WEBVTT - Olo’s Glass on Using Guest Data to Boost Traffic

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<v Speaker 1>Welcome to Chopping It Up. I'm your host, Mike Hanlon,

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<v Speaker 1>the senior restaurant and food service analysts at Bloomberg Intelligence.

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<v Speaker 1>Our research and that of bi's five hundred analysts around

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<v Speaker 1>the globe can be found exclusively on the Bloomberg terminal.

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<v Speaker 1>A quick PSA if you like the pod, we'd love

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<v Speaker 1>it if you could leave us a review on Apple

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<v Speaker 1>or Spotify. Today we're joined by Noah Glass, CEO and

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<v Speaker 1>founder of OLO.

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<v Speaker 2>Welcome back to the pod, Noah, Mike, thank you for

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<v Speaker 2>having me, and thank you for having me back.

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<v Speaker 3>This is super exciting.

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<v Speaker 1>Yeah, of course. Man, listen, I appreciate you coming on.

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<v Speaker 1>You were I looked it up. You were episode ten

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<v Speaker 1>and it kind of brought us to another level. You

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<v Speaker 1>were the best performing episode for for quite a while,

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<v Speaker 1>so I appreciate you having the faith in me coming

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<v Speaker 1>on so early, before you know, we really had a name.

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<v Speaker 1>So I appreciate you, and you're welcome back anytime. A man, Well,

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<v Speaker 1>thank you.

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<v Speaker 2>I have heard a rumor that now the best performing

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<v Speaker 2>podcast episode of all time on Chopping It Up was

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<v Speaker 2>my good friend Juwan George had five eight partners. I

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<v Speaker 2>think he started the rumor knowing what I know about him,

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<v Speaker 2>but I have a bit of a competitive streak, as

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<v Speaker 2>does he, and so I'm glad that ten episode ten

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<v Speaker 2>was like number one of the charts for a while.

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<v Speaker 2>I'm bummed it's no longer number one, so I hope

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<v Speaker 2>whatever episode this is can reconquer the number one spot.

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<v Speaker 1>All right, cool man? Yeah, this is sixty six. And

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<v Speaker 1>Matt Tucker, he kind of he benefited from a little

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<v Speaker 1>luck on the terminal, so he's not like top ten

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<v Speaker 1>downloads online, but on the Bloomberg terminal, they they it

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<v Speaker 1>blew up. So Matt Tucker had a great, great episode two.

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<v Speaker 1>So you know, all these guys that previously worked with

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<v Speaker 1>you tend to do pretty well on the pod.

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<v Speaker 3>Yeah.

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<v Speaker 2>We're a lively bunch, and one of our core values

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<v Speaker 2>is that we laugh hard together, and I think that

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<v Speaker 2>comes out in our podcast appearances.

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<v Speaker 1>So are you an NBA guy too, like the two

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<v Speaker 1>of them?

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<v Speaker 2>Not really, mainly because I'm really bad at basketball.

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<v Speaker 3>I don't know.

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<v Speaker 2>My son, who's now eight, was just considering a basketball

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<v Speaker 2>camp this summer, and I was remembering back, you know,

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<v Speaker 2>the scarred experience of athletics in my youth, playing basketball,

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<v Speaker 2>Not really having played basketball before and as I don't

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<v Speaker 2>know if basketball was really like four people of our

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<v Speaker 2>size and athletic abilities. As we were talking before, I

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<v Speaker 2>played lacrosse. That was my game. I played soccer a

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<v Speaker 2>lot grown up, but basketball just never really. I really

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<v Speaker 2>like NCAA Final four basketball. I love I mean, having

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<v Speaker 2>played at the college level and just knowing how hard

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<v Speaker 2>these guys are working, these gals are working. That's super fun.

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<v Speaker 2>I love that NC DOUBLEA grit. I feel less passionate

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<v Speaker 2>about the NBA, although I admire, like incredibly skilled players

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<v Speaker 2>of Edie Craft.

