Food Theory: Taco Bell Is Killing Amazon!

Welcome to Taco Bell Hey, I heard you reduced your trip through wait times we met by over 15 seconds, how did you do that? I can't tell you, but what I can tell you is that we delivered. your order five seconds ago no way hello internet welcome to

food

theory

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so you don't play grandpa with your theorists but hello, has fast

food

changed? Why in my day did going to a fast food restaurant mean playing in a bacteria-infested ball pit? for a while, then you'd eat your food without bothering to wash your hands, and then we'd psychologically forge lifelong loyalty to the restaurant's brand by playing with whatever toy they stuck in our food and not only liked it, but now loved it.

Of course, today, a trip to a fast food restaurant plays out a little differently. They probably won't even let you eat in the dining room, much less jump in a ball pit. There has been a big shift towards more contactless fasting. dining experience over the past year due to kovid and everything has changed, for example, McDonald's is now doing 90 of its US sales on drive thru 90 and digital ordering i.e. orders placed through the restaurant's app or third parties. Apps like Ubereats are also on the rise, for example, Chipotle, whose second-quarter digital sales grew 216 year over year, and Yum Brand, the parent company of KFC Taco Bell and Pizza Hut, reports that each of its brands has had a Record year when it comes to digital ordering, unsurprisingly, quick service restaurants, or QSRs as the industry calls them, have taken note and are making changes to give their customers the contactless experience they want.

Driving efficiency has been a major focus in the area and restaurants are removing all stops to shorten drive-thru wait times for customers, many qsrs are reducing the number of items offered on the menu or even turning to scoreboards. digital menu items that collect data on customer behavior and then use it to predict what you're going to order. It's no joke and those are just a couple of examples of the small changes that are being implemented. Many qsrs are investing in permanent structural modifications to their buildings. Fast-casual restaurants like Chipotle are scrambling to add drive-through lanes and quick-service restaurants that already have drive-throughs are expanding McDonald's is converting many of its single-lane drive-throughs to two lanes as we talk about what Same with KFC, whose next-generation prototype features a second, separate drive-through lane just for mobile vans, but it's Taco Bell.

Of all the restaurants that are really getting the galactic brain moving here first, they are opening mobile

taco

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go locations that eliminate the dining room entirely, resulting in a building that is 47 smaller than a

taco

bell restaurant traditional, but while it's certainly a new concept for Taco Bell drive-through locations have always existed what's the problem? No, what I really want to discuss in today's episode is the first restaurant of its kind that Taco Bell hopes to build in brooklyn park minnesota the franchisee who submitted construction plans to the city earlier this month claims that this experimental taco bell location will be so different that it has never been built anywhere before and I honestly can't disagree with the Theorists, look at this, there is no dining room, there are designated curbside pickup spots. for mobile ordering and has four, count 'em, four vehicle lanes, one lane at the end to accommodate oversized vehicles and three lanes that pass directly below where the kitchen is located on the second floor, orders are brought down to customers on the dumbwaiters.

I admit this building looks an awful lot like a self-service bank and I was hoping orders would be filled via pneumatic tube, but I guess the dumb waiters are cool too. I mean, you can't help but admire how tough taco bell is. I went with this building oh self service ordering is booming four lanes people aren't dining as much boom there are no more customers in the dining room who want a contactless experience boom we will serve you with dumb waiters like we're lowering the bread to the unwashed doughs below, so obviously this is a bold move on the part of taco bell, especially when you consider that I have never been to a taco bell and have seen more than two cars in a row, don't get me wrong, I love me some nachos belgrande. like the next one, but four, four lanes, that's very presumptuous of you, taco bell, I don't know what's going on there in minnesota, but I wouldn't be surprised if toilet sales and plumbing services also need to expand in the last few years.

