Amazon’s purchase of Whole Foods last year raised attention for the growing food delivery industry. Just this week Amazon announced free two hour Whole Foods delivery in a handful of markets (DC is not one yet, sorry).CNBC reports, “According to projections, 70 percent of shoppers will be buying some portion of their groceries online within five to seven years. That could equate to $100 billion in total spending. … The shift is already evident: 49 percent of all shoppers bought a packaged good online within the last three months. That includes 61 percent of millennials and 44 percent of baby boomers. It also includes 54 percent of affluent households and 40 percent of low-income households.”
This trend is making an impact not just on grocery stores but also on the restaurant industry. Bloomberg reports, “Yum! Brands Inc., the corporate parent of Pizza Hut, KFC and Taco Bell, said Thursday it would buy a $200 million stake in GrubHub Inc., which will help deliver food from thousands of KFC and Taco Bell restaurants across the U.S., giving those chains a big lift in a growing market. … Yum is essentially acknowledging that, to build an audience for KFC and Taco Bell delivery, it needs access to GrubHub’s fast-growing customer base, which included 14.5 million active diners in the latest fiscal year.”
The New Yorker talked to several restaurants about the negative impact this is having on their businesses. “In 2016, delivery transactions made up about seven per cent of total U.S. restaurant sales. In a research report published last June, analysts at Morgan Stanley predicted that that number could eventually reach forty per cent of all restaurant sales, and an even higher percentage in urban areas and among casual restaurants, where delivery is concentrated.”
IN THE MEDIA:
Recode reports on Snapchat’s latest effort to attract new advertisers: “Snap wants to attract new advertisers — specifically, it wants to attract advertisers who are spending money with its biggest competitor, Instagram. To lure them over, Snap is reaching out to those advertisers that are buying vertical video ads on Instagram and other competitors, and offering them free advertising credits to give Snapchat a try. … The program is technically open to advertisers who bought vertical video ads anywhere else online, but Instagram is the most likely place Snap will find new targets.”
The White House is expected to release its FY2019 budget and infrastructure proposal both on Monday. OMB Director Mick Mulvaney will head to Capitol Hill for several budget hearings this week, beginning with the Senate Budget Committee on Tuesday and House Budget Committee on Wednesday. Treasury Secretary Mnuchin will testify at the Senate Finance Committee on Wednesday and at the House Ways and Means Committee on Thursday.
ON THE HILL:
It’s a busy week on Capitol Hill with several hearings on the White House Budget request. The Senate is also expected to begin debate on immigration on Monday evening. The Houseis expected to consider two financial services bills.
Monday (February 12): Senate Foreign Relations Committee closed hearing on the Countering America’s Adversaries Through Sanctions Act, with testimony from Assistant Secretaries of State A. Wess Mitchell and Christopher Ford;
Tuesday (February 13): Senate Budget Committee hearingon the President’s FY2019 budget proposal, with testimony from Office of Management and Budget Director Mick Mulvaney; Senate Intelligence Committee open hearing on worldwide threats; Senate HELP Committee hearing on reauthorization of FDA animal drug user fees; Senate Armed Services Subcommittee hearing on the Defense Department’s role in protecting democratic elections; House Rules Committee meetingon the TRID Improvement Act, Protecting Consumers’ Access to Credit Act, and ADA Education and Reform Act;
Thursday (February 15): Senate Finance Committee hearing on the President’s FY2019 budget, with testimony from Health and Human Services Secretary Alex Azar; Senate Foreign Relations Committeehearing on the nominations of Andrea Thompson (to be Undersecretary of State for Arms Control and International Security), Francis Fannon (to be Assistant Secretary of State for Energy Resources), and Susan Thornton (to be Assistant Secretary of State for East Asian and Pacific Affairs); Senate Agriculture, Nutrition and Forestry Committee hearing on the state of the Commodity Futures Trading Commission, with testimony from Chairman J. Christopher Giancarlo; Senate Judiciary Committeeexecutive business meeting to vote on the nominations of 4 judicial nominees and Adam Klein to be chairman of the Privacy and Civil Liberties Oversight Board and on the Sentencing Reform and Corrections Act; Senate Armed Services Committee hearing on the Defense Authorization request for U.S. Northern Command and U.S. Southern Command; House Ways and Means Committee hearing on the President’s FY2019 budget proposal, with testimony from Treasury Secretary Steven Mnuchin; House Energy and Commerce Subcommittee oversight hearing of the Department of Health and Human Services; House Financial Services Subcommittee hearings on de-risking and its effect on access to financial services and the financial nexus of terrorism, drug trafficking, and organized crime; House Homeland Security Subcommittee hearings on industry views of the Chemical Facility Anti-Terrorism Standards program and TSA’s outreach and traveler engagement efforts; House Oversight and Government Reform Subcommittee hearing on the General Services Administration; House Judiciary Subcommitteehearing on the effect of sanctuary city policies on the ability to combat the opioid epidemic; House Armed Services Subcommittee hearings on strategic competition with China and the FY2019 budget request for U.S. Special Operations Forces and Command; House Transportation and Infrastructure Subcommittee oversight hearing of positive train control implementation in the U.S.; House Natural Resources Committee legislative hearings on the National Strategic and Critical Minerals Production Act and 5 bills and subcommittee oversight hearing on the costs of denying border patrol access; House Science, Space and Technology Subcommittee hearing on mentoring, training, and apprenticeships for STEM education and careers; House Small Business Subcommittee hearing on how agritech is revitalizing the Heartland; House Education and the Workforce Subcommitteejoint hearing on the implications of the opioid epidemic for America’s workplaces; The Ripon Societyevent on the goals of the Main Street Caucus, featuring Chairman Rodney Davis (R-IL) and Co-Chairs Jeff Denham (R-CA) and Fred Upton (R-MI); American Enterprise Institute event on securing the internet of things, with Sen. Edward Markey (D-MA) and Rep. Ted Lieu (D-CA);
Friday (February 16): Senate Finance Subcommittee hearing on trade enforcement and infrastructure; House Energy and Oversight Subcommittee oversight hearing of the Federal Communications Commission; House Financial Services Subcommitteehearing on the administration’s perspective on CFIUS.