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<v Speaker 4>Yeah yeah, big big week for the NC DOUBLEA. But yeah,

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<v Speaker 4>both Matt and Joan are are big NBA guys and something.

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<v Speaker 4>You know, we like to bust each other about being,

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<v Speaker 4>you know, especially Matt being a Wizards fan. Well, let's

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<v Speaker 4>just you know, why don't you give a quick rundown

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<v Speaker 4>of OOLO just for any listeners that might be new

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<v Speaker 4>to the industry.

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<v Speaker 2>Okay, So we talk about our mission at OLO as

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<v Speaker 2>hospitality at scale and what that means is, you know,

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<v Speaker 2>the way that we show up for enterprise restaurants across

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<v Speaker 2>emerging enterprise enterprise Top twenty five restaurant brands to help

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<v Speaker 2>them really meet the needs of their guests, and we

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<v Speaker 2>do that through an open software platform that has now

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<v Speaker 2>sixteen different modules that restaurant brands use. They're comprised of

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<v Speaker 2>really three suites, order, pay, and Engage, and we're really

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<v Speaker 2>well known in the industry for the order platform, and

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<v Speaker 2>that's what we built over the past twenty years. We're

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<v Speaker 2>coming up on our twenty year anniversary. Initially to enable

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<v Speaker 2>guests to order and pay and get their food faster

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<v Speaker 2>at the restaurant for takeout. That we added delivery to that,

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<v Speaker 2>first party delivery and third party delivery, and really from

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<v Speaker 2>the time of our founding in two thousand and five

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<v Speaker 2>up until our IPO, which is actually this day, March

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<v Speaker 2>seventeenth of twenty twenty one, so this is the four

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<v Speaker 2>year anniversary of the IPO, we were just that order platform.

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<v Speaker 2>We have since added two additional suites to what Olo does, Pay,

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<v Speaker 2>which has integrated payments into the order platform, enabling things

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<v Speaker 2>like Apple Pay and Google Pay, a better payment experience

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<v Speaker 2>for the guest and also a better experience for operators.

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<v Speaker 2>And I'll get into that a bunch, I'm sure now. Also,

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<v Speaker 2>olopay is not just for digital transactions, but also for

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<v Speaker 2>all in store transactions as well. And then engage and

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<v Speaker 2>Engage is from an acquisition that we did, our very

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<v Speaker 2>first acquisition in November of twenty twenty one, and that

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<v Speaker 2>was a company that was known as Wisely had been

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<v Speaker 2>a partner of ours for five years. And it's really

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<v Speaker 2>about taking all of the digital guest data, all the

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<v Speaker 2>different interactions that we have with a guest, bringing it

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<v Speaker 2>together into a unified guest profile, into a guest data

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<v Speaker 2>platform as we call it, or what's typically known as

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<v Speaker 2>a customer data platform, and then using all of that

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<v Speaker 2>data to do bespoke personalized marketing out to the guest

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<v Speaker 2>and to personalize the guest experience. So we think about

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<v Speaker 2>those things, Order, Pay and Engage as working really well

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<v Speaker 2>together together. We call them the OLO guest Data flywheel,

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<v Speaker 2>and really that's because Order and Pay throw off a

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<v Speaker 2>ton of data, transaction data tie back to the guest,

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<v Speaker 2>and then Engage is how you take that data and

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<v Speaker 2>use it to drive even more engagement from guests, more transactions,

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<v Speaker 2>more orders, more payments, and so the flywheel continues to

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<v Speaker 2>spin and spin. For a sense of scale, we are

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<v Speaker 2>now serving over seven hundred and fifty restaurant brands, including Denny's.

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<v Speaker 2>Kelly Valaid, who you had as your last guest. It

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<v Speaker 2>was fun to listen to her. Hear her voice this morning,

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<v Speaker 2>hear your voice this morning as I prepared for this.

