Two titans of the Russian foodtech, aggregators and Delivery Club “Yandex. Food”, are working on launching the delivery of one of the most complex and capricious categories — coffee cups. Since the beginning of 2019, the services are testing the delivery of hot drinks, together with a network coffee shops. “Yandex. Food” called as partners of the British franchajzingovogo Costa Coffee, Delivery Club is the largest network of coffee houses “Shokoladnitsa” (also includes a network “Coffee house”). Forbes looked at an emerging and promising market segment.
Coffee walking distance
A pioneer in the delivery of hot drinks dispensers via aggregators in Russia was McDonald’s. Since February of this year the network delivers the tea and coffee cups (along with juices and sodas) in nine cities across the country through “Yandex. Food.” Contract with McDonald’s went to the aggregator “Yandex” following the acquisition of the Russian Uber Eats in may of 2018. This allowed to overtake competitor: the representative of the Delivery Club at that time recognized that the delivery of hot drinks at the service will only appear after a “thorough tests”.
Parallel To “Yandex. Food” turned to one operator — British coffee chain Costa Coffee, which in Russia is developing a restaurant holding “Rosinter”. “At the time of similar projects on the market yet was not, — said the representative of Rosinter. Testing lasts for several months, we are working on the speed and quality of delivery.” Just participate in the test, seven coffee houses in the center of Moscow, in the shopping and business centers. Through the app you can place an order, choosing from more than 40 varieties of coffee drinks — Americano, cappuccino, latte etc.
The first results of the experiment are not disclosed. However, the share of orders from coffee is small, recognizes the representative of Costa Coffee. It’s all about the novelty of the services and features of the product: coffee to cool or splash of the way. For this delivery radius (distance from the institution to the recipient) shall not exceed 800-1000 metres or 10-12 minutes walking distance, says a source familiar with terms of the contract Costa Coffee and “Yandex. Food.” In February, the representative aggregator “Yandex” noted that the average delivery time coffee from McDonald’s also was about 12 minutes.
The service plans to run a section of “Coffee” in the app in the near future. “Icon will be located above the ribbon restaurants is now the category “Sushi”, “Burgers”, etc.,” explains a company representative. The section will be collected by the restaurants, which deliver coffee, Costa Coffe is just one of the partners.
Experience in the delivery of coffee at Costa Coffee are abroad, like Irina Avrutskaya, founder Like4Like Foodservice Consulting and curator of the direction “Marketing” in Novikov School. Private couriers network in several European countries deliver drinks at a nearby business centers. “A few years ago we thought to launch services and Russia, but faced with the fact that the campaign for coffee — not so much need in the product itself, as the ability of people to escape from office routine. In addition, many modern offices are equipped with coffee machines” — describes the situation of five years ago Avrutskaya, at that time Manager of Rosinter. The expert admits that consumer habits could change.
“Yandex. Food” sees the relevance of the topics delivery of coffee another motivation — couriers save the customers from problems with the transportation of hot product. “People often take coffee to go on the way to work, but in the subway or bus with hot glass is not always convenient,” explains a representative of the service need for the introduction of new services.
Downloads like desserts
What could be better than coffee? Only coffee and dessert, consider managers, the main competitor “Yandex. Food” — Delivery Club. Aggregator, shareholder is Mail.ru Group, trying to keep up: working with McDonald’s delivery and coffee service started late, than “Yandex. Food”, however, the share of orders already quite high. “The demand for coffee by volume corresponds to the demand for other dishes more familiar to users of delivery, such as, desserts. But this does not mean that coffee can only be ordered along with the sweet,” — said the representative of the Delivery. Specific numbers aggregator does not disclose, but the prospects services evaluates very positively.
As found Forbes, testing and delivery coffee Delivery Club spends even longer competitor — December 2018 — along with the largest coffeehouse chain in the group “chocolate” (about 500 institutions around the country, participated in the test, 20 in Moscow), with which the aggregator exclusive contract. However, the first tests have not yielded the expected results, recognizes the representative of “Chocolate girl”: every fourth drink “came” bottled.
