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curbside pickup

May 18, 2020

Panera Launches Geofence-Enabled Curbside Pickup

Even as dining rooms slowly reopen, many chains and restaurants are emphasizing curbside pickup when it comes to how customers can get their food. Case in point: today, sandwich/bakery chain Panera announced a new curbside pickup service that, among other things, offers some technological bells and whistles meant to speed up the process.

The Panera Curbside process includes steps you’ll find in many curbside operations these days. Customers order via the Panera app and select Panera Curbside as their delivery option, then include their vehicle’s make, model, and color in the Special Instructions field. For those that prefer it, there’s a standard “I’m here” button they can tap upon arrival. But Panera has also introduced geofencing technology to its curbside process that will immediately notify the restaurant when a guest has arrived, rather than that customer having to find and click a button. Customers, of course, need to be comfortable with getting recognized by a technology system, and so the service is opt in at the moment. 

According to today’s press release, part of the reason Panera is launching curbside pickup is to alleviate some of the congestion that’s been happening in drive-thru lines lately. Drive-thrus have needed an overhaul for some time, as wait times have increased considerably over the last decade. The pandemic just made everything worse. Allowing customers to order ahead or simply pull into a parking space and order directly from their phones could trim down those drive-thru lines.

Over the long term, curbside pickup could and most likely will be a mainstay in terms of ordering options for customers. It wouldn’t be surprising if, at some point soon, companies begin to integrate other technologies, like AI-enabled license plate recognition, into the process.

Curbside is also an obvious substitution for pickup orders, where a customer walks into the restaurant and collects the meal themselves. Though dining rooms (along with everything else) are reopening, many customers will be wary for some time to come about spending too much time in a restaurant, even one with reduced capacity. 

And while curbside will be an important technology to restaurants going forward, it has to actually deliver on its promise of saving time and operational stress in order to be worthwhile to restaurants. A geofence-enhanced app that tells restaurants when a customer has arrived sounds helpful. The test will be whether those notifications help staff or just further overwhelm them, as has been the case at some restaurants.

For its part, Panera already had a robust digital and off-premises strategy at work before the pandemic, which means its back-of-house operations are probably equipped to easily ingest a new technology and ordering option.

April 19, 2020

Curbside Bots and Contactless Everything: What the Post-Pandemic Restaurant Will Look Like

Even an introverted work-from-home veteran like me is starting to get kind of daffy during this here quarantine. But I will say that being stuck at home has given me a lot of time to think (and write) about the state of the restaurant industry, and I catch myself imagining what eating out will be like once we’re past this pandemic. So when Starbucks CEO Kevin Johnson posted a letter this week to employees about the chain’s future, it caught my attention.

In his letter, Johnson more or less said the chain is planning to reopen some of its locations and outlined a plan for doing so. To be clear: Johnson uses the words “open” and “reopen” several times in the text, but at no point promised that your local Starbucks will reopen overnight with the usual setup and operations that existed before the pandemic. 

Which is why I’m singling out Starbucks in the first place. As an international chain that has already dealt with this recovery process overseas, and as a leader in digital business and operations, Starbucks’ plans for reopening stores give us a good hint of what we can expect restaurants to look like once the process of opening the economy begins.

Pulling from Johnson’s letter as well as numerous statements and activities from other restaurants, tech companies, and governments, we put together some predictions for what the post-pandemic restaurant experience might entail.

Note that most of these predictions are around operations and the customer experience. There are a host of other issues, from labor to food waste, I’ll be unpacking those over the next few weeks, so stay tuned.

More space, fewer tables. This is less prediction and more fact, with public figures like California Governor Gavin Newsom saying restaurants will have more space between tables and fewer seats, to ensure social distancing when eating out. Separately, the WSJ noted that restaurant chains may operate at half capacity going forward, and include things like plexiglass shields between booths. That could also spell the end of buffet-style dining and family-style seating. Golden Corral, that bastion of all buffet restaurants, has closed all units for the time being. Even before state-mandated shutdowns, other businesses were nixing community seating. And grocery stores are closing down hot bars.

Lots more mobile payments. Some restaurants are already pushing customers to use their mobile apps to order and pay for food, eliminating the need to touch a kiosk or swipe a credit card. Granted, you have to have a well-designed, easy-to-use app in order to do this, which means we’ll see a surge in smaller restaurant chains developing and/or improving their own mobile experiences for customers, whether in-house or through a third-party service. I expect we’ll also see an uptick in mobile-only locations (though it’ll vary based on state laws around cashless businesses).

