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The Spoon

Daily news and analysis about the food tech revolution

Coronavirus

Experiential Retailer b8ta Furloughs Workforce, Cuts Corporate Staff Due to Coronavirus

With the exception of grocery, the COVID-19 crisis has hit every retail sector hard as consumers cut back and, in many cases, are forced to stay in due to mandatory shelter-in-place orders.

One of the early casualties of the tsunami is b8ta. The experiential retailer announced this week it would furlough its entire retail workforce and cut its corporate staff in an attempt to weather the storm brought on by coronavirus. The moves, announced in a letter to employees by company CEO Vibhu Norby, were effective last Friday.

In his letter, Norby said furloughed store employees would get paid through March 28 and receive a $1,000 relief checks (part-time employees get $500). Norby also said those corporate employees not laid off would get mandatory pay cuts.

The company’s business consists of both its own flagship retail stores (approximately 25 at the end of 2019) as well as its “retail-as-a-service” platform that powers experiential retail experiences for other retailers such as Macy’s (an investor) and the relaunched Toys R Us.

I’ve always been intrigued by b8ta’s take on retail, which utilizes a model that essentially rents space to product companies (similar to a consignment model) and provides brands granular data about retail customer interactions with their products. Products are often kitchen or food related, such as the Aveine wine aerator or the Hurom slow juicer, and companies such as Thermomix have sometimes used b8ta storefronts as a way to showcase product features and get user feedback.

Norby indicated that b8ta hopes to reopen stores in coming months and welcome back retail employees. The company raised $50 million in funding late last year, so it would appear they have enough of a war chest to weather the coronavirus storm. It’s kinda of a bummer they couldn’t use some of that cash to continue paying its employees past March 28, but it appears the company’s focus is on ensuring its long-term survival by slowing its burn rate through the crisis.

Beyond payroll, the company no doubt has to continue rent payments in upscale retail locations in places such as New York City, San Francisco and Seattle. As well, many of the products sold at b8ta’s own stores are higher-priced, discretionary products, so the company is likely forecasting decreased demand well into 2021 as most consumers deal with financial uncertainty due to the economic fallout from COVID-19.

In a piece of related news, company President and cofounder Phillip Raub announced he would step away from a full-time role at b8ta. He hinted that he has something new he is working on and would share details soon.

Minnow Adds Disinfecting UV Lights to No-Contact Food Pickup Pods

Earlier this month, Minnow announced that it had installed its IoT-connected cubbies for food deliveries in seven locations in Portland, Oregon. In response to the COVID-19 pandemic, the Seattle-based startup just announced it will be taking extra steps to make its Pickup Pods safer and contaminant-free.

Chiefly, the company is adding UV lights to the interior of its cubbies to sterilize any food containers placed inside. However, we should note, while UV light does have the ability to kill some bacteria and viruses, it’s not 100 percent proven that it protects against the coronavirus.

Contactless food pickup, like Minnow offers, is already useful in a time when we’re trying to avoid touching things as much as possible (including our faces). For those who aren’t familiar with their technology: Minnow installs their pods, which contain 20 individual insulated cubbies, in public spaces like office buildings, apartments, and universities. Residents can pre-order lunch from a rotating menu of local restaurants via text or through the mobile web, then Minnow batches the orders and has them delivered all at once by one of their drivers.

The driver places each meal in an individual cubby and texts folks when their order is ready. Customers can then tap a hyperlink on their smart phone (no need to touch a screen on the actual Pod) to open the cubby’s automatic doors and grab their lunch.

According to an email from the company, Minnow has processed 4,000 food orders thus far. That’s significant, but currently most of Minnow’s pods are in office buildings. At a time when more and more people are being directed to work from home, that’s not exactly good for business.

However, a Minnow representative told me that the company is currently in talks with residential buildings about installing pods, which can be set up in as little as an hour and are totally turnkey (the company provides hardware, software, and support). Spaces lease them out for a monthly fee.

