Did you know that consumers who are members of fast-food chains' loyalty programs outspend non-loyalty members by 5% every month? How fast-food companies are embracing technology to win long term?
interesting look at how technology is transforming the fast food industry. As a human who purposefully does not eat fast food I was unaware of the changes surrounding the industry.
Jill, I too am partially shocked, partially amazed at the wave of innovation taking place in the fast food industry, since I am not a consumer. I believe though, the transformation is not just in fast-food, but it is the entire restaurant industry that is experiencing, though fast -food chains are undeniably seeing an outsized impact as their processes can be easily streamlined with technology due to the nature of the food offerings. What is really interesting, though is the deep engagement they are building on the app with their consumers through loyalty programs. Since you mentioned you are not a fast-food consumer, are you more of a restaurant goer or you cook your own food?
Mostly I cook (and we do not have a microwave) or I go to a few local restaurants (I live in a small community) and know the people who own the restaurants that we frequent. But mostly I cook.
That sounds lovely Jill. I am similar in the sense I too cook and order from a few restaurants where I go to pick it up and take a moment to talk to the owners for the human experience. I am amazed at how a lot of restaurant chains are driving customer engagement and loyalty, yet for me, the biggest missing piece is the human-to-human experience.
I remember the the days when A&W servers brought your order out to your car wearing roller skates. You ordered from a speaker while parked. It little bit like sonic but not quit the same.
The root beer was icy and delicious served in an ice cold glass mug.
Great research into the restaurant industry. I remember seeing Dominos’ rapid stock market rise prior to and during COVID and I didn’t look into it at the time. It makes sense that their efforts to digitise prior to the pandemic helped aid the transitions necessary during the pandemic.
How do you tag/link the ticker symbols for the stocks you mention? It’s a great feature I’ve not seen anywhere else on Substack. I’d love to implement myself.
Thanks Dylan, I would not ever pay attention to restaurant and fast-food chains before a couple of years, as they were sort of the margin squeezed businesses at all times. But, the wave of innovation post pandemic, for ones that were already forward-thinking and the ones that had to play catch up is exciting. Not sure whether I will invest yet though, since valuations look expensive. Do you invest in restaurant stocks?
I don’t currently. I’m always looking for those undervalued assets too and in the restaurant sector and tech especially I currently don’t find too many examples. Looking back to 2022, I wish I’d seen the opportunity in some of the biggest tech declines like Facebook and Netflix, but I’ll wait for the next opportunity rather than rushing in. Patience is key!
The easiest way to solve the problem of home delivery of food and drinks (mobile app ordering to your door) is to adopt the 3rd party delivery companies like the ones in China. Meituan is one of the biggest and best. They deliver on e-bikes with special boxes on the back of their bikes that keep food hot or cold. It would provide lots of jobs for youngsters who are looking for gig work or full-time work with freedoms that a desk job or fast-food job cannot give. Why isn't anyone investing in this business model in America?
I had not heard of Meituan until after the pandemic. Im in Vancouver and they have a sizable portion of third-party deliveries (TPD). Now I see their blue bikes every where.
To your point, more companies are starting to realize that partnering/investing in TPD's is easier than building out TPD capabilities by themselves. For example, Domino's mentioned a week ago that they will partner with Uber Eats moving forward. And they're so confident of their partnership with Uber Eats that they are already forecasting higher sales in 2024. Lots of food companies and grocery stores this year have started partnering with companies like Doordash, Uber Eats to deliver their stuff to their consumers.
I'm really sorry Amrita but I read this and took nothing in. I had the same reaction as to when I watched Super Size Me. I just really want to eat a Big Mac even though I know it's awful for me lol.
Maybe I'll have one when I return home in 3 weeks. No I'm not a loyalty member. Though being in the UK means that I did used to love having a cheeky Nandos (before COVID) and had a card for for that chain of restaurants. What about you? Do you have a favorite?
No, as much as I find all the new technology integrations in restaurant chains fascinating (and sometimes a little too sci-fi), I am more inclined to cooking at home and ordering from local restaurants which do not have loyalty programs as such.
I love home cooking too. My mother still makes the best Sunday Roast Dinners. When I get home, I'll be making my own Sunday Roast, complete with all the trimmings. Cannot bloody wait.
interesting look at how technology is transforming the fast food industry. As a human who purposefully does not eat fast food I was unaware of the changes surrounding the industry.
Jill, I too am partially shocked, partially amazed at the wave of innovation taking place in the fast food industry, since I am not a consumer. I believe though, the transformation is not just in fast-food, but it is the entire restaurant industry that is experiencing, though fast -food chains are undeniably seeing an outsized impact as their processes can be easily streamlined with technology due to the nature of the food offerings. What is really interesting, though is the deep engagement they are building on the app with their consumers through loyalty programs. Since you mentioned you are not a fast-food consumer, are you more of a restaurant goer or you cook your own food?