You get what I'm saying, you get it, taco bell is making you poop or taco bell is playing some other game. Here you see, well, it's easy to dismiss this as just a headline-grabbing experimental restaurant concept that will go the way of the dinosaur once. The pandemic ends and everything returns to normal. I'm here to tell you that taco bell is playing a much bigger game here. It's not just about loading your intestines with the remains of a gordita with crunchy cheese a little faster. There is something else going on. Taco. Bell through this restaurant seeks to not only change fast food with this design but also seeks to change everything in the way we shop and it pains me to say this because I really wanted my son to have the same experience in an infested ball pit of bacteria. had when I was a kid, but the fact of the matter is that there is a storm brewing, my friends, a perfect storm in which public health economics and technology are simultaneously converging to reshape multiple industries at the same time and it is The Taco Bell of all places is the one in the Avant-garde theorists buckle up because when it comes to the future of food, Taco Bell's two-story, four-lane drive-thru monstrosity is just a taste of what's in store. there is in the forecast, so let's take a closer look at the three factors that are contributing to this.

Perfect storm first, fast food will never go back to normal because restaurants don't want things to go back to normal. Think of it this way: a customer who orders a burger at the drive-thru is more valuable to the restaurant than a customer who stays and enjoys their burger in the dining room. It costs money to clean the dining room every day. It costs money to rent out those extra square feet every day. month the dining room needs air conditioning, lighting and decoration is a money pit, but none of those costs apply to a self-service customer who leaves with their food without even stepping foot inside, so it's great to have self-service customers and to go, but getting them is the complicated part or at least it was until last year.

With contactless dining experiences at fast food customers in such high demand, restaurants now find themselves in a curious position: They both want exactly the same thing, less dine-in and more takeout and drive-thru, so while we watch Quick service restaurants do everything they can to provide. There are more and more vehicle lanes, we must keep in mind that it is as much about giving the customer what they want as it is about enticing customers to drive even long after the pandemic disappears. Now, the second factor that is contributing to the Storm-powered third-party delivery apps are booming, which is allowing ghost kitchens to thrive.

We've already covered this topic in a recent video, so definitely go watch our Mr Beast Burger Ghost Kitchen episode if you haven't already, but here's the lowdown. Creepy ghost kitchens, if a restaurant has staff and a commercial kitchen that is underutilized, they can become a ghost kitchen and prepare menu items for other restaurants at the lowest level, the ghost kitchen gets a cut for preparing the food and the Customer gets the delicious food professionally. cooked food they wanted, even if it's coming from a restaurant they maybe weren't expecting Now, the rise of ghost kitchens is great news for this extravagant new taco bell restaurant because they couldn't have a more ideal building for this type of setup Then everything is designed to fulfill curbside and drive-thru pickup orders as efficiently as possible, making it the dream scenario for food delivery drivers and becoming a ghost kitchen or even sharing your kitchen space with another restaurant, the Brooklyn Park Taco Bell location could mitigate a lot of the risk, think of it as if this taco bell's lowest performing time of day was breakfast, to protect against this they could partner with a restaurant that works well in the morning, like Starbucks or Krispy Kreme, that way its kitchen on the second floor and four units.

The through lanes operate at full capacity morning, noon and night and it is more important than ever that the qsrs operate at maximum capacity because it is estimated that by 2022 70 of all delivery orders will be placed through third-party apps such as ubereats and postmates and This is a double-edged sword. True third-party apps bring more customers to the restaurant, but it can come at a high cost. For example, last year, restaurant consultant Giuseppe Bedlamenti posted on Facebook a Grub Hub receipt from an anonymous restaurant he works at. After fees and commissions, that restaurant's $1,042 in sales became just $376, not even enough to cover the cost of the meal, according to the battle amenti awarded, restaurants don't have to sign up with third-party delivery apps , but if 70 of customers do order through apps it's a bit like Sandwell, the restaurant doesn't have to stay in business either now some cities have stepped in with regulations that cap fees for third-party delivery apps, usually around 15 or so, but there are many areas with no such regulations and restaurants do not have the leverage to negotiate better terms with delivery apps in the midst of a pandemic like this, which brings us to the third factor in this storm perfect that will permanently change fast food for good restaurants.

