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FOD: Intelligence Drives Strategy

SeeLevel HX CEO Lisa van Kesteren at 2019 Food on Demand Conference

It’s been just over one week since the Food on Demand Conference, and I am excited about the resounding feedback from the 2019 Food on Demand Study presented during our presentation with Bite Squad’s Scott Leffel.

The biggest takeaway I’ve heard? The need to understand who your customers are and what they expect from you no matter which role you play. This applies whether you are a restaurant, delivery company, packaging company, food provider or you play a role in any other part of the supply chain.

Drivers show no differentiation in fight - 2019 food on demand study

INSIGHTS FOR RESTAURANTS:

In 2019, respondents told us that the fees are a primary driver of their app choice. This is the opposite of 2017, when it came in fourth place.

 

INSIGHTS FOR DELIVERY COMPANIES:

Delivery services are moving quickly down the commodity chain. They are no longer considered to be a luxury, but rather a commodity. This means that price will continue to become more and more important, especially in the absence of a unique differentiator.

 

SeeLevel HX InSights:

It’s not a zero-sum game because the study also shows that consumers are using 2.4 apps on average. There are multiple opportunities to differentiate – it certainly can be price – but there are other spaces in the industry in which you can excel.

If I am a delivery company, I would find a way to differentiate. That looks like talking to the restaurants and the end consumers on my platform and understanding what is important to them and what other benefits I could offer.

The key is, wherever you choose to excel and however you choose to differentiate, you need to be able to deliver. And I can’t emphasize strongly enough that you communicate whatever you have chosen to all stakeholders. This will drive their expectations.

 

If I am a restaurant owner, I am watching this trip down the commodity continuum closely. I know that I am only breaking even at best, and that any war on price can’t come out of my restaurant. So I am very interested in what the delivery services are going to be able to offer me in order to keep me on their platforms. If I can’t ever make money on this, I might decide to get out of the game.

That’s a tough call, though, because I don’t want to lose market share. So for now, I would figure out which factors are most important to me and partner with the delivery company that best reflects the way I run my restaurant.

 

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