Spots N Dots
The Daily News Of TV Sales
February 12, 2016
HOME FOOD DELIVERY IS GROWING FAST
COMPETITION EXPANDS BEYOND PIZZA
Food delivery is not a new phenomenon but the accessibility and availability of these
direct-to-door home meal services, whether in-home meal kits, like Blue Apron, or foodservice
delivery, like DoorDash (pictured), is unprecedented, finds The NPD Group. Historically,
consumers were limited to pizza and Asian foods in terms of delivery or local grocery delivery,
but now there are numerous choices. What has also changed from past food delivery, NPD
says, is that consumers are now accustomed to ordering goods online and having them
delivered to their door quickly.
In terms of restaurant delivery, delivery traffic outside of pizza is growing strongly, up by
33% since 2012, while traditional quick service restaurant (QSR) pizza delivery is on the
decline, according to NPD’s foodservice market research. Foodservice delivery options outside
of pizza are still relatively small, with roughly six million delivery-related visits in the past year.
But there is little doubt that the growth rate for categories outside of QSR pizza will continue on
a strong growth path. All types of restaurants are increasingly partnering with delivery services,
such as Eat24, Grub Hub and Seamless. As UberEATS and Amazon Prime Now restaurant
delivery continues to roll out nationally, delivery will see significant growth. NPD’s analysts
forecast that off-premise foodservice will continue to outpace overall restaurant industry traffic
growth over the next decade.
“Consumers want the ‘dining out’ experience of quality food, but they’re saving money
and time by having food delivered to their homes,” says Bonnie Riggs, NPD restaurant industry
analyst. “Similar to the consumer value online direct-to-door shopping fulfills, there is the appeal
of being in the comfort of their own homes, and not having to deal with the ‘hassle’ of the
outside world.”
In-home meal kits, whether meals to cook from scratch or just assembly, are a more
recent offering than foodservice delivery. These kits appeal to consumers wanting fresh,
authentic food, and control over what they’re eating, says NPD. Meal kit delivery services are
growing in popularity, particularly in urban areas, but are not nearly as mainstreamed as
foodservice meals.
“I don’t believe we’ll see mainstream adoption of home meal kits, like we’ve seen with
foodservice delivery,” says Darren Seifer, NPD food and beverage industry analyst. Meal kit
consumers tend to have more expendable income and primarily live in major metro areas.
“There is definitely a market for these services; it’s just not nearly as big as foodservice
delivery,” says Seifer.
ADVERTISER NEWS
Burger King’s announcement of plans to add hot dogs to its menu received a lot of
publicity in the general-market press, as well as mention on some TV news shows. The move,
however, could have been expected after the chain successfully test-marketed the product in
five markets last year, Baltimore, Detroit, Kansas City, Memphis and Salt Lake City……Hoping
the food safety issue is now behind it, Chipotle is reiterating aggressive growth plans for this
year. Worldwide plans (the company won’t provide a “geographic breakout”) are for 220-235
new restaurants, slightly more than were opened in 2015……Panera Bread expects to have
delivery options in place at about 200-300 stores by the end of this year, more than 10% of its
store lineup, after testing the idea at about 25 locations in two markets. “We couldn’t be
whipping the troops harder on this one,” CEO Ron Shaich said……After taking control of R
Taco (the former Rusty Taco) last year, Buffalo Wild Wings is revving up the franchise
program for the chain. The initial priority areas are Texas, Oklahoma, Missouri and
Iowa……Whole Foods same-store sales were down 1.8% for a 16-week fiscal quarter that
ended on 1/17, and the first few weeks of the current quarter are down 2.8%. Planning a “rampup” in promotions this year, Whole Foods still expects to open about 30 new stores during the
year……TracFone, the largest Mobile Virtual Network Operator (a wireless company that
leases use of a major company’s network to route its calls), lost a net of 58,000 subscribers last
quarter and 338,000 for the year, although it still has over 25 million prepaid customers. Its dataservice brands Straight Talk, SafeLink and Total Wireless are still growing, but voice only
brands including Net10 are shedding customers…….J. C. Penney is rolling out a new private
label line this week to more than 500 stores. Belle + Sky is targeted at attracting millennial
women into the stores with “trendy designs, lifestyle versatility and great value”……Humana,
which hopes to be acquired by Aetna later this year, did very well in increasing enrollment for its
heavily-advertised Medicare Advantage plans in the fourth quarter with enrollment up 13% to
2.8 million people. But like most other insurers, the company is losing money on its Affordable
Care Act business, and its CFO commented, “Humana faced challenges across a number of
fronts in 2015”……In a very strong quarter for online sales, overstock.com revenues rose by
2.1%, but profit fell dramatically from $1.36 million to just $110,000. The company’s chairman
noted increased promotional activity and a change in Google’s search engine algorithms for
“some slowing of overall revenue growth.”
