DASH CHANGES TO THE APP
DoorDash rolled out the biggest changes in the company’s decade of existence, dramatically reshaping how the delivery app works for consumers, merchants and gig workers alike. For consumers, updates include universal search, multiple shopping carts, and SNAP / EBT payments. For merchants the biggest improvements look to be more first-party ordering tools, plus a loyalty/rewards program that’s competes against Square and Toast. The biggest changes are happening on the driver side, as Dashers now have the option to work on an “earn by time” model. Instead of getting paid per completed offer, workers can opt to make a minimum wage (between $10 and $19.50/hr, depending on location) plus tip - how quaint! Another feature “Dash Along the Way” - lets drivers pick a direction they want to head for work, making it more appealing to work for DoorDash on the side. Overall these speak to the gig economy’s battle with worker attrition. The apps may have largely won the post-AB5 war, but a continuously tight labor market means they need to do more to keep dedicated gig workers happy, and make it even easier for less-dedicated workers to throw an hour or two of work towards the platform. The launch of SNAP/EBT online payment on DoorDash for grocery delivery with multiple partners including ALDI, Albertsons, Safeway, Meijer and participating 7-Eleven® stores. DoorDash will offer SNAP recipients access to DashPass membership for free for two months.
Korean BBQ
GEN Restaurant Group (GENK) became the second successful IPO in the restaurant sector. The restaurant stock rose 38.00% within its first hour of trading and traded as high as $19.99 and closed at $15. GENK priced its IPO of 3.6M Class A common shares at $12 per share, which was at the top end of the expected range of $10 to $12. Since the opening of the first restaurant in September of 2011, the chain has grown to 34 company-owned restaurants as of June 14. GENK reported revenue of $43.9M in Q1 up +14.7% YoY and a restaurant-level adjusted EBITDA margin of 19.2%. Revenue per square foot was $890 for the 28 restaurants that were opened for 18 full months prior to December 31, 2022, and revenue per square foot was $899 for the 28 restaurants opened for 18 full months prior to March 31, 2023. The market cap GENK of just under $500M higher valuation than larger restaurant players such as LOCO, PBPB, RRGB.
Will BK New Product Drive traffic?
Just a few months after its initial release in 2022, the premium Italian BK Royal Crispy Chicken Sandwich is back on the Burger King menu, but it will only be available for a short period of time.
The Italian BK Royal Crispy Chicken Sandwich, a relatively recent addition to the menu, with a crispy-fried chicken breast filet on the bottom and marinara sauce and melted mozzarella cheese on top, which Brand Eating said in a prior review "gave a little of richness and creaminess to the sandwich." The site also stated that the marinara sauce "provided a mildly seasoned, sweet and tangy stewed tomato flavor" and that the "chicken was moist inside but not juicy." The sandwich is then made with those contents between two toasted potato buns, which have "a somewhat richer flavor and softer texture than your typical fast food burger bread." The Italian Royal Crispy Chicken from Burger King was decent overall and comparable to the chain's past Italian chicken sandwiches, although Brand Eating noted that the sandwich "could use a bit more cheese or have some parmesan sprinkled in for an added taste note." The added sauce gives it more flavor in comparison to Wendy's current chicken parmesan-style sandwich, but Wendy's version has superior textures and cheese. Prices for the BK Royal Crispy Chicken Sandwich, which is currently back on the menu for a short while, vary, however Chew Boom claimed that it was $5.49 at their neighborhood Burger King. Brand Eating reported that they observed it selling for $6.09. This year, Burger King is bringing back a number of menu items, not just the Italian BK Royal Crispy Chicken Sandwich. The fast food franchise reintroduced the Quad BK Stacker in January. It consists of four beef patties, four slices of American cheese, bacon, and a unique Stacker Sause all sandwiched inside a single sesame seed bun. The Triple BK Stacker and the Quad BK Stacker are both on the BK Stacker menu, which has been available at Burger Kings since 2006. The Quad BK Stacker was only available once again at participating Burger King restaurants, just like the Italian BK Royal Crispy Chicken Sandwich.
