The Friday Report: August 6, 2021

Amazon Continues Its Ongoing Investments in Future Growth

Throughout the COVID-19 pandemic, supply chain disruption has erupted and waned.  As businesses were in lockdown, production was impacted, and goods were not able to reach retail and consumer destinations.  Amazon still prevailed, however even though it also experienced pressure in its supply chains.

Amazon took advantage of Prime Day this year to push goods out of its over-capacity warehouses to make way for fresh product.  Prime Day served to aid in pulling goods through the distribution chains, resulting in fewer out-of-stock issues.

With its continued investment in its fulfillment network as well as in other pivotal areas of its business, Amazon has also forward purchased middle and last mile assets.  This is in preparation of its Prime Delivery expansion, offering same day delivery to the masses.  Multi-year investments continue to be the norm with Amazon, ensuring its ongoing commitment to handle increased demand in future years.

Amazon also continues to increase its workforce along with facilities, adding more huge fulfillment centers in strategically placed locations.

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Dough Rising?  Panera + Caribou Coffee + Einstein Bros. Bagels to Power Fast Casual

With its new acquisitions of Caribou Coffee and Einstein Bros. Bagels, Panera Brands boasts a “broad omnichannel retail network” making the merger highly desirable.  In the industry, Panera is known for its:

• Robust digital infrastructure
• Popular customer loyalty program
• Strong pipeline in food innovation
• Top notch supply chain
• Accessibility to well-funded franchise owners

With Panera Bread’s 2,100 locations, Einstein Bros. Bagels’ 1,005 locations and the 700 Caribou Coffee locations across the United States, the three brands will unite under the Panera Brands identity.

For more information, please continue reading here.

Will Consumers Miss McDonald’s Brown Paper Bags?

Chalk up another issue to the pandemic.  Apparently, McDonald’s has begun to notify restaurant franchise owners that it is experiencing a shortage of brown paper bags.  Over the past year, customers tended to eat their take-out meals at home instead of savoring the ambiance of McDonald’s restaurant interiors.  In addition, employees reported that more customers requested bags even when they ate in the restaurants.

Instead, McDonald’s is now advising franchise owners to serve food on trays instead of providing it to customers in bags.  Approximately 81 percent of the restaurant businesses in the twelve-month period that ended June 30^th was from take-out orders.  According to the NPD Group, a consumer research organization, this represents an 18 percent increase over that of the previous year.

Restaurant workers have found it difficult to serve the meals on trays as take out in bags has been so overwhelmingly popular for the past year.

For more information, please continue reading here.