If folks continue to stay at home — and at this point, it looks like we’re going to be social distancing for a while — I could see services like Minnow’s pods gaining a foothold in apartment buildings as resident managers grow weary of coordinating delivery drivers coming in and out of the building.

There’s an obvious appeal for consumers. Even if delivery drivers drop off food at your doorstep, you still don’t know for sure if the container is sanitary, or how many people touched it on its way to your home. If you live in an apartment building, where you have to leave your home and go outside to get your order, that adds even more opportunities for contamination. Placing food in pods like Minnow’s, where they’re promptly disinfected by UV light, adds an extra layer of security that I imagine many people would welcome.

This might all sound over the top right now, especially since people are still allowed to go out and grocery shop and do takeout from their local restaurants (which you should do if you can!) But we don’t know how long COVID-19 will last. If quarantine measures escalate and paranoia around contamination grows, contactless and sanitizing tech like Minnow’s could be a helpful option for those hungry for food delivery.

The Food Tech Show: Instacarting Parents & Baking Bread Might be Our New Normal

As the pandemic rolls on and we stay at home while social distancing, many of us are exploring new ways of doing things.

For some this may mean Instacarting one’s parents. For others, it may mean making sourdough bread and showing off your efforts on Instagram.

The Spoon crew all dialed in from their remote locations to discuss how our behavior has changed as well as the continuing fallout of COVID-19 on restaurants. We also discuss the surge in hiring in the grocery sector as people shift their behavior to online shopping and whether or not COVID-19 could mean a comeback for meal kits.

As always, you can listen to the Food Tech Show on Apple Podcasts, Spotify or wherever you get podcasts. You can also download it direct to your device or just click play below.

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Sourdough Bread is Taking over Instagram Right Now

If you’ve scrolled through Instagram lately, you’ve probably noticed a sudden uptick in people posting about their #quarantinelife baked goods. But one in particular has people Insta-bragging like never before: sourdough bread.

Really, it makes so much sense that people are hopping on the sourdough bread train. Making it requires very few inputs (just flour and water), but also demands frequent care throughout a day — the kneading, proofing, and baking process takes around 24 hours total. But the end results are utterly delicious, even for inexperienced bakers. And bonus, you don’t have to go to the grocery store and risk contamination to get your bread!

As with many things in our digitally connected life — like workouts, beauty tutorials, and more — people feel the need to share their baking exploits on Instagram. In fact there are 2.7 million posts tagged #sourdough on the ‘gram right now. The fact that NYT Cooking’s lead newsletter story this week was about making your own sourdough means that we’ll likely be seeing a lot more #artisanbread posts coming our way over the next few weeks.

My first attempt at sourdough bread. [Photo: Catherine Lamb]

Being a good millennial, I had to try my hand at sourdough this week. I’d gotten a starter from a friend which had laid dormant in my fridge. A few days of feeding later, plus an intensive 24 hours of kneading, resting, and proofing near the heater in my bedroom, and I had two pretty good loaves of sourdough!

Did I share it on Instagram? Of course I did. And I got comments back of people sending me their own photos of sourdough, focaccia, pretzels, and other yeasty endeavors. One friend and I decided that we would do a loaf exchange for our next round of sourdough baking. Another asked me to drop off some of my starter so she could start baking, too.

Unfortunately, my sourdough ambitions are on hold at the moment since every grocery store I’ve visited over the past few days has been 100 percent out of flour. Which just goes to show — if social media didn’t illustrate the point enough already — that we’re all baking to relieve stress and feed our loved ones. Because when everything seems uncertain and sometimes downright scary, it’s reassuring to care for something else — even if that something else is just a sourdough starter.

Just don’t forget to post your results on Instagram. #Sourdough #naturallyleavened #wildyeast

Want to Help Restaurants Survive? The National Restaurant Association Suggests Just “Buy a Meal”

With restaurants struggling as they’re forced to adjust to the new restrictions in place to fight COVID-19, you, like us, are probably wondering “How can I help?”

There are almost too many options about where to put your dollars to aid struggling foodservice locations. You can buy gift cards, virtually tip your bartender, or donate to relief funds. For places that are still open, you can also order takeout or delivery, either from the restaurant themselves or through a third-party site like DoorDash or Grubhub.

