During this second segment John Shea, Chief Marketing Officer at Jimmy John’s, talks further with Americus about the problems that come with the 3rd party deliver system. John adds that some drivers do deliver for more than one delivery company. Considering this, your food could be picked up and may be sitting in the car as the driver makes other deliveries all over town, contributing to the consumer reports of cold food and wrong food orders. John says they just don’t want to hand their food off to someone who doesn’t have true ownership of it, they just don’t trust these companies to deliver their food. John also notes yet another flaw in the system. When someone uses a 3rd party delivery service, that service maintains the customer data and it’s not passed on to the restaurant. This is a big miss. In a world of big data, knowing your customer is key.
John’s forecast of the 3rd party delivery trend is that it will improve. He sees the numerous companies consolidating and trying to refine processes for improvement. They will have to get cheaper as the economics aren’t sustainable for restaurants, especially franchisees. He doesn’t see the delivery times ever improving to the Jimmy John’s standards of 18 minutes average, something that Jimmy John’s strategically works on. He ends with noting that many of the restaurants that have never offered delivery service before will and have seen a bump in sales but he wonders for how long. Many restaurants are starting to look into the sustainability of the service as it hasn’t been the “silver bullet” they initially once thought. Nonetheless, John is confident that Jimmy John’s is making the right decision, passing on the trend and staying true to the company’s roots.
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