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<v Speaker 2>But seven hundred and fifty plus brands. They represent eighty

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<v Speaker 2>six thousand locations across the US and Canada. On the

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<v Speaker 2>guest side of things, we see about ninety five million

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<v Speaker 2>guests who order through OLO on an annual basis. And

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<v Speaker 2>one fun fact that I'm particularly proud of is if

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<v Speaker 2>you aggregate all of the sales that go through OLO

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<v Speaker 2>in the past year. In twenty twenty four, our GMV

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<v Speaker 2>our gross merchandise volume was twenty nine billion dollars, And

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<v Speaker 2>to put that in perspective, if OLO were a restaurant,

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<v Speaker 2>that would make us the second largest out there. We

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<v Speaker 2>just passed Star. There are at twenty eight billion. To

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<v Speaker 2>take the number two slot. The silver medal Number one

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<v Speaker 2>is McDonald's. But I say that not just as a

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<v Speaker 2>vanity metric that's fun to say, but really as something

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<v Speaker 2>that demonstrates just how much volume is going through our platform,

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<v Speaker 2>how it's built for reliability at scale, and the other

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<v Speaker 2>really exciting thing is, that's just the digital sales that

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<v Speaker 2>are going through OLO.

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<v Speaker 3>When you think about.

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<v Speaker 2>Our customer base, those eighty six thousand restaurants digital and

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<v Speaker 2>non digital sales. If you take the stat that digital

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<v Speaker 2>is about eighteen percent of the industry overall, and you

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<v Speaker 2>extrapolate from that what they would be doing in total,

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<v Speaker 2>it's about one hundred and sixty one billion dollars of

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<v Speaker 2>sales volume, which is something around fifteen percent of overall

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<v Speaker 2>restaurant industry sales. So we're proud of that. We're excited

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<v Speaker 2>about that scale that we've achieved. At the same time,

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<v Speaker 2>as I always say to the team, I am grateful

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<v Speaker 2>for all of the things that led to this point,

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<v Speaker 2>and I'm hugely unsatisfied there. We have miles to go

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<v Speaker 2>before we sleep. There's so much opportunity for us to

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<v Speaker 2>have a massive impact on our customers and this industry

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<v Speaker 2>as a whole with the position that.

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<v Speaker 3>We're in, with all the data that we have on

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<v Speaker 3>our platform. All right, good stuff. Yeah.

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<v Speaker 1>One of the companies we covered, Jack in the Box,

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<v Speaker 1>they expanded their relationship with you recently. How much of

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<v Speaker 1>your twenty twenty five growth is expected to come from

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<v Speaker 1>deepening your current customer relationships versus onboarding new ones.

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<v Speaker 2>Yeah, it's a great call out. Those are really the

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<v Speaker 2>two big vectors of growth for us. So I'll break

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<v Speaker 2>it down and then sort of compare them relatively. But

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<v Speaker 2>Jack in the Box just at sticking with that case

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<v Speaker 2>study they actually started with OLO just using our dispatch

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<v Speaker 2>module and Dispatch for those who are unfamiliar, it's enabling

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<v Speaker 2>brands to take delivery orders on their first party sites

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<v Speaker 2>or apps. So even if you don't have your own

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<v Speaker 2>delivery fleet, what dispatch does is a guest can order,

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<v Speaker 2>they can put in their delivery address, schedule a delivery.

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<v Speaker 2>We're then doing the matchmaking between that order and a

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<v Speaker 2>delivery service provider courier who can come collect the order

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<v Speaker 2>and deliver it to the guest. And it's a great

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<v Speaker 2>platform for enabling brands to keep profitability on delivery transactions,

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<v Speaker 2>meet the needs of that guest who wants delivery, and

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<v Speaker 2>very importantly, I would argue, perhaps more importantly in the

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<v Speaker 2>profitability component, keep that direct relationship with the guests. So

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<v Speaker 2>if I want delivery, I'm going direct to Jack in

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<v Speaker 2>the Box. I'm not going to a third party. Even