The way to take on delivery apps and join forces is perhaps the best way to do it now. Possibly my favorite thing about Taco Bell's park concept in Brooklyn, other than the fact that it appears to have parking for 10,000 bikes out front, is the ease with which the building can scale, more kitchen space needs to be added because you have partnered with many other restaurants and now your shared kitchen is basically a huge self-service food court, don't worry, just extend your kitchen space a little more, and guess what? That creates more room for another drive-through lane underneath that will accommodate the influx of new orders, and if enough restaurants start delivering from one location, then delivery costs should come down a lot, not just all the restaurants sharing kitchens.

They will be able to collectively negotiate better terms with the app, but in

theory

the delivery driver could pick up multiple orders in one trip along the same route. Suddenly, instead of five drivers making five deliveries from five different restaurants, now a single driver can collect the five orders. at the same time in the same access window and if this tour through the food court grows enough, they could start their own delivery app or even reject third-party delivery apps altogether, so taco bell was definitely thinking out of bread with his restaurant in Brooklyn Park. concept and ultimately I think they are above or should I say below, the self-service concept will catch on one way or another after all, those who don't like efficiency, other business companies could implement this concept with the same ease.

Use it too because at the end of the day, Taco Bell designed a contactless distribution center capable of accommodating personal vehicles and that's a big deal because it's not just fast food customers who want efficient contactless options, all types of customers want those things, that's why supermarkets, home improvement centers and companies like Amazon have been investing outrageous sums of money to solve the logistical nightmare called last mile delivery. Last mile delivery refers to the final step of the delivery process when the product travels from the warehouse to its final destination. customer's home or a retail store shelf, say, for example, you make the wise decision to purchase a Theory Ware zip-up hoodie, congratulations on your decisionsin life, by the way, you'll look cool in that thing now, after the hoodie is made, a long trip to a distribution center begins even though the trip is so long, this part of the trip is quite economical because that hoodie can be shipped in bulk with thousands of other hoodies, as well as other amazing theoretical wear products that, surprisingly, would look great on your Now that I think about it, when your hoodie arrives at the center of Distribution is when things get complicated, not to mention expensive, because those thousand notional products must now go separate ways to be delivered to a thousand different notionals in the area, multiple trucks and schedules. and routes must be coordinated, which is why a whopping 53 percent of shipping costs go to this so-called last mile, even though it represents a mere fraction of the total distance that hoodie had to travel overall.

Meanwhile, avoid last mile delivery altogether. Self-service customers drive directly to the restaurant, also known as the distribution center, using their own vehicle, their own gas, and their own time, and pick up the product themselves. They forget the last kilometer. Now it becomes more like the last inch. Why do customers do it? It's really no problem, their rear drive-throughs are conveniently located along the routes they are already traveling, meaning they can get the product anytime whenever they want. It is beneficial for all fast food products and with the right type of building, it can be beneficial for all other types of products.

Well, then the drive-thru yes, the humble drive-through could actually be the distribution solution elegant and economical that everyone has been looking for and has been under our noses all the time. Imagine walking into the nearest taco bell and ordering a chalupa and a Krispy Kreme donut. and also everything that is on your shopping list for the week, there is no delivery process to speak of, so taco bell can offer you all kinds of products that Amazon can't or won't deliver ice cream, eggs, alcohol when you lived in California Amazon. I even refused to send light bulbs to the house.

I can't believe I'm about to say the phrase, but Taco Bell can meet my needs in a way Amazon never could. A building that allows customers to pick up their orders themselves or hire them. someone else picking it up could alleviate the whole problem until of course drones become a thing and solve last mile delivery forever, so in the end I just have to say this no matter how silly the new design seems of taco bell on paper. really good when it comes to the future of shopping as we know it, so it looks good for the future of shopping, but you know what looks good for the future of learning?

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