Curbside delivery for all. Curbside pickup was once the territory of Sonic and the odd McDonald’s location. With dining rooms shuttered these last few weeks, restaurants have had to find other ways of bringing food out. And since not all of them have been equipped with drive-thru, curbside pickup has become the default option for many. This is one of the methods Starbucks has put into practice over the last few weeks, in some cases even taking it a step further to offer “entryway pickup” for locations without parking lots.

Contactless everything. “Contactless delivery” barely existed as a phrase before China implemented it during the peak of its fight against the novel coronavirus. Now, everyone from Instacart to Pizza Hut offers it, and I doubt we’ll revert back to the old way of handing goods off between courier and customer. For contactless to live up to its name, though, brands need to think about the technical logistics behind the operation. Restaurants’ online order systems need to have the option built right into the checkout process. They should consider providing additional features, such as push notifications to alert customers when and where their order is ready. Contactless will stick around permanently for delivery and curbside orders and, when companies figure out how, probably for in-store purchases, too.

More drive-thru lanes. Austin, TX-based chain Torchy’s Tacos explained to me recently that once the chain was forced to shut down dining rooms, it quickly opened drive-thru windows in locations that had always had the feature but had never utilized it. Many restaurants set up shop in locations that were once a Wendy’s or other fast-food chain. If they haven’t already, they could utilize that space to start offering drive-thru on the regular to customers.   

Gloves and face masks for workers. Restaurants I’ve spoken with over the last couple weeks are quick to emphasize the steps they are taking to protect both customers and workers when it comes to health. Gloves and face masks nearly always come up in that conversation. They’re also part of Gov. Newsom’s plan for restaurants, and will definitely make their way into other states’ frameworks for reopening business.

Robot staff.  Having said that, though, some might just opt for robots when it comes to who’s going to handle your food. My colleague Chris Albrecht recently pointed out that dining customers might prefer “the cold sterility of a robot” to a server wearing a face mask and gloves. Robots, of course, bring up the whole loss of human jobs angle. However, as Chris notes, with fears around the virus and human-to-human contact unlikely to subside for some time, for those restaurants that can afford it, robots might be an appetizing option, at least where city laws permit. Somehow I think they would come in especially handy for running curbside orders to cars.

Okay, wait a minute. Does all this mean my future restaurant experience will involve ordering food ahead of time via an app, then waiting at a plexiglass-encased table for a wheeled bot to roll up with my burger? That sounds lonelier than a month in quarantine.

I doubt it comes to that scenario, though. The COVID-19 situation changes daily, which mean so do expectations about what restaurants will look like when the economy reopens. Maybe all of these predictions will come true. Possibly none of them will. The most likely scenario is that a few of them, like curbside pickup and mobile payments, will become industry standards, and restaurants will use a mixture of the others based on time, money, and customer volume. As states begin discussions around reopening the economy and more chains like Starbucks start outlining their plans, we’ll get a clearer picture of what to expect in the the post-pandemic restaurant experience.

Thanks to Tech, Restaurant Employees Are Accessing Earnings Faster

One area that’s part of any good discussion about the future of the restaurant concerns employees — that is, the servers, baristas, drivers, managers, and others who make up the backbone of the industry.

How they get paid is something that’s fast changing as the industry grapples with dining room closures, mass layoffs, furloughs, and general economic tension. This week, we wrote about Domino’s teaming up with challenger bank Branch to offer employees instant access to their earnings via the Branch app.

Branch is one of a few apps out there that lets hourly workers — who often live paycheck to paycheck — get faster access to much-needed cashflow. DailyPay, which we’ve written about before, is another popular one.

I see an uptick in restaurants making it possible for employees to use these types of apps in future. As everything in the previous section of this newsletter suggests, the restaurant model is rapidly changing, and it’s hard to guess now which formats are most likely to be around next week, next month, or even next year. That means it’s also hard to predict how many people a restaurant will need on staff, and how many hours those individuals can work.

With so many questions up in the air, the least restaurants can do is integrate with one of these apps to get their employees paid faster.

March 20, 2020

With Stadiums Shut Down, FanFood Shifts to Restaurant Curbside Pickup (and Drive-In Movies!)