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<v Speaker 2>knowing that I want Jack in the box where they

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<v Speaker 2>don't get any of the data about me. So that's

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<v Speaker 2>how we started working with them. They had a homegrown

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<v Speaker 2>digital takeout platform, and then Dispatch took that homegrown platform

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<v Speaker 2>and augmented it to become also delivery, and then over time

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<v Speaker 2>they said, you know, this would make sense for us

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<v Speaker 2>to work with Olo to replace our homegrown ordering platform,

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<v Speaker 2>and we sold in sort of the core OLO order

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<v Speaker 2>module to them. This most recent announcement was there expanding

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<v Speaker 2>from that to also use Olo Rails, and that's the

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<v Speaker 2>third component of what we call the order suite, which

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<v Speaker 2>is ordering, Dispatch and Rails. What Rails enables is third

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<v Speaker 2>party marketplace enablement, so syndicating the menu and the prices

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<v Speaker 2>out to the third party marketplaces and then when orders

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<v Speaker 2>originate from guests on those marketplaces, having that flow through

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<v Speaker 2>the OLOAPI and directly.

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<v Speaker 3>Into the kitchen at the restaurant. So that was an.

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<v Speaker 2>Exciting development and not unusual. That's typically how we work

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<v Speaker 2>with brands in that top twenty five segment, which Jack

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<v Speaker 2>in the Boxes will land with one module of our

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<v Speaker 2>sixteen and expand the relationship from there.

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<v Speaker 3>And I think that is.

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<v Speaker 2>Maybe good lead into if you think about our ability

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<v Speaker 2>to expand with existing customers. We just announced that our

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<v Speaker 2>earnings call a couple weeks ago, we're at about three

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<v Speaker 2>point seven modules average. If you take total number of

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<v Speaker 2>modules used divided by total number of locations at eighty

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<v Speaker 2>six thousand, and we have sixteen, so it gives you

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<v Speaker 2>a sense of we're not even at twenty five percent

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<v Speaker 2>of the way to having our customers on all of

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<v Speaker 2>our modules. And that's a pretty good estimate of just

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<v Speaker 2>how much more revenue expansion there is with them. I'll

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<v Speaker 2>come back to that a second. And if you think

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<v Speaker 2>about locations and the ability to land more brands, new

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<v Speaker 2>brands and grow our location count, we're at eighty six thousand.

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<v Speaker 2>We think that's against the backdrop of around three hundred

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<v Speaker 2>thousand enterprise restaurant locations, and really that's how we define

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<v Speaker 2>our market.

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<v Speaker 3>There's a couple of.

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<v Speaker 2>Exceptions here and there of very very small, sub five

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<v Speaker 2>unit restaurant brands that work with those that really have

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<v Speaker 2>the ambition of scale, but typically it's five to five

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<v Speaker 2>plus unit locations and that's about three hundred thousand, So

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<v Speaker 2>eighty six thousand against three hundred thousand. That gives you

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<v Speaker 2>a sense of it's a little bit more than twenty

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<v Speaker 2>five percent, but they're both huge opportunities for us to

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<v Speaker 2>grow and scale. Just back to a brand.

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<v Speaker 3>Using more of our modules.

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<v Speaker 2>I look at a brand like honey Grow, and honey

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<v Speaker 2>Grow is an awesome brand. Uses US for takeout, uses

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<v Speaker 2>US for delivery, uses US for kiosks inside the restaurant,

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<v Speaker 2>so very digitally penetrated, and uses US for payments on

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<v Speaker 2>all of those ordering channels. If you look at what

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<v Speaker 2>we make from a gross profit perspective at honey Grow

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<v Speaker 2>locations versus our average engagement with the customer, we make

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<v Speaker 2>about six point twenty five times more with honey Grow

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<v Speaker 2>than we do with the average customer. And that's just

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<v Speaker 2>a good illustration of our ability to grow with existing customers.

