Restaurant Industry Traffic
For the first three weeks of July Casual Dining sales have declined (-2.41%) versus down (-0.63%) in June. WoW traffic improved by 69bps.
For the first three weeks of July QSR sales have increased increased +2.16% versus up 2.14% in June. WoW traffic improved by 14bps.
CONSUMABLES MONTHLY DIGEST
We are hosting our monthly Consumables Digest call today at 2 PM ET. We will recap some of our Best Ideas, address the top inbounds during the month, revisit position monitor changes, and discuss the latest questions on MCD, CMG, DPZ, DASH, SYY
Send us your questions ahead of time to .
EVENT DETAILS:
Date & Time: Wednesday, July 26th, at 2 PM ET.
Webcast & Slides: CLICK HERE (Refresh shortly before the call).
Takeaway (GRUB)
The troubles continues with the company announcing that Brent Wissink will be stepping down as CFO at the Company's AMG in May 2024. This follows Grubhub CEO Adam DeWitt to stepped down in March 2023 and was replaced by Howard Migdal, CEO of SkipTheDishes. Grubhub business is declining with no obvious signs of stabilization. The path forward is murky given the dominance of DASH and UBER, its not surprising there is no buyers of the business.
Just Eat North America GTV decreased by 12% (vs -11.3% in March) to €5.1 billion in H1 2023, mainly caused by lower Order volumes, which were partly offset by a higher ATV. Adjusted EBITDA turned positive and amounted to €51 million in H1 2023, from minus €4 million in H1 2022, despite the ongoing headwind to segment profitability from fee caps in New York City. The company continues to actively exploring a partial or full sale of Grubhub, we have appointed a new CEO, are realizing US$30 million+ run-rate savings from 2024 onwards through a restructuring and have established a path to cash flow breakeven at Grubhub, excluding any positive impact of a potential New York City fee cap amendment.
Grubhub is relaunching its Grubhub+ membership program with additional perks and features to provide more value to its customers. The program, which costs $9.99 per month, will now offer a 5% credit on pickup orders that can be used for future orders, lower service fees (though exact savings were not disclosed), and rewards for passing certain ordering milestones. Grubhub+ members will also access month-long savings events and a partnership with Shell that provides a 5-cent per gallon discount through the Fuels Rewards program. The decision to enhance the program came from a desire to show more reciprocity to loyal customers, who tend to order more frequently than non-members. The company wants to create a more personalized experience for members and give them greater recognition for their loyalty, celebrating their ordering milestones and offering exclusive access. By offering more benefits for both delivery and pickup orders, Grubhub aims to align itself with competitors like DoorDash's DashPass and Uber Eats' Uber One, which offer similar perks for their respective membership programs, each priced at $9.99 per month. Grubhub sees reward and recognition as essential elements of loyalty programs and is investing in enhancing these aspects to attract and retain customers in an increasingly competitive food delivery market.
