Technology has brought about many new possibilities. One such possibility is the ability to automate everyday interactions. Industries like grocery, retail, and dining have all been automated with the commonplace nature of smartphones and the internet.
Food Delivery in the Digital Era
When dining out, it is not uncommon to order your meal at a kiosk rather then a register. This is not a bad thing at all, but it does change the sales experience for many businesses. Companies like DoorDash, UberEats, and PostMates have created an entire business model around the food industry by creating convenience for customers. A decade ago, getting food from McDonalds would have involved significant human interaction. In 2020, the only human interaction required of the customer is taking the food from a 3rd party delivery person at your door. Ordering, paying, and pickup can all be done from the comfort of a customer’s couch on the customer’s cellphone or computer.
How this Effects Food Service Corporations
This creates a difficult situation for corporations. The problem a company like McDonalds or Chipotle might face with this new approach to sales is that it makes it difficult for the organization to brand itself. A large part of customer perception has to do with 2 things. These two things are product and delivery. While the product (a BigMac or a burrito) will remain the same, the process and delivery of purchasing the product looks very different. The product delivery is made up of many things such as the physical location’s appearance, smell, aesthetic, and the employee interaction. As automation increases and physical interactions become less common, businesses must find ways to create a unique and memorable buying experience for customers. While the restaurant is selling the product, the buying experience is a large part of what the customer remembers. For certain franchise locations, limiting this employee representation may be a good thing if employees are a poor example of the company or fail to portray the organization’s values. However, for many businesses, limiting employee interaction limits the companies ability to portray the values and USP of the businesses. Businesses in the food industry must be innovative and find ways to spur differentiation and customer loyalty with this shift in the buying experience in the digital era.
BoweryJE22
It seems very true that differentiation would be brought to a new level of challenge. However, I doubt it is hurting their businesses as the convenience make people much more likely to buy food more often. It changes sales in a drastic way undoubtedly though. So interesting!