As restaurants continue to struggle with the high fees charged by third-party delivery services, major delivery services continue to operate at a loss, and consumers become increasingly frustrated with the high fees associated with their order, the Food delivery industry is strained.
For restaurants, one way to make the model more cost effective is to charge consumers more for their delivery order. While consumers consistently declare that they are willing to pay more for their food for the convenience of having it on their doorstep, conflicts can arise when consumers feel cheated, burdened with charges they did not know they were doing. ‘they were paying.
Chick-fil-A, for its part, is being sued for “misleading and deceptive” menu prices in delivery markets, Food & Wine reported on Monday (October 11th). The plaintiffs, two New York-area customers, allege that despite the ad for a fixed delivery charge, the restaurant actually inflated menu prices without communicating this information to consumers.
“Since the start of the COVID-19 pandemic, Chick-fil-A has aggressively embarked on the food delivery business, exploiting an opportunity presented by Americans’ reduced willingness to leave their homes,” alleges the lawsuit, according to a file obtained by UniCourt. “Chick-fil-A omits and withholds important facts about the Chick-fil-A delivery service, never once informing consumers in any disclosure, at any time, that use of the delivery service causes a substantial increase in food prices. “
Earlier this month in California, Gov. Gavin Newsom approved a bill requiring third-party delivery services like DoorDash and Uber Eats to show consumers a detailed breakdown of costs and charges.
Related News: California Bill Requiring Transparency In Food Delivery Charges Awaiting Governor’s Approval
Del Taco Attracts New Loyalty Users With Program Update
A month after launching its new loyalty app, Del Taco, a California-based Mexican-style quick-service restaurant (QSR) chain with around 600 restaurants, shared on Thursday (October 14) that the app is bringing great success. part of new consumers in the fold, those who had never interacted with the previous loyalty program of the chain.
“40% of members entering Del Yeah! The rewards are actually new members, ”said John D. Cappasola, Jr., president and CEO of the company, during a call with analysts. “(This) testifies to the motivation around this application which is not only a driver of offers. There are reasons to get involved with the brand and to engage with the brand…. (And) them loyalty levels are a big part of it.
Searched for the Delivering On Restaurant Rewards report from PYMNTS, created in collaboration with Paytronix, finds that 58% of QSR customers want to interact with loyalty programs through a restaurant’s app and that 74% of QSR customers want to be rewarded for the value of their spending.
See also: Two-thirds of consumers find restaurant rewards impersonal
For Del Taco, the program also offers valuable insight into consumer preferences and behaviors.
“Del Yeah! Rewards also allows us to unlock our customer data to drive personalized and valued experiences by delivering unique messages and offers in the way members are most apt to respond, ”said Cappasola.
Caribou Coffee Takes On Dunkin ‘With Launch Of Domestic Franchise Program
As a member of the recently formed Panera brands, the fast-paced, laid-back mega-group of Panera Bread, Caribou Coffee and Einstein Bros. brands. Bagels from JAB Holding Company, Caribou Coffee is already undergoing significant structural changes. On Monday, the company announced that the chain is now opening franchise opportunities in the United States. Previously, all of its national sites were managed by one company.
This will put the brand, which currently operates 314 company-owned locations nationwide and 135 nationally licensed locations, in competition with Dunkin ‘, the country’s largest coffee franchisor, even beyond the competition that already exists between brands for consumer spending.
The brand’s drive-thru concept, Caribou Cabin, which launched in 2019, is at the heart of the value proposition for franchisees. The drive-thru channel has become more popular with coffee drinkers since the start of the pandemic. In fact, the National Coffee Association said earlier this year that steering wheel controls have increased by 30% since the start of 2020.
“With its strong business model and new strengths like the new drive-thru-focused Caribou cabin, Caribou Coffee is delivering an exciting new vehicle to potential franchisees while meeting their customers’ desire for convenience,” said Niren Chaudhary, CEO from Panera Brands, a statement.
McDonald’s Enters Consumer Digital Ordering With McPlant Burger
McDonald’s announced Thursday (October 14) that it is testing a plant-based burger, the McPlant, in partnership with Beyond Meat. The test follows herbal option launches from the chain’s major competitors, with the herbal market opportunity increasing each year. A report from ResearchAndMarkets.com estimates that the market will grow by around 10% each year from 2020 to 2027.
Since the audience for plant-based offerings is young, with Gen Z and Millennials significantly more likely than their older counterparts to opt for meatless meals, launches such as these offer catering brands an opportunity to expand their digital customer base. After all, PYMNTS research from our study “The Bring-It-to-Me Economy”, created in collaboration withFiserv Carat, finds that about three-quarters of Gen Z and Millennials order food online, compared to just two-thirds of Gen Xers and just 42% of baby boomers and seniors.
More Details: Bring It On Me Economy Grows As Consumers Embrace Home-Centered Lifestyles
“We’re always testing new items and flavors, and this particular test will help us understand how delivering a burger with a plant-based patty impacts our restaurant kitchens,” the McDonald’s announcement said.
US testing of this menu item will begin in early November. McDonald’s has already started testing it in Sweden, Denmark, the Netherlands, Austria and the UK