So where’s the best place to put your dollars? That’s the question I posed over the phone this week to Vanessa Sink, Media Relations Director of the National Restaurant Association. According to Sink, the answer is simple: buy a meal.

“Restaurants still want to cook for us,” Sink said. “They’re safe, and they’re there to make sure that we’re getting good food and enjoying it.” If you can, order pick-up or for delivery directly through the restaurant. That way, they don’t have to pay super-high fees to third-party delivery services, which, despite their claims, are not cutting restaurants much slack right now.

Restaurants are trying desperately to get the word out about the importance of ordering to-go meals, while we’re still permitted to do so. Foodservice establishments have actually banded together to launch a new initiative called The Great American Takeout (#TheGreatAmericanTakeout on Twitter) to motivate people to order more to-go meals from their local restaurants. It’s launching today.

Maybe you don’t feel comfortable ordering takeout or delivery from restaurants at this time. And that’s okay. “We support whatever people can do,” Sink said. You can still donate to relief funds for restaurant workers and bartenders — there’s a comprehensive list right here. You can follow the New Yorker’s Helen Rosner’s advice and call your elected officials to demand government relief for restaurants and foodservice workers. If your favorite restaurants are selling gift cards, you can buy one for when this all blows over (but be aware there’s always a risk that the restaurant won’t return to full service).

Or you can see how chefs are getting creative in your area. In Seattle Eric Rivera is offering the sale of pantry items made in his restaurant as well as pick-up meals. Celebrity chef Sean Brock is doing live, private cooking classes. Famed restauranteur Hugh Acheson is offering contracts to come and cook at your house when the COVID-19 quarantine period is over.

Finally, no matter what you do, tip well. Hopefully together we can help more restaurants come out the other side.

Prioritizing Takeout is a Big Takeaway From Wahoo’s Fish Taco’s COVID-19 Response

As restaurants temporarily close dining rooms and many struggle to stay afloat, we’re starting to hear from specific businesses about their strategies for dealing with a world where “open for business” means being able to take and fulfill off-premises orders and no one is clear on when they’ll be able to once again open the dining room.  

One such business is Wahoo’s Fish Tacos. Wahoo’s is based in Southern California and currently operates about 60 restaurants across several U.S. states (as well as a location in Japan). The chain was founded by Chinese-Brazilian brothers Wing Lam and Ed and Mingo Lee back in 1988 as a way to bring their different cultures’ culinary traditions and styles together into a single restaurant.

Being around for 30-plus years means the brothers have seen their share of ups and downs in the restaurant industry, which so far is helping them better navigate the sudden and abrupt shift to off-premises business resulting from the spread of coronavirus. 

“We started delivery a week ago because we knew that was coming,” Ed Lee said of the mass restaurant closures that started last week.

During a phone call with me last week, he and Wing Lam explained that Wahoo’s has dealt with having to temporarily close before (after the 9/11 attacks), but that what we’re dealing with now is far more severe. “This is the first time we can’t get ahead of ourselves because everything continues to change,” says Lee.

That’s a polite way of stating the situation. The National Restaurant Association anticipates a $225 billion decline in restaurant sales over the next few months, and the loss of potentially millions of jobs. As mentioned above, entire states are mandating that restaurants close their dining rooms. Major chains are voluntarily shutting down all operations in certain parts of the world. And everything continues to shift so rapidly there’s no telling what the restaurant industry will look like in two days, let alone two weeks.

“Right now we’re looking ahead about two weeks at a time,” he told me. “Our number one goal right now is to make sure we take care of our customers and our employees.”

Wahoo’s is committed to offering delivery (“It is a battle that we’re stuck with,” says Lee). Another strategy that could be more financially beneficial to restaurants and workers is to emphasize takeout, where customers order ahead online then come to the store to collect their food.

