation
Panera Bread: Panera 2.0, digitizing the restaurant experience
Panera Bread: Panera 2.0, delivery service roll out sped up
Panera Bread: removing artificial flavours, incredible US$ sales per outlet p75 Pizza Express: updated retail range
Pizza Express: signs up with Deliveroo
Starbucks: the best mobile payments operator in the world
Starbucks: the stats behind the app, driving ATV higher, data insights
Starbucks: reshaping the stores, digital spending, licencing the success?
Starbucks: opens first express store in the UK
Starbucks: Tie-up with Italian boutique bakery, premiumisation
Meal Kits and Delivery – How online is disrupting foodservice
Introduction: online disruption in foodservice
Introduction: demand for higher quality food
Linas Matkasse and the copycats – recipe bag providers tackling delivery costs differently – the subscription solution and unique product
Linas Matkasse: Swedish innovation, the recipe bag provider
Linas Matkasse: curated shopping in online grocery, skills enhancer
Linas Matkasse: innovative loyalty generation, the data
Linas Matkasse: foreign expansion, cooperation with an omnichannel grocer?
Linas Matkasse: latest developments, stretching the offer
Linas Matkasse: selling out? Hercules invests, breaking the SEK1.0 billion barrier
Meal Kits: some background data USA, main points of player differentiation
Blue Apron: 8m meals per month, rethinking the supply chain, eliminating waste
Blue Apron: “selling recipes not ingredients”, pushing unconventional produce
Blue Apron: the big data approach to customisation, adding more choice
Blue Apron: planning meals a year out
Blue Apron: Preparing for the IPO, or to be bought out?
Plated: venture funding, positioning itself as more premium than the competition
Plated: investing in choice mechanics
HelloFresh: explosive revenue growth and widening losses, the data
HelloFresh: Active subscribers and servings delivered, the data
HelloFresh: Rocket’s Global takeaway group, the strategy
HelloFresh: expanding the FC footprint in the US and pulling the IPO
HelloFresh: Strategic Partnership with Jamie Oliver, DC in Germany
Amazon: Meal kits to be launched in autumn in partnership with Tyson Foods
Kochzauber: Lidl buys recipe bag provider Kochzauber
Chilled delivered meals: heat up at home, EatFirst, Bonapeti, Pure Package et al
Online delivery platforms
Just Eat: GMV of £1.7bn, highly profitable, Europe’s largest player
Just Eat: pureplay marketplace operator without a logistics set up
Just Eat: consolidating different orders into a single delivery, big data consulting
Just Eat: online data for offline restaurants, trialing delivery robots
Just Eat: divesting out of Benelux, Takeaway.com takes over
Deliveroo: partnering with premium restaurants, providing the delivery capabilities
Deliveroo: fund raising, the Pizza Express partnership, alcohol deliveries
Deliveroo: investing in its own decentral kitchen spaces – “RooBox”
Deliveroo: the challenge from Uber and Amazon
UberEATS: launches in London, signs up 150 restaurants, undercuts deliveroo
UberEATS: will Uber cab customers migrate to UberEATS?
Amazon: Amazon Restaurants to come to the UK
Amazon: Amazon daily dish
Amazon: taking on and copying Peach
Maple: a fully integrated operation, the online only restaurant
Maple: 30 de-central kitchens across NY, delivery within 15m, 1,100 meals per hour
Postmates: Starbucks and Pop express delivery service
Foodstalls – The street food revolution
Introduction: renewed vibrancy, DIY spirit and social media
London Union: Changing London’s food landscape, looking for shed space
London Union: London Union, the boom in street food
London Union: street food vendors in Trinity Leeds
StreetDots: Street food vendor platform
Enterprise Street Food app: innovative technology
Torvehallerne, Copenhagen: Food service and retail mix
Torvehallerne, Copenhagen: €30,000 per sq m, incredible sales density
Torvehallerne, Copenhagen: reasons behind the success, food service
Torvehallerne, Copenhagen: the inspiration behind Markthal Rotterdam
Technology – Break through innovations
Introduction: innovative technology and restaurant use cases
App based innovations: Starbucks, Levi Roots Caribbean Smokehouse, Google
Delivery innovations: Pizza Hut, Domino’s
Virtual reality innovation: McDonald’s, M Restaurants
Digitising the in store experience: McDonald’s
Automation innovation: Tossed’s self serve kiosks, cashless & automated stores
Automation: Tossed expansion plans and online delivery
Recommendations – Foodservice and retail players
Recommendations: for foodservice operators, go multichannel in store, blur formats
Recommendations: what is the right offer? which are the right trends? Use online
Recommendations: for retailers, offer FS and combine with click & collect
Recommendations: for retailers, use local catchment know how and differentiate
Recommendations: for cash & carry/wholesalers, vertical integration with farms?
Recommendations: for cash & carry/wholesalers, education
Outlook – Foodservice and Retail 2016 and beyond
Sources

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