Consumers in Cars Getting Coffee
6/27: France fights Amazon, NYC gets decongested, National Fried Chicken Day
As we settle into the week, the world of delivery keeps on truckin’. There’s a lot to learn in issue two of Modern Delivery, from noticeable policy battles down to holidays you probably didn’t know existed.
Today:
Consumers in Cars Getting Coffee
Don’t Feel Chicken Next Week
Chart Time | Feeling Congested?
France Shows A Different Direction for Delivery
TAKEOUT | 7 Brew Coffee Steams Up Expansion Plans
Fast-growing 7 Brew Coffee — based out of Rogers, Arkansas — announced it was opening four new stores, pushing the regional chain past 100 locations. In keeping with its focus on the Midwest and South, the new outlets are in Alabama, Texas, Arkansas and Michigan. In a crowded coffee marketplace, 7 Brew differentiates itself by purely focusing on drive-through and takeout, plus delivery using that same takeout window.
Context: The chain’s standard “double drive-through” design certainly isn’t going to win any urban planning awards, but it sadly makes sense for the company’s locations in exurbs across the middle of the country. Drive-through coffee got especially popular during the pandemic, but even today 54% of consumers say they prefer it over going in-store.
FOOD | A Delivery-Oriented Holiday?
Next week features a big holiday for Americans; yes of course we’re talking about National Fried Chicken Day! (What the fourth did you think we meant?!) A number of chains are already announcing how they plan to “celebrate” - perchance you’ll want to try KFC’s Ultimate BBQ Fried Chicken Sandwich, or maybe you’re hankering for Bonchon’s New Korean BBQ Sauce, or perhaps you kind of want to meet in the middle and try bb.q Chicken’s Korea’s Finest Fried Chicken?
Context: As delivery has become an ever-more important profit driver for fast and fast-casual restaurants, adapting menus to be delivery-friendly has become the name of the game. And towards that, few food items are worse for delivery than fried chicken (perhaps only soggy french fries give them a run for their money.) Just look at Yum Brands, where growth at Taco Bell has outpaced KFC — perhaps as customers realize the colonel just doesn’t travel well.
CHART TIME | Congestion Pricing to Speed Up Logistics
Two financial hubs — London and NYC — are turning the screws on congestion and pollution. In Ol’ Blighty, the government is building off an existing congestion charge in the central city, rolling out an Ultra Low Emissions Zone across the entirety of Greater London. Across the pond in NYC, officials just got federal blessings to enact congestion pricing on Manhattan, meaning it’ll cost a different amount to enter Manhattan south of 60th street depending on traffic levels. Congestion pricing has been proven to help push less vital trips onto public transport, while freeing up road capacity for more time sensitive uses like deliveries and emergencies.
POLICY | Amazon & France Duke It Out Over Fees
Shopping and shipping giant Amazon is fighting France’s plan to charge a 3 Euro fee on books ordered online, appealing the case to the country’s highest administrative court. While Bezos & Co argue the fee, which goes into effect in October, hurts low income consumers, backers of the tax say it will maintain the country’s culture as it keeps local bookstores in business.
Context: France has taken a decidedly not-so laissez-faire approach to the tech and delivery industries. The government clamped down on dark stores. It enacted a minimum wage for delivery workers. And its worth noting that many of those delivery workers are unionized, not independent contractors. Bonne chance!
A Few Good Links
Kroger wants you to get some “red, white and blue” ice cream delivered for July 4th. CARB certifies Cenntro’s LS400 as a zero emissions van. FedEx and Brightdrop head to Canada. Car deliveries jammed up in Europe. Everytable raises $25M. Nextbite sued over May layoffs.
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