The biggest challenge here is actually getting customers to understand the restaurant is still (for now) open for takeout orders. Whereas the vast majority of customers automatically associate quick-service restaurants like Wendy’s or even some fast-casual chains (think Chipotle) with to-go orders, there are many more restaurants in America people still think of as  sit-down establishments. But with 100 percent of orders now being off-premises ones, more has to be done to remind customers the takeout option exists.

Incentives for pickup orders are one way Wahoo’s is doing that. For example, customers who order a family-style meal for pickup and get free desserts as well as a gift card as a reward. There are deals on kids meals for those ordering food for pickup. Lee says the point of these incentives is to get customers to come back to the restaurant, both now and later.

Pickup orders also make more financial sense for the restaurant itself, because the commission fee owed to third-party services like Grubhub or DoorDash is much lower (there’s no driver to pay). Lee is quick to note that Wahoo’s doesn’t want to “get into a war with the delivery system.” That said, he adds that delivery “doesn’t make us a single dime.” Promoting takeout orders is a way around that. 

As an added benefit, it’s also a way for employees making the food to directly receive tips, something that doesn’t happen with delivery orders, where customers pay and tip online and the money only goes to the driver.

Questions around takeout as a business model remain. For now, it’s a viable way for restaurants to offer off-premises ordering and, unlike third-party delivery, connect directly with customers. That could change as the number of COVID-19 cases goes up and more restaurants close up entire operations. And unfortunately, it’s impossible to say right now if a state like California would implement mandatory closures for all restaurant operations, takeout included.    

Lee and Lam said they don’t anticipate seeing full restaurant openings until the end of May at earliest. Until they, they are trying to react to the ever-changing situation as best they can.”

“This is not going to be a tomorrow morning turn the lights back on. It’s going to be tough,” says Lam. “As a community we really need to get our act together and rally.” 

Instacart to Add 300,000 Shoppers

Instacart is bulking up. The company announced today that it is responding to the surge in demand for its grocery delivery services by adding 300,000 shoppers to its platform over the next three months.

Instacart shoppers are the workers the company uses to go into stores, pick out the items customers order and deliver them. In a corporate blog post, Instacart Founder and CEO Apoorva Mehta wrote:

Today, we have more shoppers on the Instacart platform than ever before. Given the continued customer demand we expect over the coming months, we’ll be bringing on an additional 300,000 full-service shoppers to support cities nationwide. As more people look for immediate, flexible earnings opportunities during this time, we hope that Instacart can be an additional source of income for those looking to earn while also delivering for the communities in which they live.

Instacart operates in more than 5,500 cities. In a press release announcing the news, Instacart said that in the past few weeks, it has seen order volume grow by more than 150 percent year-over-year, with average customer basket size also increasing by 15 percent. The additional 300,000 full-service shoppers will more than double the size of its shopper workforce.

That the company is seeing such a spike in demand is not surprising. The COVID-19 pandemic has forced people into stocking up for what could be a long haul indoors. Many people adopting social distancing find it easier to have food delivered rather than interact with the (potentially contagious) general public at the grocery store.

I count myself among that surge in Instacart traffic even though it’s not available where I live. Instead I used it to order food for my elderly parents who are in a high-risk population and still stubborn about going to the grocery store in person.

Anyone who has tried to order groceries online recently has assuredly run into lengthy delays (I ordered from Safeway a week and half ago and it arrives tomorrow)(hopefully) and out-of-stock error messages. Instacart is among a number of companies looking to hire a lot of people immediately. Amazon wants to bring on 100,000 people for its delivery operations, Kroger is hiring 10,000 across the country, and Walmart plans to hire 150,000 new workers.

With COVID-19 decimating the restaurant industry and estimates that five to seven million service and kitchen jobs could be lost, any job could be a lifeline for those in need until this pandemic passes.

Just remember that all these Instacart, Amazon, Kroger and Walmart workers are on the front lines, putting themselves at risk going into stores and to your homes. So be kind and tip them generously.

Join Us for the COVID-19 Virtual Strategy Summit for Food and Restaurants

During this pandemic that has radically reshaped pretty much everything in our lives in the blink of an eye, we keep coming back to one question here at The Spoon: How can we help?