Sports leagues and games large and small were among the first parts of everyday entertainment to be decimated by the COVID-19 outbreak. No sporting events (and no concerts!) means no one is going to arenas or stadiums. This is a problem for FanFood, a startup that enables food delivery directly to your seat from concession stands at large venues.

So FanFood is doing what scrappy companies do in times of crisis: it is pivoting. And like so many other software companies in the food tech space, FanFood is temporarily pivoting to help restaurants get food to customers now that dine-in is no longer an option in many cities and states.

FanFood launched a program this week to help restaurants do curbside delivery of orders. For the next 60 days, FanFood is waiving the set up and subscription fees for its service. Once onboarded on to FanFood’s software platform, restaurants can take orders and instead of delivery, they can rush food out to the curb where customers can pick it up.

For some restaurants, FanFood might be a more economical option as we learn more about some of the shady strings third-party delivery services are still attaching to restaurants during this downturn.

“We’re not like Grubhub,” Carson Goodale, CEO of FanFood told me by phone this week. “We don’t take commissions.”

Instead, FanFood splits the ten percent convenience fee added to each order 40/60 with the restaurant. So on a $20 order, the two dollars get split with 40 percent going to FanFood and 60 percent going to the restaurant. After the 60 day trial, there is a subscription fee to use the service, which is typically around $119/month.

Implementing curbside service could also help mitigate the spread of the virus because restaurants can use their existing staff to expedite food rather than having a steady stream of unknown delivery people from various services coming through the door.

While FanFood is being nimble in the face of a global pandemic, its ability to innovate might be outpaced by the severity of the virus’ spread. California just ordered all of its residents to shelter in place. Yes, they can go out for food, but with more restricted movement, Californians might just rely on delivery to get restaurant meals. Should these type of shelter in place orders expand across the country, there won’t be much need for curbside pickup.

But that hasn’t happened yet, and in the meantime, FanFood may have another ace up its sleeve: Drive-In Movie Theaters. Don’t laugh! With traditional movie theaters shutting for social distance reasons, drive-in theaters are experiencing a bit of a resurgence since everyone stays inside their car. With no end in sight for this crisis, who knows, perhaps drive-ins will become the new “stadiums” in which we experience sporting events.

August 14, 2018

What the New McDonald’s Flagship Tells Us About the Fast Food Giant’s Future

One of the most famous McDonald’s locations in the world just got a major makeover, inside and out.

The former Rock N Roll McDonald’s reopened last week as a new flagship store, and “redesign” is an understatement. The fast food giant unveiled a 19,000-square-foot structure and a business strategy that are all about two things: staying eco-friendly and improving the guest experience through digital.

So yes, that means there’s a lot of tech involved in this new iteration of an old fast food standard. Dubbed an “Experience of the Future” restaurant, the Chicago location incorporates all McDonald’s latest tech initiatives.

Self-order kiosks — which McDonald’s now plans to install in 1,000 stores each quarter — are front and center. Customers can browse, order, and customize food items, which a McDonald’s employee brings the food directly to the table. It’s a setup company CEO Steve Easterbrook calls “repurposing labor,” and it reportedly is creating more jobs, rather than leaving people unemployed. For those who prefer ordering the old-fashioned way, there are still four cashiers, and yes, they still take cash.

Kiosks are now in about 5,000 McDonald’s restaurants across the U.S. Adding 1,000 per quarter is part of the company’s plan to have kiosks in nearly all freestanding restaurants by 2020.

Better accommodating mobile is another key part of McDonald’s self reinvention. While there are fewer parking spaces in general (it is Chicago, after all), the new flagship has dedicated spaces for those doing curbside pickup via their mobile app. There will also be space to serve more Uber Eats drivers efficiently — another crucial part of McDonald’s rebranding strategy.

But plenty of chains are revamping their business strategies to focus on mobile and kiosks. What sets McDonald’s apart just a little bit more is the actual location. The Chicago flagship building is a massive steel, wood, and glass structure with 27-foot windows, an enclosed arboretum with birds, and over 70 trees on the ground level. It’s basically an Apple store with Big Macs. The location also has a solar pergola with 1,062 panels that can power about 60 percent of the restaurant.

None of these changes are specific to the Chicago location, though; they’re part of a $6 billion effort to “modernize most U.S. restaurants by 2020.”

