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Blue Apron sells itself for a mere$103m Blue Apron, the meal-kit delivery company, accepted to sell itself to Wonder Group for a mere $103m A failure for a company that raised $0.4bn and that once reached $1.9bn market cap Why Blue Apron failed? - First, the segment is notorious for its complexity (fresh food logistics requirements, difficulty to generate attractive gross margin to absorb fixed costs, high-scale requirement to drive mental availability at scale...) - Specifically, Blue Apron lacked vertical logistics integration & experienced repeated supply chain issues - It had fewer consumer options/ price-points vs. its competition (HelloFresh) which led to under-optimized CLTV - It was sub-scale ($0.5bn net revenue vs. $7.6bn for HelloFresh) - It displayed one of the lowest gross margin on the segment (25%-35% vs. 55%-65% for HelloFresh) The Wonder Group began making waves in May 2021, operating a fleet of faceless vans in Westfield, New Jersey. Wonder’s goal was to deliver fine dining options to residents of the New York City suburb. Vans were retrofitted as kitchens to cook and deliver the food to the customer The company partnered with restaurants to recreate their menu in an effort to save affluent suburbanites from having to go into the city to eat their favorite fine dining options By 2023, Wonder had abandoned the food truck concept, instead opting for a food hall restaurant concept that offers several menus within the same store. Similar to the food truck concept, Wonder has licensing deals with other well-known restaurants to prepare their foods in Wonder locations Last year, Wonder raised $350 million at a $3.5 billion valuation, according to the Wall Street Journal. For now, Wonder has indicated that Blue Apron will operate more or less the same “Wonder plans to continue Blue Apron’s current operations serving customers nationwide under the Blue Apron brand, with expected new synergies between consumer-facing apps and delivery logistics,” Blue Apron said Friday. Definitely a deal to watch in the coming quarters Keen to hear your perspective To hear more on our research on M&A in the FMCG industry: https://lnkd.in/eaUgq3KU To get all our FMCG CEO insights, sign-up to our newsletter: https://lnkd.in/eR8vDpvE #fmcg #cpg Nestlé Unilever https://lnkd.in/ddqYDZVk

📦 First Meal Kit Delivery Service is Acquired - Wonder Group Takes Over the Business 🥦 Back in 2017, when Blue Apron launched, it was one of the first #cooking kit services in the global market. At the time, the meal kit delivery service #company was valued at around US$2 billion, however, in the last 6 years, a lot has happened. 📈 Blue Apron shares #soar over 130% after news that the company is being #old In May, #CEO Linda Findley announced that Blue Apron was "actively pursuing all options available to us," via MarketWatch. Now Wonder Group has agreed to buy the company for $103 million, $13 per #share, a 137% premium to Blue Apron’s closing price last Thursday. As a result, the shares of Blue Apron Holdings (#APRN) surged more than twofold during early trading last Friday. The transaction will close in the fourth quarter of 2023. Until then, Blue #Apron will remain "Blue Apron" but will operate under and in accordance with Wonder. All these changes may lead to some shifts in the mobile app and logistics of delivery. 🔮 What is awaiting us in the #future? The #privatelyowned company Wonder offers meals created by #celebrity chefs, and picks them up, then #delivers them to homes or serves them at its locations. Looking ahead, CEO Marc Lore has big plans for #Wonder and by extension Blue Apron, outlining a vision for a 7,000-unit company offering meal kits, prepared-to-order food and groceries. In a statement, Lore says the purchase of Blue Apron immediately "accelerates our strategic position" to create the "#leading meal kit platform". 💡 Interested in more exciting #news & #insights? Then feel free to visit us: https://lnkd.in/ema55zxh  Sources: CNN, Yahoo News, Investopedia #cookingkitservices #BlueApron #mealkit #mealkitplatform

