Last week we published a live interview we hosted with the Former CEO of Domino’s UK master franchise and the Current CEO of Burger King UK where we discussed how restaurants are looking at digital channels.
During the last quarter, we have spoken to many restaurant chain executives and there was one core takeaway: they all deeply appreciate the relationship with food delivery platforms.
This seems to be overlooked by investors. But it’s worth reiterating that this year there would’ve been far more restaurant closures without the delivery platforms. This is a quote from the CEO of BK UK:
“Over time, we’re going to be pushing across all these digital ways but yes, when we get to a critical mass, we’re going to be spending more marketing dollars on click and collect; we’re going to be spending more marketing dollars through our white-label, as well. Are we going to walk away from the aggregators? Absolutely not because, ultimately, they are bringing in the volume and they are going to carry on doing that for the foreseeable future. We need them and they need us.”
However, there is another important section of the quote above:
“when we get to a critical mass, we’re going to be spending more marketing dollars on click and collect; we’re going to be spending more marketing dollars through our white-label, as well”
The restaurants might appreciate the food delivery platforms today but they are committing to higher-margin white label solutions where they take back ownership of the customer.
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