Chicago, Reporter, WGN discussed on Wintrust Business Lunch with Steve Bertrand
She joins us now on WGN radio to talk a little bit about the new entries in the food delivery space, Heather John Williams. Welcome to the show. How are you? Good. How are you? Good your pieces. Headline the delivery wars. It starts with the story of somebody getting food delivered in Anchorage Alaska, which is ambitious isn't it? Yeah. So these services that really started in the big cities, including Chicago, grab house located here have really spread it all across the country in two suburbs. And smaller cities as they've tried to establish more gross to please their investors, and as more people consumers have gotten interested in these services. So we looked at both personally delivery and restaurant delivery and explored some of the stick gross happening here in the challenges economically for these companies, what do you mean challenges? So it is very expensive to do this and both for the restaurants and grocers who hire these third party services to perform this service for them. So again, like the hub post meets insecure to the world, they take a hefty cut of the of the profits from the service to. To to actually do the delivery. So to actually run online portal to hire the drivers Connie driver shuttle this around, but then there are also costs forty services to form that and that's why they're really trying to kill gross to their investors. So they can keep attracting investments to keep these services going. And then of course, there's cost to users. So you and me have to pay for this. So this is not free. Even though a lot of them are rank promotions. Eventually you are going to pay a fee for these services. We're talking about restaurants livery, and or grocery store delivery. Yeah. And what's the biggest growth is hit in the grocery store delivery. Or is it because some restaurants have traditionally delivered anyway pizza places stuff like that. Jimmy John's, but then there are other services that will pick up the food from restaurants and deliver it to you, right? Yeah. So that that's again, the grub pushed me type model and what they're doing is. They're bringing a lot more variety of delivery to two people. So traditionally like, you said, it was pizza places Chinese food sandwiches, really simple things to transport where you know, clearly established how you package up these goods and get people's homes. Now, this is adding a whole new complexity to it when you're delivering. Pasta salad or soup or milk. Shakes things that are complicated to deliver. The restaurants really have to spend time investing in that. And make sure it's actually worth it for them to do it. I'm not even sure it's always worth it for the brand sake. We had the two best hamburgers. Made in Chicago. According to a readers poll, we're actually a reporter tasted seventy two different hamburgers. In Chicago over the course of a month. And then he did a big story in the Tribune about who is first place in second place. We had those stores deliver their burgers to us. And with the reporter, we all sampled the best burgers in Chicago, which I'm sure are fantastic. But by the time, they got here, and we ate them. They weren't as good as they would have been in the restaurant. And now my experience with that with that brand is not as good as it would've been otherwise, you know. Yeah. And that's real risk for these companies when they hire these third party services to perform the delivery, it's kind of out of their hands. Once it leaves there. Their restaurant today. You know, they tried to do their best in terms of investing in good packaging to keep it hot or keep a cold or spelling. But once it leaves, there's only so much. They can do at often. There are complaints about movie arriving cold, and it may be well, that's another matter entirely. But maybe in the end of the day consumers will say I'm willing to pay more for food that is imperfect for convenience sake. There's no bad guy here if you're willing to do that more power to you. But I'm wondering if in fact, these delivery schemes will exist five years from now is this sort of testing period, or is this the way it's going to be forever and ever do you think? Is definitely a testing period. I think the question more is how many delivery services will there be rather than how will there be delivery services? All there's clearly a market for this people really want, the convenience of getting delivery, groceries and restaurants delivery to their home. They're busy to stress. They just want to be home with their families and the little time that they have. And they want the service bringing it to them. The question is though there's so many different services now all competing for market share. And it really we are in a period where plus testing learning, but eventually the probably some consolidation of these companies somewhere. Someone's mother is saying, but you're losing the value and the art of food preparation kids. I hate to see it go this way, you know. Yeah. And there certainly is going to be long term impacts of this either. Will we will we start to lose preparation skills? Well, we also, you know, generally restaurant food tends to be higher fat and higher calorie salt. Yeah. So the question is will, you know, some analysts say that people are using more leftovers out of their delivery. So they're taking taking one delivery turning into multiple meals. Maybe combining it with other foods that they prepare on their own. That's kind of a mash up that we're starting to see as the as. As a matter of matter of fact of life, but certainly for younger consumers who just grow up on this stuff. They they might not learn how to cook until they're much older. And then it'll be too late. And then they wish they had those recipes and skills, but no, they won't said someone's mother somewhere. Food food and farm reporter at the Wall Street Journal. It's interesting piece today an interesting space to follow had the thanks for your time this afternoon, thanks so much. You betcha. It's twelve thirty one almost let's do the news now. And by that, I mean, let's let Eric rung. Do the news now sponsored by Linden chimney and fireplace. Eric what's going on? Thank you drawn. The Illinois supreme court has rejected the prosecutor's bid to resentenced former Chicago police officer Jason Van Dyke in the murder of seventeen year old the quantum McDonald? The thought the six year nine month sentence for the on-duty killing was too lenient. And a statement Van Dyke attorney said they were pleased with the decision and said, they hope it will strike a fatal blow to the political exploitation of the death of McDonald. The woman who climbed the base of the statue of liberty last July fourth to protest the separation of families at the Mexican border has been sentenced to five years probation and two hundred hours of community service. Prosecutors wanted a least a year in jail the four hour holiday demonstrate. Forced the evacuation of about forty three hundred people from the statue grounds. Striking Chicago Symphony Orchestra musicians. Got some high profile support today as the organization cancels more concerts, cast and crew members from Hamilton a Bronx tale, Chicago fire and the second city and more joined the musicians on the picket line, the musicians are also planning.