Exciting news in the fast food industry! I've had a rollercoaster relationship with Subway, but when I'm in a rush and looking for a quick and relatively healthy lunch option, they occasionally get my vote. Never heard of Roark Capital, but recognize some of their well-known fast food chains like Dunkin, Auntie Anne's, Cinnabon, Arby's, and Baskin-Robbins – all household names! 35,000 stores worldwide, making them the second-largest fast food chain after McDonald's. Talk about an impressive footprint! It got me thinking about the exciting possibilities for collaborations with their impressive roster of fast food brands. $9 billion pricetag translates to approximately $250,000 per store. Quite a substantial investment, but the possibilities for innovation, growth, and cross-branding seem endless. Look forward to see how Roark Capital leverages the strengths of their fast food brands to create even more exceptional experiences. #FastFoodIndustry #CollaborationOpportunities #ExcitingTimes

DoorDash plots expansion outside core restaurant business in US DoorDash CEO Tony Xu unveiled the company's strategic move to diversify its investment portfolio beyond its core business of delivering restaurant meals. With a robust cash reserve, DoorDash is eyeing new markets and exploring opportunities beyond the conventional restaurant delivery landscape. Since its €7bn all-stock acquisition of Finland's Wolt 18 months ago, DoorDash has expanded its footprint to 27 countries, marking a significant leap for the San Francisco-based giant. Xu emphasized two primary areas of focus for DoorDash's investment – expanding globally and diversifying beyond restaurant partnerships. Job postings indicate the company's interest in venturing into Luxembourg, echoing its strategy of targeting smaller geographies often overlooked by competitors. DoorDash seems to have maintained momentum, outperforming rivals such as Delivery Hero and Just Eat Takeaway.com in 2023. The company reported a 27% rise in third-quarter revenue to $2.2bn, showcasing a bullish performance. Xu affirmed a cautious approach to investments, stating, "We're not going to invest behind inefficient growth" and maintaining a "high bar" for acquisitions. DoorDash has significantly strengthened its market position in the US restaurant delivery space, capturing 59% of the market according to researcher YipitData. This growth has been underlined by a nearly doubling of its market share over the past five years, surpassing competitors like Uber. While DoorDash's shares more than doubled last year, reaching a market capitalization of $39.4bn, they are still below the 2021 peak. The company has also engaged in stock buybacks, authorizing the repurchase of up to $750mn in shares in February. DoorDash's expansion strategy extends beyond geographical reach. The company ventured into alcohol delivery in 2021, covering 20 US states, Australia, and Canada. Furthermore, DoorDash is actively building an advertising business launched two years ago, contributing to revenue growth. The company is not limiting its scope to meal delivery. Following the footsteps of other delivery platforms like Deliveroo, DoorDash is eyeing retail and grocery as pivotal avenues for expansion. CEO Tony Xu emphasized the advantage of having a large consumer and driver base, stating, "We went from zero to a multibillion-dollar business" for non-restaurant deliveries. With over 32 million monthly active users and six million drivers as of the end of 2022, DoorDash has become a significant player in the delivery and logistics industry. As the food technology landscape evolves, DoorDash is positioning itself not only as a meal delivery service but as a comprehensive logistics and delivery solution for a wide array of products and services.

https://lnkd.in/gNJRxq3E Krispy Kreme reported its first quarter earnings results Thursday morning, but oftentimes the call sounded more like it was coming from McDonald’s. No surprise really, as it was the first time we heard from Krispy Kreme executives since the two chains announced their agreement to sell doughnuts at McDonald’s restaurants nationwide by the end of 2026. They’re available in-store and at the drive-thru, individually or in boxes of six, starting at breakfast and lasting throughout the day while supplies last. McDonald’s could likely benefit from such a seamless integration. In a statement earlier this year, McDonald’s chief marketing and customer experience officer Tariq Hassan said the partnership offers McDonald’s a “chance to unlock new business opportunities in the breakfast category and throughout the day.” Of course, there’s also the opportunity for incremental revenue for franchisees. In a note published in March, Mark Kalinowski, CEO/president of Kalinowski Equity Research, estimated that the initiative could drive added weekly revenues of $1,032 to $1,432 with a per-doughnut retail price of $1.29 to $1.59. This would equate to about $53,600 to $74,400 in incremental sales per restaurant. “If the doughnuts are sold at 10,000 to 13,000 McDonald’s U.S. restaurants, this may suggest an incremental annualized addition to McDonald’s U.S. systemwide sales of $550 million to $715 million,” Kalinowski wrote. Importantly, most McDonald’s franchisees seem to be on board with the menu addition. In July 2023, Kalinowski’s franchisee survey asked operators if they would like to sell Krispy Kreme doughnuts in their restaurants; 57% said yes and just 29% said no. Growing this partnership throughout McDonald’s giant domestic system will also help Krispy Kreme achieve a few of its biggest goals – adding points of access and driving profitable growth through its hub and spoke operating model. “We’re excited about our national rollout with McDonald’s, which is expected to add more than 12,000 new points of access alone,” Charlesworth said....

