DAWN FARMS TOP 9 | ISSUE 16| 2020

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. AMAZON'S 'ULTRA-FAST FRESH' SERVICE 

Amazon is looking to merge its current Amazon Fresh and Prime Now services in its latest launch to capture the UK grocery market. Reported to be capable of servicing over 40% of UK households, its ‘Ultra-Fast Fresh’ service involves repurposing nine existing depots which will handle fresh produce and fulfil grocery orders in just a few hours. In lieu of the monthly add-on fee for Amazon’s Prime membership across the UK, it is thought that Amazon Fresh may be offered as a value add, free-of-charge, similarly to what has been in operation in the US. This latest development could aid Amazon in competing against key digital players such as Ocado and other premium delivery services hosted by large supermarkets.

2. YOUNGER GENERATIONS REACT  

TruePublic conducted a survey on Gen-Z and Millennial (16 to 35-year olds) Americans on their post-pandemic lifestyle plans. The study found a greater willingness towards small local gatherings as opposed to distant large crowds. 55% of those polled said they will return to restaurants as soon as restrictions are lifted, compared to the 16% who will wait until long after a vaccine has been issued. Dining out was shown to be the most longed for activity, topping visits to the movies, gym, concerts, festivals and travelling. Online shopping has seen a sharp increase with half of all respondents participating in e-commerce during isolation, with no plans to slow down. 

3. NEW OFFERINGS FUELLED BY CLOSURES

Pret A Manger is keen to launch their new coffee range in supermarkets in April, by way of adapting its business model amid COVID-19. Their latest range of whole and ground coffee beans, which had previously been planned as an end of year launch, was propelled by the global pandemic to increase custom. Pret reopened 10 UK stores near NHS hospitals this past week, with limited menu and takeaway coffee options. Similarly, Côte Brasserie has sped up plans for their new retail range. The range offers chilled versions of signature dishes including Toulouse Sausage and Fish Parmentier, enabling customers to cook at home. With over 3,000 orders on the table to date, the meals have been well-received, costing approximately half the current menu price.

4. GERMANY'S DAY FOR TAKEAWAYS

April 22nd was the first ‘Germany Orders Day’. German citizens were encouraged to order at least one delivery or pick-up meal from their favourite restaurants and to upload a picture to social media with the hashtag #DEUTSCHLANDBESTELLT (Germany Ordered) to create an online buzz for the foodservice campaign. The model is based on the #TheGreatAmericanTakeout campaign in the US. The initiative was launched by the Bundesverband der Systemgastronomie eV (BdS) and PepsiCo to support local restaurateurs and their employees during this crisis and to actively set an example for citizens to stay at home.   

5. BIG CHAINS BACK ON THE MENU

A number of QSR chains have started phasing re-openings of locations across the UK and Ireland this week. The re-openings come with new measures in place to ensure staff and customer safety with contactless transactions and operational social distancing. Burger chain, Five Guys, which kept 13 sites open during the lockdown for delivery, has reopened a further 6 sites throughout London and the UK. Supermac’s in Ireland has also partially re-opened 15 of its 116 sites for drive thru, with Nando's reopening 7 of its kitchens to help feed NHS workers. Other chains to re-open include KFC, Honest Burgers, Costa Coffee and Paul UK.  

6. NESTLE'S NEW 'LIFE CUISINE'

Nestle is launching a new frozen meal brand, Life Cuisine, to provide dinner solutions to suit today’s lifestyles. The new meals cater to all consumers with low-carb, meatless, gluten free and high-protein options, providing 20-25 grams of protein. The low-carb bowls include a Meatlovers cauliflower pizza, Spicy sausage and riced cauliflower, Buffalo style chicken and cauliflower and Creamy chicken and riced cauliflower bowl. The high-protein bowls include a Korean-style barbecue beef, Greek-style chicken, Chicken enchilada and Beef and chorizo taco bowl. Gone are the days of flavourless frozen meals for a quick and convenient dinner.  

7. DOMINO'S DAY-TIME SALES THRIVING

Reporting a notable surge in domestic sales in recent weeks, Domino’s join a lean band of businesses with improved financial sales amid COVID-19. Focussing on takeaway and delivery, they have reported a 7% YoY increase in US sales over four weeks since March 23rd, a strong increase from 1.6% the previous month. Onboarding about 10,000 new staff members in the US to meet demand, they have noticed some unique changes in customer behaviour. With their typical late-night business slowed down significantly, demand has risen at both lunch and dinner time with families now growing weary of home cooking for the family.  

8. JUST EAT PREDICT SHIFT IN DELIVERY

Just Eat UK predicts further sizeable impacts for the delivery channel due to the coronavirus crisis, stating that exclusive operator/aggregator agreements may need to shift strategies going forward. With the company seeing exponential growth the past number of years, the crisis has resulted in record growth to date. With unprecedented applications from restaurants seeking to be onboarded to the platform in the past number of weeks, the pressure is on to speed up the registration process to meet growing demand. The company believes that customers will dictate the pace of economic recovery once restrictions are lifted for businesses and social interactions.  

9. HABITS CAN ADAPT

With so much uncertainty as to what the restaurant scene will look like when it reopens as government restrictions ease, YUM Brands, Habit Burger, have been adapting in the face of a ‘new normal’. To keep customer needs at the forefront of what they do, Habit Burger have developed off-site strategies which include adding pop-up drive-thru lanes at 39 of their restaurants and curbside pickup at a dozen locations. Customers can order food through the brand’s digital channels or at one of their makeshift drive-thrus, all the while experimenting with contactless transactions.

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