Mostly I cook (and we do not have a microwave) or I go to a few local restaurants (I live in a small community) and know the people who own the restaurants that we frequent. But mostly I cook.
That sounds lovely Jill. I am similar in the sense I too cook and order from a few restaurants where I go to pick it up and take a moment to talk to the owners for the human experience. I am amazed at how a lot of restaurant chains are driving customer engagement and loyalty, yet for me, the biggest missing piece is the human-to-human experience.
So true. Nothing beats it and it is why I think coaches are changing the way the world is going. The human element. One human helping another.
Here’s an old photo https://www.alamy.com/stock-photo/waitress-on-roller-skates.html
I remember the the days when A&W servers brought your order out to your car wearing roller skates. You ordered from a speaker while parked. It little bit like sonic but not quit the same.
The root beer was icy and delicious served in an ice cold glass mug.
That's quite nostalgic. I think I found a video from somewhere which sounds like what you mentioned: https://www.youtube.com/watch?v=w1OTcen_UPg
Love it! Those are Sonics! SmtThey are still around today! 🤩
What a party!!!
Great research into the restaurant industry. I remember seeing Dominos’ rapid stock market rise prior to and during COVID and I didn’t look into it at the time. It makes sense that their efforts to digitise prior to the pandemic helped aid the transitions necessary during the pandemic.
How do you tag/link the ticker symbols for the stocks you mention? It’s a great feature I’ve not seen anywhere else on Substack. I’d love to implement myself.
Thanks Dylan. And to your previous question - just use cashtags like you do on Twitter to get live ticker symbols.
Thanks Uttam!
Thanks Dylan, I would not ever pay attention to restaurant and fast-food chains before a couple of years, as they were sort of the margin squeezed businesses at all times. But, the wave of innovation post pandemic, for ones that were already forward-thinking and the ones that had to play catch up is exciting. Not sure whether I will invest yet though, since valuations look expensive. Do you invest in restaurant stocks?
I don’t currently. I’m always looking for those undervalued assets too and in the restaurant sector and tech especially I currently don’t find too many examples. Looking back to 2022, I wish I’d seen the opportunity in some of the biggest tech declines like Facebook and Netflix, but I’ll wait for the next opportunity rather than rushing in. Patience is key!
I am fully with you. Stock picking in today's environment has gotten very tricky with so many underlying uncertainties.
You just add a dollar sign before the ticker symbol, like $mcd and it pops up.
Awesome, thank you!
Domo
👍🏽
The easiest way to solve the problem of home delivery of food and drinks (mobile app ordering to your door) is to adopt the 3rd party delivery companies like the ones in China. Meituan is one of the biggest and best. They deliver on e-bikes with special boxes on the back of their bikes that keep food hot or cold. It would provide lots of jobs for youngsters who are looking for gig work or full-time work with freedoms that a desk job or fast-food job cannot give. Why isn't anyone investing in this business model in America?
I had not heard of Meituan until after the pandemic. Im in Vancouver and they have a sizable portion of third-party deliveries (TPD). Now I see their blue bikes every where.
To your point, more companies are starting to realize that partnering/investing in TPD's is easier than building out TPD capabilities by themselves. For example, Domino's mentioned a week ago that they will partner with Uber Eats moving forward. And they're so confident of their partnership with Uber Eats that they are already forecasting higher sales in 2024. Lots of food companies and grocery stores this year have started partnering with companies like Doordash, Uber Eats to deliver their stuff to their consumers.
I'm really sorry Amrita but I read this and took nothing in. I had the same reaction as to when I watched Super Size Me. I just really want to eat a Big Mac even though I know it's awful for me lol.
Well...there is nothing wrong with having a Big Mac once in a while. Are you a loyalty member at any of the fast-food restaurants?
Maybe I'll have one when I return home in 3 weeks. No I'm not a loyalty member. Though being in the UK means that I did used to love having a cheeky Nandos (before COVID) and had a card for for that chain of restaurants. What about you? Do you have a favorite?
No, as much as I find all the new technology integrations in restaurant chains fascinating (and sometimes a little too sci-fi), I am more inclined to cooking at home and ordering from local restaurants which do not have loyalty programs as such.
I love home cooking too. My mother still makes the best Sunday Roast Dinners. When I get home, I'll be making my own Sunday Roast, complete with all the trimmings. Cannot bloody wait.
I learned a lot working at fast food.
👍