The key problem is a method of transporting hot liquids, which threatens to damage the presentation of the product and decrease customer loyalty. To prevent spilling any liquid, McDonald’s, for example, uses only a special stand, designed for hot drinks. “[They] covered with special black caps with a closed drinking spout. The cover is also designed only for hot drinks in delivery. Steam holes are covered with a special sticker/label. Statistics for shed, cold hot drinks is missing”, — said the representative of the Forbes network.
“Black coffee, perhaps, will survive transportation, but a cappuccino or latte in 10 minutes turn into coffee with milk, you lose the aroma and flavor quality”
Moscow’s food “Kitchen area” offers 10-15 different hot and cold drinks, including filtered coffee. “The drink is consistently in the top 3 most purchased items and provides about 25% of sales of the whole category,” cites Kirill Rodin, marketing Director of the “Kitchen area”. According to him, the service had tried to sell latte, cappuccino and Americano, and the reviews were good: coffee was hot here, because shipping takes 15-25 minutes. The first time for the safety of a glass of drink wrapped the usual food film, is now the “Kitchen area” has purchased a special stand inside the bags (lodgements), and that “nothing falls out”, assured the Manager.
“Chocolate” until I found the perfect containers for their drinks. “As soon as we obtain perfect results, immediately start the coffee delivered on all the concepts of our group”, — stressed the representative of the group. Private couriers hot drinks also brings a network of cafe “Prime” (at the time of the publication of the representative of “Prime” did not respond to a request for Forbes).
Short age beverage
“Chocolate” sees great potential in the delivery of hot drinks via aggregators. “It can be compared with the category of 2go [coffee to go with them], which has increased significantly in recent years and will continue to grow”, — said the representative of the company. According to research Group NPD, two years ago coffee to go was one of the main drivers of economic growth after the coffee crisis of 2014. The Russian coffee market in 2018, the volume reached 130 billion roubles (30 billion occurred in Moscow) and the potential to grow over the ten years to 1 trillion rubles, follows from the study of Knight Frank.
In some places “Chocolate girl” the proportion of coffee to go as high as 30% of total sales. Delivery of hot beverages through Delivery can also take a significant share in the total volume at the peak figure will be 10%, gives an optimistic forecast for the representative of the network.
The aggregator evaluates the prospects not less positive, referring to the Asian experience. “Coffee consumption is growing in Russia, buy a drink, more and more institutions in the segment of quick service restaurants (QSR),” — said the representative of the Delivery. These include Luckin Coffee in China, most of the points (about 1700) which is small kiosks to service the online orders for pickup or delivery. The company is an aggressive growth plan, although the scale is far from Starbucks (30 000 locations worldwide).
In the US, Starbucks started to deliver a hot drink in 2015. As of January 2019, the connected to the aggregator Uber Eats to cope with declining traffic in its coffee houses and win the competition from McDonald’s and Dunkin’ Donuts. In China, Starbucks is also shipping (from 2000 coffee houses in 30 cities). But not all beverages available for delivery — some can not withstand transportation, for example, cappuccino with milk foam. The rest of the Starbucks beverages are delivered to the cups with spill-proof lids and specialized containers for delivery.
Former co-owner of “Coffee house”, the businessman Vlad Dudakov says shipping critical to the quality of the product: “Black coffee, perhaps, will survive transportation, but a cappuccino or latte in 10 minutes turn into coffee with milk, you lose the aroma and flavor quality”. The representative of the Moscow Coffeemania said that pilots with aggregators network is not involved for the same reason: “Transport spoils the quality of the product, which strictly follows our Barista Department”.
On the other hand, those for whom is really important the taste of the drink, still a minority — no more than 5%, and the mass market dictates the rules, says Dudakov. “The growing popularity of delivery proves that it is not a hobby, but a major shift in the industry to which the type restaurants, Starbucks have to adapt — or risk a lot to lose,” warns Hannah Spencer, an analyst at catering international research company Mintel.
“A few years ago everyone thought that the burgers cannot be delivered because the bread will get soggy, and the Patty will lose juiciness —says Irina Avrutskaya. But the hypothesis proved to be wrong. The same situation with Italian pasta, khinkali, complex desserts. The concept of “undeliverable” items no longer exist. It turned out, the consumer is willing that the dish will bring a later time is not the same as in the restaurant.”
20 most expensive companies web — 2019. The Forbes
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17. CYANOGEN Groups
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