Joe Guszkowski Restaurant Business Online updates us on what's happening with Ashwin Kamlani and JUICER. "Dynamic pricing startup JUICER has raised $5.3 million as it looks to bring its pricing optimization technology to more restaurants. The seed funding found was led by venture capital firm York IE. San Francisco-based Juicer uses AI, machine learning and historical sales data to adjust restaurants' menu prices in real time. Its products include a dynamic pricing tool that can automatically change a restaurant’s prices on third-party delivery apps based on demand. The system raises prices during busy times and lowers them during slower periods. The data-driven approach has caught the industry’s attention as restaurants try to strike the delicate balance between driving traffic and protecting margins with their menu prices. Meanwhile, the growth in online ordering and digital menus has made real-time price adjustments feasible. “Juicer is at the forefront of a fundamental shift in how restaurants operate and compete,” said Marshall Everson, VP of investments and strategy at York IE, in a statement. “They are solving immediate pain points by helping restaurants navigate the narrow canyon between rising cost and consumer price sensitivity.” Everson is joining Juicer’s board as part of the investment. Dynamic pricing has been in the spotlight since Wendy’s said it planned to test the technology next year. The news sparked backlash over the prospect of Uber-like “surge pricing” in restaurants, and Wendy’s later clarified that it will only use digital menu boards to offer different items and deals throughout the day. Juicer said it is not a surge pricing company but instead gives restaurants the ability to offer “data-driven happy hours.” Customers can benefit by getting lower prices at off-peak times, or pay a “modest premium” for faster service during busy times, when higher prices help limit bottlenecks, Juicer said. The company said this flexible pricing strategy can increase same-store sales by 5% to 10%. As for consumers' willingness to accept fluctuating prices, Juicer said that it has seen no pushback from customers. A recent report on restaurant technology by the National Restaurant Association found that 61% of adults have a very favorable or somewhat favorable view of dynamic pricing...read more." #QSR #Entrepreneur #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Jonathan Martin Michael Scherr Augment Ventures Muditā Venture Partners Athletic Greens Kat Cole, KAYAK Paul English 16 Handles Solomon Choi Postmates by Uber Andreas Lieber Two Roads Hospitality Jamie Sabatier Kitchen Fund

📰 Chicken QSR Chain BigGuys Bags $2 Million from NRIs. Chicken QSR (Quick Service Restaurant) chain BigGuys has successfully raised $2 million in funding from Non-Resident Indians (NRIs), aimed at accelerating its expansion plans and enhancing its market presence. 💰 Funding Highlights: - Capital Raise: BigGuys secured $2 million from NRI investors, reflecting confidence in its growth potential and business model. - Strategic Use: The funds will be utilized to expand the restaurant chain's footprint and improve operational efficiency. 🚀 Expansion Plans: - New Outlets: BigGuys plans to open new outlets in key locations, targeting increased market penetration and customer reach. - Brand Building: The investment will support marketing initiatives to strengthen BigGuys' brand presence and attract a larger customer base. 🍗 Operational Enhancements: - Menu Diversification: Funds will be allocated towards diversifying the menu, introducing new chicken-based products to cater to varied tastes. - Technology Integration: Enhancing technology infrastructure for better customer service, streamlined operations, and improved order management is a priority. 🌟 Strategic Initiatives: - Quality Focus: Maintaining high-quality standards and ensuring consistent customer satisfaction remain central to BigGuys' strategy. - Franchise Expansion: Exploring franchise opportunities to accelerate growth and expand the brand’s reach across different regions. 📈 Market Potential: - QSR Growth: The quick service restaurant market is expanding rapidly, with increasing demand for convenient and quality dining options. - Competitive Edge: BigGuys is well-positioned to capitalize on this growth with its unique offerings and strategic expansion plans. 📅 Future Outlook: - Sustainable Growth: With the new funding, BigGuys aims to achieve sustainable growth, establishing itself as a prominent player in the chicken QSR segment. - Customer Experience: Focusing on enhancing customer experience through quality food, efficient service, and innovative offerings. BigGuys' $2 million funding from NRIs marks a significant milestone in its journey to expand its footprint and enhance its market presence. The investment will enable BigGuys to innovate, grow, and deliver exceptional dining experiences to its customers. Bigguy's Wingery #BigGuys #QSR #Funding #ChickenRestaurant #NRIs #ExpansionPlans #SustainableGrowth #StartUpNews #MicroShots #NewsUpdates