And so it’s with that in mind that we decided to have a virtual summit to discuss ideas and come up with strategies for navigating the COVID-19 pandemic for the food and restaurant industry.

This virtual summit, called the COVID-19 Strategy Summit for Food & Restaurants, will take place on April 6th and feature experts who can talk to and share perspectives about the operational, business, legal and historical impact that coronavirus is having on the food business. While no one has navigated a worldwide pandemic like COVID-19, we think bringing together some of the industry’s biggest thinkers to share their perspective and some advice, we can maybe help some of those scrambling to figure out this new normal.

The event, which we’re working on with the great people from the Future Food Institute is in just two weeks, and we’ve already assembled some amazing speakers, including:

Chef Mark Brand – Founder of Save-On Meats and creator of the Token Program to feed those in food insecure situations

Sara Roversi – Founder of the Future Food Institute

Paul Freedman, history professor at Yale University and author of American Cuisine: And How It Got That Way

Ryan Palmer – Partner at Lathrop GPM and chair of firm’s Restaurant, Food, and Hospitality group

Dana Gunders – Executive Director of ReFED and recognized expert on the problem of food waste

The event is free to attend and you can register here. We’re using Crowdcast as the platform, which is highly interactive and allows audience members to ask questions share ideas with speakers and other attendees, so make sure to come with questions..

Also, if you are or know a world-class expert on some aspect of the food or restaurant business that could provide hugely valuable to business owners or employees in this new world, we’re still looking for a couple more speakers so drop us a line (no product pitches, please). If you have an idea about how you’d like to support us by getting the world or tapping into your network, we’d like to hear from you too.

Finally, as you know The Spoon team has been working every day trying to uncover stories of people innovating on the front lines of the food world during COVID-19. If you have a story or news you think we should know about, please let us know.

Stay safe and healthy and we’ll see you (virtually) on April 6th!

Territory Foods Lets Restaurants Package Pre-Made Meals for Subscription Delivery

A byproduct of this global pandemic is that restaurants are being forced to try new models to stay in business as people are increasingly told to shelter in place and social distance.

We’ve seen dine-in restaurants pivot to delivery and curbside pickup. But Territory Foods this week launched a new initiative to give restaurants another possible sales channel in the form of weekly subscriptions.

Territory Foods may sound familiar to Spoon readers. They took over serving Kettlebell Kitchen’s customers after Kettlebell abruptly shut down last year. Territory provides an operations and logistics platform for restaurants and chefs to manage the ordering and delivery of pre-packed, ready-made meals.

Basically, instead of a customer ordering one meal one evening from a restaurant, they could order a number of meals in advance and have them packed up, kept cold and delivered all at once. Restaurants just prepare the meals and hand them off to Territory, which handles all the ordering and distribution.

“Through our platform, folks can order meals direct to their home,” Stefan Niemczyk, Head of Culinary for Territory Foods told me by phone this week.

This type of subscription approach offers restaurants a few benefits, according to Niemczyk. First, obviously, it’s another sales channel for restaurants in these troubled times where every dollar counts. Plus, that revenue is frontloaded and gives restaurants an accurate sense of how much food they need to prepare. Second, Territory can expand the geographic footprint of a restaurant, so a restaurant in LA can serve people in San Diego.

Additionally, Territory has a full culinary team on staff. They can help restaurants put together menus based on data from existing customers, cater to specific diets, and also figure out how to design and prepare each meal for optimal travel.

Right now, Territory is available in the Bay Area and all of Southern California, as well as Washington DC, Baltimore, Virginia, parts of New York City including Manhattan, parts of New Jersey, and Dallas and Houston, TX. Niemczyk wouldn’t get specific about pricing, saying only that it’s a revenue share on a per meal basis that changes depending on the meal concept.

While this pandemic is pushing restaurant owners into new avenues of revenue, the biggest barrier to trying something like Territory might be the restaurant business itself. Faced with a revamping of their businesses, can restaurants stay alive long enough to even try something like Territory?

At least Territory seems to be giving restaurants one more way to get a fighting chance.

