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“What is an FSA? And how can it help my business?”
An FSA (Foodservice Aggregator) is a platform that allows restaurants to manage their delivery operations from one place, instead of using multiple platforms and devices.
Utilizing FSAs allow for growth by driving traffic, digital sales, and beverage attachment.
Everyone wins when FSA partnerships are used to drive profitability through increased beverage attachment and elevating the end-to-end consumer experience.
Additionally, FSAs are investing in unique selling points to foster consumer loyalty, such as subscription services, new product capabilities, and one-stop shopping solutions for food and beverages.¹
FSAs continue to have a strong market share, representing 66% of delivery and half of all digital sales. DoorDash and Uber Eats both lead the way as the two largest FSA platforms in North America.1
Uber Eats has innovative capabilities and customer deals. The Uber Rides mode offers unique targeting and media. Targeted media ads are powered by first party data from rider and eater behaviors to drive conversion. Top markets are New York, Los Angeles, Chicago, and Miami.³
DoorDash has good-quality customer service and a solid systems framework in place to remedy mistakes. DoorDash is three times larger than all other FSA partners and is the industry leader, holding the largest market share. DoorDash offers a targeted day parting approach to its media ads. It also has DashMart which offers an array of cross-functional opportunities. Top markets are New York, Brooklyn, Atlanta, and San Diego.³
While it is important to highlight the strengths and differences of these partners, restaurants should engage with various FSA partners to drive awareness and reach with guests to achieve optimal results in the 3PD space.
The digital customer is unique—they are highly multicultural, younger, and skewed towards cohorts like the Gen-Z and Multicultural guest. This also applies for the FSA audience. Digital customers are also very adventurous and exploratory.⁴ In fact, 57% of customers ordering from FSAs (3PD) do not know what restaurant they plan to order from when they open the app/site.⁵
As they navigate through the digital path to purchase, it’s important to understand their motivations and behaviors during each phase. Once they make the decision to order, consumers typically consider 3-4 restaurants before deciding which to order from. In some cases, this number can be even greater, up to 15 restaurants for the most empirical customer. This presents an ideal environment for recruiting teens and acquiring new guests.⁶
THE BRAINSTORM
Action: Leverage on-platform media and promotion capabilities to drive consideration and traffic for your brand
ACTION PLAN
Action: Improve your menu user experience with our trusted optimization framework to drive higher average check and profitability.
FINAL CONTACT
FSAs allow everyone involved to receive benefits:
Delivery is a huge opportunity to drive traffic for customers. While the industry has seen some overall traffic slowdown, some partners have stood out from current traffic trends, seeing increases driven by digital sales.
How to get the most out of FSA partnerships:
Connect with your Coca-Cola Representative for more insights about FSA partnerships.
Source: 1) Human 8 Coca‑Cola 2024 FSA 2.0 Playbook, May 2024, How to create an FSA Customer Strategy. 2) Technomic Future of Off-Premise 2023 (pg 19, 22, 25, 103, 106), 2- Bloomberg Second Measure- Dec 2023. 3) Human 8 Coca‑Cola 2024 FSA 2.0 Playbook, May 2024, How to create an FSA Customer Strategy. 4) Coca‑Cola DINE 360, Total U.S. Restaurants, 12MMT: Dec 22 CCNA DINE360 Tracker; Time Period: Jan To Dec 2018; Technomic 2023 Ignite Consumer Q2 2022-Q1 2023 and Q2 2021- Q1 2022, base varies approx. 2,400 QSR consumers ages 18+ per attribute 5) 1. Dine360, Total U.S., 12MMT Dec 2021; 2. Custom Consumer Journey Research (Technomic), Total U.S., Fielded Nov 2021, N=1,750; NPD Crest, Total QSR (ex FC & Snack), Total U.S., 12MMT Dec 2021. 6) Human 8 Coca‑Cola 2024 FSA 2.0 Playbook, May 2024, How to create an FSA Customer Strategy. 7) How to Win with FSAs: Driving Beverage Attachment - Custom trade interviews for Coca‑Cola conducted February-March 2024. Custom consumer survey conducted February-March 2024 (n=1,501 respondents, 750 respondents for each route). Source: Custom trade interviews for Coca‑Cola conducted February-March 2024. 8) Human 8 Coca‑Cola 2024 FSA 2.0 Playbook, May 2024, How to create an FSA Customer Strategy, Beverage and Cuisine Pairing Study, May 2022 | NAOU DINE360 Survey, Store Visits, Food & Beverage visits Total U.S. 12MMT June 2021. 9) Human 8 Coca‑Cola 2024 FSA 1.0 Playbook, May 2024, FSOP FSA Strategic Approach & Programming.
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