Jonathan Maze Restaurant Business Online tells what's coming at McDonald's with "the fast-food giant, which has shifted its focus to value, is working to convince franchisees to go along with a bundled meal featuring a McChicken or a McDouble. The plan is expected to pass." McDonald’s is considering a $5 value bundle in a bid to bring inflation-weary consumers back into its restaurants. The fast-food burger chain is working to convince franchisees to OK a $5 meal deal that would last for a limited time. Customers would get their choice of a McChicken or a McDouble, along with a four-piece Chicken McNuggets, fries and a drink. Bloomberg first reported the offer and several sources confirmed it to Restaurant Business. Operators two weeks ago turned down a $5 offer through OPNAD, or the Operators National Advertising Fund. McDonald’s returned with an offer sweetened with the help of The Coca-Cola Company. Franchisees we spoke with expect the deal will ultimately get approval in a field vote set for this week. The National Owners Association (NOA), an independent group of 1,000 McDonald’s owners, praised Coca-Cola for stepping in, though it did not explicitly endorse the offer. “NOA believes the current strategy demonstrates an unwavering commitment by McDonald’s franchisees and our incredible supplier Coca-Cola to address the immediate financial challenges our consumers are facing by offering this phenomenal value to our guests,” the association said in a statement to Restaurant Business. “There are additional value tests being conducted across the country as we seek even more value options to help our customers during these challenging times,” NOA added. “The franchisees are committed to our guests and are making significant investments to bring these values to them.” The inclusion of Coca-Cola into the value process is notable. It’s not uncommon for major franchises to seek financial assistance from major suppliers, in the form of rebates or other incentives, to convince franchisees to go along with major ideas. McDonald’s and its beverage supplier have long been close partners. NOA, however, argues that the third leg of McDonald’s famous “three-legged stool” featuring the franchisor, franchisee and suppliers, should step up financially, too. Historically, the group said, the company helped with such strategies. “The only disappointment is the lack of any financial contribution by McDonald’s to assist with bringing these incredible value offerings to our customers,” the statement said...Clickthru to read more." https://lnkd.in/eqtNHs4d #QSR #Entrepreneur #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Jonathan Martin Michael Scherr Chris Kempczinski Ian Borden Taco Bell, The Wendy's Company Burger King