McDonald’s Shuts Down U.K. Restaurants

By the end of the day today, McDonald’s will close all 1,270 of its restaurants in the U.K. in response to COVID-19 concerns. That includes takeout and drive-thru options as well as delivery.

McDonald’s sent the following tweet over the weekend:

McDonald’s franchisees in the UK are expected to follow those moves and close as well. Employees of corporate-owned stores will receive full pay for their hours scheduled through April 5.

Previously, McDonald’s had closed its dining rooms but remained open to fulfill off-premises orders around the world. Today, however, McDonald’s U.K. head Paul Pomroy told the BBC, “Over the last 24 hours, it has become clear that maintaining safe social distancing whilst operating busy takeaway and Drive Thru restaurants is increasingly difficult and therefore we have taken the decision to close every restaurant in the UK and Ireland by 7pm on Monday 23 March.” 

The chain also fully closed 50 locations in the U.S. on Friday, though those stores were part of larger buildings affected by COVID-19, not standalone locations. Still, the sweeping closures in the U.K. could be an indicator of what’s to come Stateside, particularly where takeout is concerned. Over the weekend, Starbucks ended takeout service from its U.S. stores because of the “high traffic” locations were experiencing. The Seattle-based coffee chain was one of the first to close its dining rooms and switch to a to-go model last week, with McDonald’s and others following shortly thereafter. Which could mean McDonald’s is well on its way to axing its own takeaway services in the U.S.

It seems doubtful McDonald’s would get rid of drive-thru or delivery right now in the U.S., given how important those two channels are to overall sales growth. But with news of the coronavirus changing not just every day but every hour and more states taking stricter measures to limit human to human contact, nothing is a given. This is far from the last time McDonald’s, Starbucks, and other QSRs will have to quickly shift strategy in the age of coronavirus.  

Lyft Will Deliver Meals to Seniors and Kids to Help During COVID-19 Crisis

Ridesharing company Lyft announced a number of new initiatives over the weekend to help combat problems arising from the continued COVID-19 crisis. That includes meal delivery for those in need.

In a corporate blog post last Friday, Lyft outlined the new steps it was taking:

Supporting delivery of meals for kids and seniors in need: Students who receive free or subsidized lunch at school and home-bound seniors have been heavily affected by shelter-in-place advisories. To meet crucial food access gaps, Lyft is working in partnership with government agencies and local non-profits. Starting with a pilot in the Bay Area, drivers will be able to pick up meals from distribution centers and deliver them without contact to individuals in need. We are working to quickly scale this program throughout California and across the country. 

As schools have been forced to close amid the global pandemic, there is ongoing concern about how kids in low-income areas will get fed. In response, schools have been creating grab-and-go meals, but those still need to get to the kids, something that isn’t easy when parents have to work (and fear losing their jobs). Lyft stepping in like this could provide a great community service.

Lyft also said it was activating its LyftUp program, a partnership with public heath entities, non-profits, governments and community organizations to provide additional assistance to serve populations in need. Through LyftUp Grocery Access Program, Lyft will be providing rides “to and from grocery stores in food insecure areas.”

Lyft is among a number of companies stepping up to serve the most vulnerable populations at this time. In Atlanta, Goodr has been working with schools to deliver meals to 40,000 students in that school district.

In addition to food related activities, Lyft also launched programs to assist with the delivery of medical supplies, and non-emergency medical transportation for low income individuals.

While Lyft, the company, announced these initiatives, it’s important to remember that it ain’t the C-level execs or hardware engineers or marketing teams that will be driving around and delivering meals. It’s the everyday contractors who are literally on the front lines of this epidemic. If you are still using ridesharing services (we assume you’re only leaving your house to get groceries), and are able — tip generously.

COVID-19 Got Shoppers to Order Groceries Online, but Will They Keep Coming Back?

As COVID-19 has forced shoppers indoors, the growth curve of online grocery has suddenly accelerated, with downloads of popular grocery apps increasing by as much as 2000%. Shoppers who were previously hesitant to buy groceries online have found themselves now doing so out of necessity. It’s a bittersweet victory for online grocers who have long struggled to gain real traction.