In some cases, that word “modernize” could be be a BS term drummed up by a marketing department. The reason I believe McDonald’s is that this redesign — the current one as well as future stores — addresses multiple hot-button issues at once: digital ordering may be convenient, but it produces more waste and emissions, even when drivers are third parties or paying customers. That’s where those solar panels come in, as McDonald’s can use them to collect renewable energy and offset some of its non-renewable energy consumption onsite. (The Chicago restaurant is also in the process of becoming LEED certified.) Meanwhile, the addition of table service and Easterbrook’s “repurposing of labor” suggest that our fears of robots taking over might be overly pessimistic. For now, at least, automated services will just become another fixture in the restaurant.

But there’s one thing I can’t shake: at the end of the day, McDonald’s is still serving fast food, which, to name another hotly debated item, conflicts with increasing consumer desire to eat whole, health(ier) foods. Foliage and solar panels are great, but they don’t curb obesity, diabetes, or heart disease. McDonald’s is doing some work in this area. Burgers are now “100% fresh beef” that’s cooked to order. They also unveiled an initiative this year to make the Happy Meal a healthier option.

I’m going to risk oversimplifying the matter here by saying McDonald’s could do more to accelerate its these efforts. Offer more more fruits and veggies as side options. Deter excessive soda drinking by charging for refills. Serve plant-based burgers instead of triple cheeseburgers.

Granted, too many health-conscious options and it wouldn’t really be McDonald’s as we know it. Oddly enough, the mega chain could use that to its advantage. They more or less invented fast food as we know it. Why not modernize the notion of it while they’re reinventing the business?

August 7, 2018

Robot Fulfillment for Curbside Grocery Pickup is Becoming a Thing

Two-hour delivery may grab the lion’s share of headlines in the grocery news world, but store curbside pickup could wind up being a sleeping giant.

Case in point: Walmart announced last Friday that it is partnering with Alert Innovation to build out a robotic fulfillment center in its Salem, New Hampshire store. As Supermarket News reports:

“Walmart is adding a 20,000-square-foot extension to the Salem store to house the Alphabot system, warehouse online grocery orders and serve as a pickup point, with drive-through lanes for customers. When the project is finished, automated mobile carts will retrieve ordered items and ferry them to personal shoppers at one of four pick stations. The associates then will pick, assemble and deliver the orders to customers.”

You can get a glimpse of the system in action in this video:

Associates, Alphabot Team Up to Make Grocery Pickup Even Better

As you can see in the video, small, wheeled robots (Alphabots) scurry around on tracks to bring items to a human, who then puts them in the bag corresponding with the correct online order. Then, expanded, dedicated drive-through lanes provide a fast way for shoppers to pick up groceries (still loaded into trunks by humans… for now) without getting out of their car. The new system is scheduled to be up and running at the Salem Supercenter by the end of the year.

This might sound familiar to readers of The Spoon, as it’s pretty much what the startup Takeoff is doing: creating robot-powered micro-fulfillment centers within existing grocery stores paired with dedicated pickup areas. Takeoff says it only needs 6,000 – 10,000 square feet inside a store to build out its robot fulfillment system.

There’s a lot to unpack with these automated grocery centers. However, there are four major convergent factors that I think could drive their rapid adoption:

First is optimization. Walmart is big on robots, especially for tasks it says are manual and repetitive (oh hi, shelf scanning robot!). It makes more sense for robots to grab items from a backroom than a human to run around with a shopping cart. The Alphabot system, Walmart says, will allow its employees to focus on customer service and selling things. This is something we hear a lot — robots let humans prioritize the more human tasks (like picking produce).

Then there’s speed. A robotic system can fulfill orders faster than a human. While Takeoff currently has a two-hour pickup window for pre-ordered groceries, the company says the system actually completes an order in only two minutes and can ratchet the pickup window down to a half hour, if need be.

In terms of convenience, getting your groceries in half an hour makes curbside pickup competitive with a two-hour home delivery. There’s no need to wait at home (or let a stranger in) when you can pick up orders quickly from your trusted local store on your way home from work, or make them a part of your existing errand routine. Not to mention that curbside pickup from Walmart, at least, is free.

Finally, and this is probably not as huge of a deal as the other factors listed, studies show that a big reason people don’t buy groceries online is that they want to touch and feel a product before purchasing it. Having curbside pickup theoretically allows shoppers to get out of their car (gasp!) and inspect delicate items such as fruits and vegetables, then return them if the selection isn’t to their liking.

Seeing as how none of these robotic fulfillment centers in grocery stores have gone online yet, we don’t know how people will interact with them. But the idea isn’t something retail outlets should sleep on.

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