🍕PizzaBox AI: How we want to help MOD Pizza 🆘 This article was published few days ago: https://lnkd.in/gFWwHyex It made us think and together with Andrew S., we had meetings and discussions on how we can help MOD Pizza with our new #pizza subscription program 🚀 Andrew Simmons, who pioneered pizza subscriptions [at Mamma Ramona's Pizzeria] and made the subscription program popular by building in public and writing about the subscription process with numbers, partnered with RestoGPT AI | PizzaBox to build the most advanced pizza subscription platform in the world [yes, in the world] and make this solution available to every #pizzeria in the US. This partnership made us to rethink our growth strategy and concentrate our efforts to build the most scalable platform [both for merchants and customers] for pizzerias to fund their needs by raising immediate cash at 0% interest and with other huge, HUGE benefits 📈 .  [the official launch date is July 20th 🚀 ] So, how can we help MOD Pizza 🍕 ? We can generate $135MM for MOD Pizza, within 2 weeks, with PizzaBox. [and you know we love numbers] so how did we come up with these numbers ? MOD Pizza generates $699.2MM [open source data] – 553 location = $1,264,014 per location [ave., sales/location] Assuming the AOV is $19 = 36,789,473 orders/year or 66,527 orders per location. By doing general, high level [not deep] research and analysis [social media, open source data, history, etc.], we can confidently assume that each location has at least 5K customers [this number can go as high as 10K]. Based on our subscription data, 25% of the customers will opt to the subscription program and based on that, we came up with: 5K customers x 550 stores = 2.750.000 x 25% = 687.500 customers x $197 [yearly subscription fee] = $135.437.500 subscriptions sold. We also found a strong Reddit community that will support and help to increase the awareness to sell more subscriptions, in addition to our marketing automation and influencer supported programs. What are the benefits to MOD Pizza? 🚀 Raise cash: $135MM with zero % interest [within 2 weeks] with no risk, no loans. 🚀 Get loyal customers [customers that buy subscriptions tent to be the most loyal customers in the future] 🚀 Make more on return visits [this is probably the best loyalty program ever as it brings the customers back on weekly basis, who spend even more regularly] Contact me, Gary Chaglasyan or Andrew S. directly to get more information on PizzaBox AI – your pizza subscription platform. Vincent Chaglasyan Shawn P. Walchef Matt Wampler Spencer Amadon Mike Locke Henry Arciolla Sam Kennedy Beth Scott Ben Sadler Jason Haleva, CCP Casey Winchell Robert Notte Becky Mulligan Scott Svenson Rick Hynum Charlie Pogacar Joanna Fantozzi Joe Guszkowski Nancy Luna 🍽️Zack Oates🍕 Paul Cairnie Paul Allen Maysam Lavasani Michael Jacobs Angela Diffly Lisa Landsman

Ron Ruggless Nation's Restaurant News tells us "Marc Lore’s New York City-based startup nearly doubles equity investment" "Wonder, the New York City-based food delivery platform, has completed a $700 million funding round, nearly doubling its equity investment, the company said Tuesday. Wonder was created in 2018, initially featuring a fleet of trucks that delivered made-to-order meals directly to customers’ homes. At the beginning of 2023, it shifted its model to brick-and-mortar locations with delivery. The company operated 10 locations in New York City and New Jersey, and delivered meals by such chefs as Bobby Flay and Michael Symon. In February, it opened its eleventh unit inside a Walmart in Quakertown, Penn., as part of a pilot program aimed at testing where the concept could locate. The 750-square-foot Walmart space features eight different cuisines, or less than one-third of a typical New York City location. Wonder plans two more Walmart locations in Teterboro, N.J.., and Ledgewood, N.J., this year. Wonder founder Marc Lore is a former Walmart executive who founded such brands as diaper.com and jet.com. All of Wonder's "major" existing shareholders participated in the latest funding round, including NEA Invest and Consulting, GV (Google Ventures), Accel, Bain Capital Ventures, Forerunner, Alpine Investors, and Harmony, as well as further investment from Watar Partners. Lore also invested $100 million, while new investors include Dragoneer Investment Group, Jefferies, Red & Blue Ventures, CAZ Investments, Kuvare Insurance, and Fubon Ventures. Amex Ventures and Nestlé also participated as strategic investors. “We plan to use this latest raise to continue driving these efforts across three distinct levers: expansion, research and development, and driving unit economics,” Lore said in a LinkedIn post on the deal. Wonder plans to have 35 total locations by the end of 2024 and 90 by the end of 2025, all in the Northeast...more" #FoodonDemand #QSR #deliveryfood #Restaurants #Franchise #Franchising #FranchiseChat Chainformation RAAMP Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Landrum Randolph Jonathan Martin Michael Scherr https://lnkd.in/esbeHDkD