SBUX
Starbucks (SBUX) said Wednesday it plans to sell Seattle’s Best Coffee brand to Nestlé (NSRGF). The terms of the deal were not disclosed. The company said the move will further strengthen the Global Coffee Alliance by allowing both companies to focus on their core strengths. Since forming the Global Coffee Alliance in 2018, Starbucks said that the companies have introduced a wide range of premium coffee products to new markets. Through the Global Coffee Alliance, the companies will continue to work closely together to develop new, innovative products and go-to-market strategies to amplify the reach and expand the unique experience of the Starbucks brand locally and globally. The transaction is expected to close by the end of 2022.
JACK
Who needs a dining room anymore?
JACK announced opening a new location in Tulsa, Oklahoma, in a test of a new off-premise-only restaurant concept that could be expanded. The company said the restaurant prototype was designed to meet the continued increasing demand for drive-thru service and digital ordering. The small-sized location features a double y-lane drive-thru, a walk-up window for ordering, dual assembly kitchens, and a dedicated pick-up window for mobile and third-party delivery orders. "The goal of the new prototype is to reduce buildout costs by around 20% while also increasing real estate flexibility. The new model is designed for free-standing locations but can be adapted to fit in various spaces such as C-stores, travel plazas, and end-cap locations."
DNUT and MCD?
Definitely an interesting move from MCD
Krispy Kreme gained on the news that its products will be tested at a number of McDonald’s (MCD) locations. DNUT said that “a small operations test of select Krispy Kreme doughnuts” will begin on October 26 at nine restaurants in the Louisville metro area. The Original Glazed chocolate iced with sprinkles and raspberry-filled donuts will be included in the tests and will be available at all hours of operation. “McDonald’s is always looking for ways to give our fans more of what they crave, and we often conduct tests to inform future menu decisions,” the burger chain said in a joint statement alongside Krispy Kreme (DNUT). “This small-scale test will help us understand how offering new bakery items like Krispy Kreme could impact operations in our restaurants.”
Just-eat
Order growth continues to slow.
Just Eat Takeaway.com NV said Wednesday that 3Q22 orders fell -11.5% versus -12.5% in 2Q22. The 2-year stack slowed from +25% to +13%. The company is sticking to the guidance previously given for the full year. The gross transaction value for the quarter rose 2% to 6.92 billion euros ($6.82 billion) from EUR6.80 billion, driven by a higher average transaction value and positive foreign exchange movements. North American 3Q22 orders declined -13.5% versus -15.8% in 2Q22, and the 2-year stack slowed sequentially from +2% in 2Q22 to -6% in 3Q22.
