People won’t care how you deliver the food.

There has been a lot of hype about food delivery over the past quarter. Longer, but it seems to be concentrated hype right now. Leading delivery brand, Postmates got a big investment, celebrity chef David Chang’s delivery service is growing. Brands are creating services and partnerships to optimize the way they deliver. UberEats is rolling out across the country. Jonathan Maze is pondering whether to-go and delivery is the savior of casual dining. The hue and cry for drone delivery is growing louder every day.

There is a battle raging to deliver consumers their food. And according to new research by Mintel, everybody is winning. 9 of 10 say delivery services make life more convenient. What does that tell you? People weren’t clamoring for a new way to get their pizza delivered. The high school kid dropping it off for a small tip worked just fine. The ask from consumers is for more restaurants and cuisines to be available by delivery. Unless you live in a handful of metros, that wasn’t a reality until this burst of services came on the scene.

65% of respondents said going to a restaurant was more fun than ordering in.

Don’t misunderstand the trend. Delivery is not the replacement for dining out. Delivery is the addition of an occasion without leaving home. Part of this is the same trend that was driving fast casual to overtake casual dining. Speed and convenience are king. Cater to my cravings and make it faster when I need it to be. In the same Mintel study, 65% of respondents said going to a restaurant was more fun than ordering in. Guess what – just about that same amount (63%) said delivery is more convenient than dining out. Surprise!

People aren’t saying they’re loyal to brands that deliver (though there is a subculture of people living solely off of Postmates and Seamless). These services may be new, but the problem is old. People are simply telling us that they are still looking for convenience.

There’s some people at the confluence of the restaurant industry and the tech industry who are looking at this as a disruption to restaurants. It’s actually the extraction of value that cuts margins for operators. Margins that are already thin and getting thinner with commodity prices, new types of competitors and laws adding salary pressure.

Brands will need to study the cost of any service they partner with to deliver their product. If there is an added service cost to the consumer, how does it affect the value proposition of the brand? Does your snack menu suddenly compete with entree prices elsewhere?

Beyond price, how does the service bring the food? Does it arrive in the same condition as when it left the kitchen? Long term, this can damage loyalty and erode occasions. There is a reason pizza is a traditional top-delivered food. It travels extremely well.

In the end, it doesn’t matter which pizza chain cracks drone delivery first. For a short while, people will order Domino’s by tweeting a pizza slice and drone emojis for the novelty. If it’s incrementally faster, drone delivery will survive. If it’s not any faster, they’ll go back to the old fashioned way – and just tweet the pizza slice emoji.

Eventually, there will be a shakeout. Delivery services will fold and consolidate. But restaurants that play it smart will remain. “Innovations” in delivery are a fad, unless they work.

Interview With Gluten-Free Flour Brand, Blends by Orly

gluten free, flour, cpg, grocery, brand
Orly Gottesman has figured out how to sell a niche product to an audience in need

At Food & Restaurant Marketing, we are obsessed with understanding the type of insights that allow brands to break through a crowded category like the gluten-free industry. This 3.2 billion dollar industry (Statista 2016) demands brands to take unique approaches to positioning their products. With almost 30% of all adults in the U.S. trying to avoid gluten, we wanted to talk with someone who is intimately involved with the industry to discover insights about this ever-growing audience and what drives them to consider gluten-free products.

Blends by Orly

Orly Gottesman, a Le Cordon Bleu graduate, discovered her passion for baking while at culinary school. During that same time, Orly’s husband Josh discovered he had celiac disease. Josh, who grew up in the baking and restaurant business, thought his life was over. He’d never be able to enjoy a bagel again. Orly saw an opportunity to focus her studies on gluten-free and worked with the head chef of the baking program to conduct an independent study around gluten-free baking.

From there, Orly set out to create the highest quality gluten-free flour blends for those that love baking. Blends by Orly launched in August 2014 and since that time, Orly has been navigating her brand through a rapidly growing industry.

I recently sat down with Orly over Skype to learn more about her business and customers.

AB: What have you learned about your current audience that made you take a different look at how you thought about your brand?

OG: First, we learned that this is a very female-focused product. For a demo, we would bake a whole bunch of product, mostly cookies. Women would love them and say, “oh wow that’s a really great idea to make cookies with this blend.” Men would come over and say, “where can I buy these?” Then we’d tell them that actually the product is the flour and you actually have to bake them. They’d look at me and say, “oh, I don’t bake.” Even a man who had three children with celiac walked up to me, loved the cookies and said, “not for me.”

I find that I’m wasting my time talking to men. Even the buyers at supermarkets, the female buyers always get it more than the male buyers, unless they are a chef.

The other key element I’ve found is that the blends don’t sell as well in cities or densely populated areas like Manhattan. Kitchens are tiny and people generally won’t bake if they feel like they don’t have enough space in their kitchen. We sell much better in suburban areas. People that do a lot of cooking and entertaining are really our sweet spot in terms of a target audience. Also, it’s a higher priced product, so it’s a given that we are seeing higher income customers interested in our product.

AB: How large is the gluten-free business and how many people suffer from celiac disease?

OG: 1% of the total population suffer from celiac disease. Many of my customers actually don’t have celiac disease. They do, though, find themselves sensitive to gluten or have other autoimmune diseases. Gluten can cause inflammation, so many people get off gluten to support an anti-inflammatory diet. The good thing about my blends is that they provide options for dietary restrictions like a sugar-free, gluten-free diet.

AB: Any opportunities or feedback from your customers on new products?

OG: I have recently launched a kosher baking mix for Challah in three different flavors: traditional, chocolate chip, and poppyseed & onion. That was very specific and the opportunity was clear in terms of bringing a new product to the market that doesn’t exist.

I’m also thinking a lot about distributing a pre-baked gluten free bread product. Blends are great for a very specific audience. If I’m going to expand, I think it’ll have to be with ready-made products. I don’t want to come out with just another cake mix.

AB: How are you attracting the audience that is considering a gluten-free diet?

OG: We are beginning to send nutritionists promotional material. Nutritionists are the first ones a doctor sends them to if they need to alter their diet. For example, I was diagnosed with hypoglycemia and I learned I was eating too much sugar and gluten. These nutritionists will recommend easing up on the gluten. They aren’t going to recommend trying a gluten- free brownie mix. They’re going to recommend finding a wholesome gluten-free flour like one of my blends. Some of the specialty markets we are in will have nutritionists on site, so we talk to them and let them know about our product. We’re starting to consider the right time to put together a plan for marketing.

AB: What was your initial strategy for distribution and how has that changed over time?

OG: Starting out it was “the chicken or the egg” scenario. We started out doing all the distribution ourselves. Obviously, you’re not going to find a distributor to take you on initially if you don’t have accounts, and then a lot of stores don’t want to take you unless you have a distributor. Our initial strategy was to just pound the pavement and go to stores that would allow us to distribute directly to them. It was truly door to door sales and cold calling.

Once we had enough stores with our product, we then decided to go to the distributors and show them what we accomplished and why we are a great product that people need. We got a distributor on board with us and focused only on New York and New Jersey. We took this same model of starting out by self-distributing in Chicago and then moved to a local distributor there as well as on the West Coast. But it’s a very long process.

AB: What’s the biggest challenge you are facing right now with distribution?

OG: We realized we really need brokers. We were a little late in the game here, but we’re learning fast that the brokers are the ones who get your product moving off the shelves and keep the orders coming.

If you’re interested in learning more about Blends by Orly, please check out her website where you can learn more about her gluten-free flour blends and order product: http://blendsbyorly.com/