Getir Cuts 2,500 Jobs in Latest Setback
Pumpkin spiced August, Popeye's in China, supermarket sushi
Our hearts go out to anyone affected by today’s big round of cuts at beleaguered super fast deliverer Getir. On the flip side, supermarket sushi servers, Chinese Popeye’s workers, and anyone who can add pumpkin spice to a latte all seem to be having a boom-time.
Getir Cuts 11% of Workforce in Latest Setback
Pumpkin Spice Everything
Chart Time | Sushi in the Supermarket
Popeye’s Long and Oily Road to Chinese Market
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QUICK COMMERCE | Getir Cuts 2,500 Jobs In Latest Retrenchment
Super fast delivery sure seems to be meeting a rather slow demise… let’s call it death by a 1,000 cuts, two and a half times over. This morning Getir announced it was slashing 2,500 jobs, representing about 11% of its workforce. The company says it will continue operating in its home country of Turkey, as well as the U.K., Germany, the Netherlands and the U.S. (where its footprint is essentially just Chicago, New York and Boston.) Just last month the company pulled out of Spain, Italy and Portugal, and it exited France the month prior to that.
The Big Picture: It’s been a big fall from grace for the quick commerce sector, but Getir and Gopuff still hope they can make it where erstwhile competitors like Buyk, Fridgenomore and Cajoo failed. It’s possible that even if these standalone companies also falter, the “15 minute or less” option of some of the more diversified players will be viable in the long run. Delivery Hero recently announced its Dmart super fast delivery subsidiary was profitable, while Instacart and competitors continue to beef up their own offerings. It’s a lot easier to offer a slightly speedier version of what you’re already doing than it is to launch a nationwide network of dark stores while you fight for consumer awareness!
MARKETING | Pumpkin Spice La-La-La I Can’t Hear You!
OK, raise your hand if you’ve never had a pumpkin spice latte. For those of you that share our revulsion, we apologize for this news item: pumpkin spice “season” is starting sooner and sooner. While the flavored coffee drinks were once a solidly cold weather phenomenom, some caffeine pushers now introduce the “limited time” menu offering as soon as the second week of August. (We’re looking at you, Dunkin.) Of the five largest coffee chains in the U.S., Starbucks and Dutch Bros show the most discipline, releasing the iconic drink on August 30th and September 1st respectively.
The Big Picture: When Starbucks invented this concoction way back in 2003, they actually released it in January, as it was meant to slot beside other Christmasy drinks like Eggnog and Peppermint Mocha lattes. But it quickly became a powerhouse, having sold 424 million cups between launch and 2019. As competitors have glommed on to the flavor, it’s seemingly become an arms race to see who can get their PSL out to market soonest. With brands like 7-Eleven offering theirs as early as August 1st, will consumers eventually tire of this sickly sweet novelty drink, or will it just become a permanent part of every menu?
CHART TIME | The Rise of Supermarket Sushi
The WSJ and Axios have stories out tracking the rise of supermarket sushi, with sales up 70% in the past four years. This has absolutely *shocked* the commentariat, who… are maybe just not very good at math? Kroger has 2,700 stores across the country, whereas a “large” sushi chain restaurant like Kura has about 50 American locations. Like most food trends, both American sushi in general, and supermarket sushi in particular, originated in Los Angeles; Kroger inherited this business from its Ralph’s subsidiary. The grocer now pushes sushi delivery via both DoorDash and Uber Eats. Charted above is the sushi restaurant market size, in billions of dollars.
INTERNATIONAL | Popeyes Takes Second Bite At China Market
Call it the second coming of he Shanghai French Concession, Cajun-style fried chicken chain Popeye’s is making another run at the booming Chinese market. The restaurant brand just opened its flagship restaurant in Shanghai’s central Huangpu district, selling a record 1,761 orders on its first day. The business is run by Tims China, the Chinese concessionaire to Tim Hortons, which also operates about 700 coffee shops in the country.
The Big Picture: China is crazy for chicken, with competitor KFC crushing the market with 9,600 locations, plus another 1,000 in the works. KFCs in China are actually the biggest driver of Yum! Brands’ overall growth, alongside continued expansion into digital ordering. Despite that potential, China has been a tough nut to crack for Popeye’s; a previous effort, in cooperation with the group that runs Burger King China and Popeye’s Turkey, faltered. Other multinational chicken-slingers have had trouble in the market too: Philippines’ Jollibee, which has thrived in regions as varied as the United States and Saudi Arabia, found its brand couldn’t hack it in the Middle Kingdom.
A Few Good Links
Domino’s Eurasian franchisee files for bankruptcy as it finalizes exit from Russia. Sweetgreen retools menu to appeal to mid-America. Are restaurant websites obsolete? Subway attracts multiple bidders. Meituan’s KeeTa delivery app expands to more of Hong Kong. EV battery maker Northvolt raises $1.2B, plans North American expansion. Amazon peak season fulfillment fees to arrive 10/15. DoorDash’s chief restaurant advisor program enters third year. SMB ecommerce fulfiller Sendle speeds up delivery times. Shipt names new CTO, CPO. Ship4wd recognized as best SMB freight forwarder. EV van maker GreenPower adds dealers in Texas. 7-Eleven releases new “game day” menu, available on 7NOW. DoorDash highlights student dashers.
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