But as the old adage says, “this too, shall pass.” The current crisis will subside, and when it does, it’s anybody’s prediction if grocery shoppers will retain their newfound affection for buying foodstuffs online. I believe that the outcome of that question will be determined by the kind of customer experience that online grocers deliver to shoppers now.

Here are three levels of effort that online grocers might want to focus on to make sure that experience will keep bringing shoppers back after the crisis has passed.

1. A functional platform and robust delivery capability is crucial

Online grocers with holes in their game need to scramble. They had better eliminate technical glitches, ensure that their back-end can support purchases in large volume, secure agreements with suppliers for gluts in demand, and validate that their pickup and delivery services are built to flexibly scale.

Even some very established players have seen troubles during this spike of new traffic. British online grocers like Ocado and others came face-to-face with this problem recently, as sites and apps repeatedly crashed under the weight of new users. Some ultimately had to turn new customers away, or create “virtual queues” just to use the service. Morrisons quickly updated its payment terms to make sure that deliveries from small suppliers would not be stymied by cash flow problems.

American retailers have rather famously faced logistics problems. Instacart, Amazon and others have been unable to meet their typical delivery commitments while Walmart, Target, and Amazon are all facing severe inventory problems on high-demand items.

While it’s understood that these are unusual times, online grocers should take a lesson and develop contingency plans for higher traffic. It’s a good time to take a hard look at both the technology and the support systems that you will need to service your new customers.

2. Make sure your shopping experience is easy 

Adoption of online grocery shopping to date has largely been driven by tech-savvy millennials. Provided that your online grocery shopping website and app have a half-decent user interface, these young shoppers will natively understand how to navigate them. But that may not be so true of those who have hopped on the bandwagon recently. Either way, ease and enjoyment of the online shopping experience can make or break loyalty to your online platform.

If your online shopping experience is not already as easy and smooth as it could be, now’s the time to change that. Products must be easy to find through search functions and intuitive shopping categories. Consider carefully how you are organizing product by category and sub-category, by brand, price, and even by lifestyle or dietary choices. Think about how to best present holiday and promotion items. If shoppers feel that it is difficult to find what they want, they’ll soon switch back to what they know.

Don’t neglect sign-up, check-out, and re-order, either. Think of online grocery as a means to “always have the customer in the store.” You can make shopping easier by proposing automatic delivery of common staples each shopper routinely purchases. The more seamless these routine functions are, the more customers will appreciate the convenience of shopping online.  

3. Make online shopping about personalization, imagination and discovery  

So what about online grocers who already have a functional platform that makes it easy for shoppers to get what they need? If you are one of these grocers, you are positioned to create not just a functional shopping experience, but an extraordinary one. Online grocery should not be just “a store on a website.” By making your online platform emulate something that it is not, you’ll miss out on making it something much better.

That something should include smart, personalized recommendations to customers. When a shopper puts fresh chicken breasts, bouillon cubes, and vegetables in their cart, you could recommend egg noodles for the chicken noodle soup they are making, but you could also suggest freshly squeezed orange juice or hot tea, honey, and ginger for whoever is nursing a cold. That vegan shopper who is always buying garbanzo beans and tahini will probably appreciate you suggesting the imported middle-eastern spices that just came in. And for that customer you know is looking to shed a few pounds, you could prioritize delicious, healthy foods that help him or her choose wisely. 

Henry Michaelson | Co-Founder, President & CTO at Halla 
While studying computer science at UC Berkeley, Henry co-founded Halla, a taste intelligence company that enables retailers to predict the personal preferences of their shoppers, all in real time. He is responsible for constantly improving Halla’s machine learning algorithm and for internal leadership, especially with respect to technology. Henry’s previous projects include machine learning based classification of supernovae in the UC Berkeley Astrophysics department, a speaking role in the Warner Brothers blockbuster comedy Project X, a three year stint as lead guitarist for Joe Banks, and a patented algorithm that has distributed over $7M in awards to mobile gamers.