The King Delivers: Burger King’s New Delivery Service

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The world of fast food has always been about convenience for customers in terms of pricing, locations, accessibility, etc. Burger King has decided to take it a step further by introducing a delivery service in major U.S. Metropolitan areas. The service is now offered in Chicago, Los Angeles, and San Francisco from 11 a.m. until 10 p.m. Customers must order a minimum of $10 worth of food to be eligible for the delivery service.

Ordering food for delivery has been trending for quite some time now thanks to websites like Grub Hub. Although delivery service has been around for many years at places like Pizza Hut and Dominos, it has risen in popularity with more restaurants offering it as well as providing convenient ways of ordering such as via the phone, Internet, or mobile app.  Out of the major fast food restaurants (McDonalds, Burger King, Taco Bell, Subway, Wendy’s), Burger King is the first one to test the market for delivery service.

Currently, Burger King is in the maturity stage of its product life cycle because its competitors are well established and they are focused on innovation. They are forecasting a positive return for their delivery service and hope to be the trendsetters among other fast food giants. The very popular drive-thru option was introduced in 1975 at both Burger King and McDonalds and became a standard at fast food restaurants. McDonalds is clearly untouchable in terms of competition with sales four times greater than Burger King, but Burger King’s delivery service strategy can help them get a step ahead and be the first company to introduce it.

I believe that Burger King is going to have some success with their delivery service with their already established, loyal customers, but will not have a lot of impact on irregular consumers. Although America has always been a nation of fast food, the new trend is eating healthy and being fit. Healthy lifestyles are more and more promoted and gym memberships are on the rise. Burger King’s delivery service does not align with the new trend, but instead makes it easier for people to eat unhealthy.

A way that the company can utilize the delivery service is to introduce healthier menu options. They can then combine the two ideas by promoting the delivery of new salads or other products. Other than that, I do not see this service surviving in the long run. I also do not think that McDonalds will invest in it because if deemed to be successful, then the number one fast food chain would have tried it a lot sooner.

Although Burger King’s delivery service is in the trial stage, they are still following their commitment to convenience for customers. May the odds be ever in their favor.

 

Sources:

http://www.huffingtonpost.com/2013/04/23/burger-king-delivery-chic_n_3141940.html

http://www.businessinsider.com/the-most-popular-fast-food-restaurants-in-america-2012-7?op=1

http://www.bk.com/en/us/company-info/about-bk.html

http://www.mcdonalds.com/us/en/our_story/our_history.html

 

 

 

 

 

 

(Virtual) Food For Thought: Virtual Supermarkets

During this day and age, there are two main themes behind our technological advances as a human race: innovation and convenience. Almost everything is available via the Internet and accessible with our computers or smart phones. We can shop for clothes, order dinner, pay our bills, and do a lot more using our handheld devices. The newest addition to our already impressive lineup is a virtual supermarket. I know what you’re wondering, does this mean I will have to eat virtual food? The answer is no, virtual supermarkets have the same end goal as ordinary grocery stores: you get your produce in your fridge as expected.

Virtual supermarkets started in Japan and South Korea by Tesco Homeplus, a British grocery company. They are strategically located in subway stations alongside the walls and are set up as regular grocery stores, but instead of actual products, there are pictures of the items with a QR code beneath them. Users scan the QR codes with their smart phones and add the items to a virtual shopping cart. Once all of the products are in the cart, the shopper places the order and is charged through their credit card. The groceries then arrive at the person’s doorstep the next day. Virtual supermarkets eliminate the hassle of actually visiting a grocery store, physically carrying the items, and they also save a lot of time for shoppers.

The U.S. has caught on to the craze by introducing virtual supermarkets in Chicago, Boston, New York, and other major metropolitan areas. Peapod, a U.S. grocery company, has taken the initiative by setting up  virtual supermarkets in subway stations just like Japan and South Korea. So far, there has been positive feedback from the younger generation, but  older people prefer to physically visit the stores. This shows that we are truly in an age of innovation and convenience, or that we have become extremely lazy.

An advantage that virtual supermarkets have from an operations management perspective is the management of inventory. By not having the inventory physically present, the products won’t sit on the shelves and companies can place orders for certain items based on the online demand, eliminating backlog.

I believe that having virtual supermarkets is a step forward in the right direction, but this step lacks some benefits that are present when physically being in a store. When I was younger, I used to always accompany my mom to the grocery store and she would tell me how to pick out the ripe fruits, or how to tell similar vegetables apart. She knew exactly what she was getting by touching and feeling the products. Another missing component to virtual grocery shopping is taste-testing the food. Many times we are not certain about what to buy and by trying a sample, we decide whether or not to purchase the product. That is one advantage that places like Costco will have over virtual supermarkets.

Virtual supermarkets define innovation and convenience, but are not for everyone. Would you ever consider using one, and if so, do you see virtual supermarkets replacing physical grocery stores in the future?

Sources:

http://www.apartmenttherapy.com/virtual-grocery-shopping-and-v-158354

http://www.huffingtonpost.com/2012/10/01/peapod-virtual-grocery-st_n_1929756.html

http://www.zdnet.com/virtual-supermarket-shopping-with-a-smartphone-4010022941/