NETWORK NEWS
Taylor Swift will be the opening act on The 58th Annual Grammy Awards, airing live
Monday, February 15, at 8:00 pm (ET) on CBS. She’ll perform a song from her Grammynominated album “1989”……Yolanda Adams and Michael W. Smith are set to appear in The
Passion, the two-hour epic musical event airing live from New Orleans Palm Sunday, March
20, at 8:00 pm (ET) on FOX. Adams will kick off the show with a special live performance and
Smith has been tapped for a role as one of Jesus’ disciples……Pitbull will open Premio Lo
Nuestro a la Música Latina, airing live from Miami Thursday, February 18, at 7:00 pm (ET) on
Univision Network. He’ll be joined by Robin Thicke and Joe Perry to perform “Bad Men.”
WEDNESDAY RATINGS
Everybody had a good night on Wednesday, producing a three-way tie in the Nielsen
overnights for the 18-49 demo crown. NBC, led by Chicago P.D., was at an average 1.7 rating
18-49 and 5.0 in Households, with an average audience of 7.670 million. FOX, led by American
Idol, was at 1.7 18-49, 4.1 HH and 6.776 million; ABC, led by Modern Family, 1.7 18-49, 3.5
HH and 5.559 million; CBS, led by Criminal Minds, 1.6 18-49, 4.7 HH and 7.508 million; The
CW 0.8 18-49, 1.4 HH and 2.150 million; Univision 0.7 18-49, 1.0 HH and 1.755 million; and
Telemundo 0.5 18-49, 0.7 HH and 1.256 million.
TRUMP AND UNIVISION SETTLE LAWSUIT
Presidential candidate Donald Trump, the former owner of the Miss Universe
Organization, and Univision Communications have settled their litigation arising from
Univision’s decision not to broadcast the Miss Universe and Miss USA pageants. The terms of
the settlement are confidential.
Trump settled with NBCUniversal last September over NBC’s cancellation of Miss USA
and bought out NBCU’s stake in The Miss Universe Organization. He then sold the pageant
business to IMG and the Miss Universe pageant aired on FOX in December. Both NBC and
Univision dumped the pageant broadcasts after Trump made public comments that offended
many Hispanics.
THIS AND THAT
MySpace (yes, it still exists) is being bought by Time Inc. The magazine publisher was
really after current MySpace parent company Viant Technology for its first-party data and
targeting capabilities to help drive online advertising for the Time Inc. brands. The press release
didn’t even mention MySpace except in the boilerplate, but Viant CEO Tim Vanderhook told
Business Insider there will be opportunities to push through Time Inc. content on
MySpace……Adweek says bids for the $415 million 2020 U.S. Census advertising contract are
due February 22. This time around the Census Bureau is putting more emphasis on digital
technology as the government wants to trim costs through greater use of mobile and
social……Mortgage rates declined for the sixth consecutive week, with the benchmark 30-year
fixed mortgage sliding to 3.78%, according to Bankrate.com's weekly national survey.
HOLIDAY ADVISORY
The Spots n Dots offices will be closed Monday, February 15, in observance of Presidents
Day. The next issue will be published on Tuesday, February 16.
AVAILS
Gulf California Broadcast Company is looking for a Director of Sales who is highly motivated
with a proven record of success, to oversee sales revenue for its television and web properties.
The successful candidate will have 5 to 10 years’ experience in a broadcast television sales
management role, and a highly motivated personality, with great interpersonal skills. Solid
written and verbal communication skills are a must. More details HERE. To apply, note referral
source and send resume to: hr@kesq.com. EOE. Gulf California Broadcast Company is based
in Thousand Palms, CA and is a part of the News-Press and Gazette Company.
WKMG-TV, Orlando FL seeking motivated General Sales Manager to lead day-to-day sales
and marketing activities including WKMG, clickorlando.com and the station’s digital properties.
The right candidate must understand the importance of long range planning and strategy.
Appreciate and understand digital media and its prominent role in cross platform selling. Have
experience with recruiting exceptional sellers, coaching and leading team members to
consistently grow market share and new revenue streams. CLICK HERE for more details. Send
resume to: wkmggm@wkmg.com. EOE
WAXN TV 64 – Cox Media Group Television Station in Charlotte, NC (Market #22) seeks a
Local Account Executive. We’re looking for passionate sellers that want to WIN. The ideal
candidate will be a sales professional with 1-4 years of media sales experience. The candidate
will be responsible for prospecting and selling new business, as well as our vast digital portfolio,
and growing a transactional list. Interested? Please contact Mark Afshar, LSM, 704.371.3120,
mark.afshar@waxntv64.com. EOE
WHNS-TV/FOX Carolina in Greenville, SC is searching for a General Sales Manager who is a
strong team leader. This is an incredible opportunity to work and live in an award winning region
for both livability and business. The ideal candidate must have a strong background in New
Business Development and Inventory Management. Proficiency in recruiting, developing and
motivating a sales staff is a must. A minimum of 5 years of local television experience with an
understanding of national business required. APPLY HERE. EOE.
The Obamas complained that the Wi-Fi in the White House is weak. That’s why, as of this
morning, President Obama and his family have moved into a Starbucks.
--Conan O’Brien
Valentine's Day is the only holiday where a plant suddenly becomes astronomically expensive
and we're OK with it. It would be like if on Easter they charged $20 an egg.
--Jimmy Kimmel
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SPOTS N DOTS
The Daily News Of TV Sales
February 12, 2016
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