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Where Is The Food Delivery Business Headed?

Food Service industry publication Nation’s Restaurant News (NRN) this week published its latest ranking of food for delivery. For most of us who keep an eye on the Delivery / Fast Food sector, there weren’t many surprises. But I was intrigued by some thoughts that don’t really have to do with the rankings…

BK Whopper Meal - © Burger KingYour typical Burger Meal. What if it was available by delivery (or drive-thru) only?

The NRN report, based on sales volume for foods available by delivery across the U.S. (and probably Canada, too) showed the race as follows:

  1. Pizza
  2. Sandwiches
  3. Chinese / Asian / Indian
  4. Salad
  5. Chicken Wings

No big surprises there. In fact, I don’t think the top five have changed very much in some time. Okay, they occasionally shuffle their positions on the list, but that’s about it. Two points to note: Salads are the most recent Food type to nose their way into the top five. And Sandwiches have pushed Wings down the list. Wings used to be a consistent second- or third-place contender.

But what about the delivery services?

I want to know whether the NRN survey takes into account more than just chain resto sales. What about the little guys; the one-offs and regional chains?

And does the survey, based as it is on sales volume, take into account the volume of orders moved by third-party delivery operations like Uber Eats, Skip The Dishes, Door Dash and Just Eat? These delivery services are popping up (please excuse the hackneyed foodie cliché) like mushrooms after the rain, and I assume – since they all seem to be doing well – that their activities constitute a significant and growing portion of the delivery market.

Where is it all headed?

Sensing a growing demand for delivery services, a  number of established Fast Food chains have been experimenting with delivery services of their own.

In this, I see a potentially powerful partner for the smart phone ordering / paying apps that most of the big chains have launched over the past year or so. Could this signal a move toward a whole new business model for Fast Food, in which no actual dining room is needed? No parking lot? Just a kitchen and a delivery dispatch station? And, maybe, a ‘traditional’ drive-thru lane? And why not look a little farther into the future, when delivery personnel (ie.- drivers) can be eliminated, too, in favour of drones or self-driving delivery ‘pods’?

‘Untouched by human hands’?

Now, add to that the technology, still in its infancy, of Fast Food prep robots, and eliminate the staff (except for one or two maintenance people and ingredient trough fillers) altogether. No more massive payroll. No more income tax paperwork. No more uniforms to supply. No more labour disputes. No more inconsistencies in the product due to human error. No more pilfering.

What sharp business person would ignore the chance to cut costs massively and simplify their process without negatively impacting sales or service?

Finally…

I wonder how customers will react to the new business model? I also wonder if the resto operators will even bother to ask us before they take their next bold step into the future? I’m not sure I, as a customer, want to eventually be considered a ‘necessary evil’ by fast food giants intent on making ‘maximizing return to the shareholders’…

~ Maggie J.