Delivery Co-Ops Could Have a Moment
The concept of restaurant operators banding together to create their own delivery co-ops brings me back to the earliest days of FOD, when several restaurant execs told me they would rather be hog-tied than pay 20-30 percent over the long term. Seeing a few recent stories on the topic shows it still has supporters, whether or not it has legs.
Covered by Kai Ryssdal on Marketplace, Iowa pizza restaurateur Jon Sewell launched LoCo Co-ops to spread the technology and knowledge to start homegrown delivery co-ops to other markets, at a cost that he said is “well under 10 percent” with claims of better customer service than the national apps.
Sewell said his restaurant was using a service called OrderUp that had a great reputation in town, “but in 2017, Grubhub bought OrderUp, which basically gave them a monopoly in Iowa City. That’s when they doubled all the commission rates and fired all the customer staff. That’s what stimulated us to say, ‘No, that doesn’t work in our community. We need to have a better alternative.’”
The Nevada Current reported on LoCo coming to Las Vegas and interviewed Kristen Corral, owner of Tacotarian, who said she helped found LoCo’s Nevada outpost on the belief that restaurant delivery “should be a public utility for restaurant owners.” She paid $7,500 in delivery fees during one month in 2020—double her rent in the Arts District.
Co-ops will face countless headwinds competing with entrenched delivery providers that have become household names, but it’s inspiring to see restaurant operators giving collectivism a shot at such a prime moment.
— Tom Kaiser, Editor
tkaiser@foodondemandnews.com
|
|
Free Webinar
HOW TO INCREASE YOUR FOOD DELIVERY ORDERS WITH THE RIGHT VISUALS
|
|
|
Stand out from a buffet of online dining options with exceptional visual content! Images (and other types of visual content) trigger our emotions, help us retain information, build trust in a company and make communication as immediate as possible. So when hungry customers browse the web for food delivery options, they are more likely to be drawn to platforms that feature accurate, descriptive, mouth-watering pictures illustrating your menu items. Find out how the perfect visuals can help your food delivery company convert more and increase your number of orders.
Click here to sign up.
|
|
|
NCR’s Hospitality on Regaining ‘Intimacy’ with Customers
After losing its “intimacy” with customers in recent years, NCR, the largest point-of-sale provider, says it has regained that customer-centric focus and is positioned to outcompete the Toasts, Lightspeeds and Squares of the global POS armada. Read more.
|
|
Gig-Work Legal Shield Prop 22 Deemed ‘Unconstitutional’
The landmark Proposition 22 that carved out exceptions to California’s AB5 legislation has been deemed unconstitutional by a California judge. Read more.
|
|
|
Automated Pizza, Salads Creep Closer to Mainstream
Automated pizza-making company Picnic just announced its devices are now available for commercial use. Piestro, another robotic pizza-making device, is partnering with pizza purveyor 800 Degrees. And Sweetgreen just announced it would acquire Boston-based food-automation company Spyce. Read more.
|
|
C3 Lands Additional $10M Investment
Global food tech platform C3 announced a $10 million strategic investment from TriArtisan Capital Advisors and its investors, whose portfolio include brands like TGI Fridays, PF Chang’s and Hooters. Read more.
|
|
|
Nextbite Launches Three Breakfast Concepts
Breakfast is becoming a bigger deal in the Nextbite universe, as the virtual restaurant provider launches three new delivery-only breakfast concepts. The menu items will range from traditional and gourmet breakfast sandwiches to chicken and waffles and breakfast burritos. Read more.
|
|
|
|
|
|
Episode 18: The Delivery vs. Dine-In Challenge +
David Bloom of Capriotti's
|
|
|
In the 18th episode of the Food On Demand Podcast, hosts Tom and Nick talk with David Bloom, Chief Development and Operating Officer for Capriotti’s and Wing Zone, pictured right. They also cover DoorDash’s new Full Service model that allows restaurants to outsource everything—even the cooking—at its ghost kitchens, WoodSpoon landing $14 million in funding, and the Food On Demand team’s delivery price inflation test comparing the cost of delivery to dining in.
|
|
|
|
This episode is sponsored by Omnivore.
|
|
|
ANNUAL CONFERENCE NOVEMBER 10-12
|
|
|
Register Today for the Live Event
|
|
Gain vital market and operating insights by attending high-level workshops and networking with the largest gathering of industry experts at the Food On Demand Conference.
|
|
|
|
|
