TL;DR
Amazon's purchase of Whole Foods may have implications for quick-service restaurants, as it blurs the lines between restaurants, grocers, and convenience stores. The deal could lead to new delivery meal kits, increasing pressure on brands to differentiate themselves.
When Amazon announced that it purchased Whole Foods in June, the restaurant industry started a conversation surrounding what the $13.7 billion merger will mean for brands going forward. And according to an article in QSR Magazine, people are still unsure as to how the move will play out over time.
On one hand, the lines are blurring between restaurants, grocers and convenience stores. However, there are a number of industry experts who say this deal makes perfect sense for both Amazon and Whole Foods. The two companies can bring together their reputations for quick delivery and high-quality products, ultimately creating new delivery meal kits. And that doesn’t mean that the merger has to take away business from restaurant concepts.
Scott Iversen, vice president of marketing for Toppers Pizza, told QSR, “More and more restaurants are getting into the delivery space because the customer is demanding ease and convenience of prepared foods at home. And with more and more restaurants getting into delivery, it puts a lot of fun pressure on brands to really differentiate themselves in the products and services they offer. This is a shift in the way people use home delivery.”
Iverson adds that in order to stay ahead of the competition, brands will have to work harder to differentiate themselves and bring more customers through their doors.
In this story
This story was originally published in 1851 Franchise on July 20, 2017. Burnaze summarizes and links to the original reporting.
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