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<v Speaker 2>And I'd say for twenty five our focus is not

0:12:37.200 --> 0:12:39.920
<v Speaker 2>one or the other, it's really both, really in equal parts.

0:12:39.960 --> 0:12:42.160
<v Speaker 2>There's a lot of opportunity for us in that top

0:12:42.200 --> 0:12:45.679
<v Speaker 2>twenty five segment, especially now with a lot of brands

0:12:45.679 --> 0:12:48.680
<v Speaker 2>who have built home Grown. Both think about it the

0:12:48.679 --> 0:12:50.760
<v Speaker 2>way the Jack in the Box did and say, do

0:12:50.840 --> 0:12:53.160
<v Speaker 2>I really want to continue supporting what is now like

0:12:53.200 --> 0:12:57.079
<v Speaker 2>a pretty old and dated platform, or do I want

0:12:57.120 --> 0:12:58.960
<v Speaker 2>to migrate over to OLO at a fraction of the

0:12:59.000 --> 0:13:02.800
<v Speaker 2>cost benefit from all of their innovation. We spend ninety

0:13:02.800 --> 0:13:05.920
<v Speaker 2>million dollars a year in R and D every single

0:13:05.960 --> 0:13:09.960
<v Speaker 2>year and benefit from a library of four hundred partners

0:13:09.960 --> 0:13:14.080
<v Speaker 2>in their partner network. And I think that approach is

0:13:14.760 --> 0:13:17.760
<v Speaker 2>showing to be the better approach. Obviously I'm biased, but

0:13:18.120 --> 0:13:21.880
<v Speaker 2>that seems to be when you look at over twelve

0:13:21.920 --> 0:13:25.120
<v Speaker 2>brands since our IPO migrating off of homegrown platforms and

0:13:25.240 --> 0:13:28.960
<v Speaker 2>onto OLO as a SaaS platform where they could benefit

0:13:29.000 --> 0:13:32.000
<v Speaker 2>from all of that innovation of our ecosystem. I think

0:13:32.040 --> 0:13:34.600
<v Speaker 2>you're seeing that that doesn't just make economic sense, it

0:13:34.640 --> 0:13:35.920
<v Speaker 2>makes innovation sense too.

0:13:36.400 --> 0:13:40.120
<v Speaker 1>Yeah, you mentioned three point seven modules per location. That

0:13:40.240 --> 0:13:43.280
<v Speaker 1>was up from three point five the year prior. You

0:13:43.320 --> 0:13:45.160
<v Speaker 1>know you mentioned honey Grow and a shout out to

0:13:45.600 --> 0:13:47.080
<v Speaker 1>Justin We were emailing.

0:13:46.640 --> 0:13:48.240
<v Speaker 3>Each other yesterday. I love that guy.

0:13:48.880 --> 0:13:51.360
<v Speaker 1>You know, a place like honey a chain like honey Grow,

0:13:51.400 --> 0:13:54.880
<v Speaker 1>and some of your most active users of the users

0:13:54.880 --> 0:13:57.280
<v Speaker 1>that are using the most modules, about how many are

0:13:57.559 --> 0:13:58.120
<v Speaker 1>they using?

0:13:58.400 --> 0:14:02.840
<v Speaker 2>Well, we had this quarter an example with Crisp and Green,

0:14:03.000 --> 0:14:06.439
<v Speaker 2>and I believe that they came on with nine modules

0:14:07.520 --> 0:14:11.720
<v Speaker 2>at the onset of the relationship, and I think that

0:14:11.840 --> 0:14:14.200
<v Speaker 2>might be a record. I don't know that to be true,

0:14:14.240 --> 0:14:17.439
<v Speaker 2>but I'm pretty sure that's a record of the initiation

0:14:17.520 --> 0:14:20.600
<v Speaker 2>of the relationship and a brand taking you know, the

0:14:20.680 --> 0:14:25.400
<v Speaker 2>majority at nine over half of the modules.

0:14:26.000 --> 0:14:26.880
<v Speaker 3>You know, it's interesting.

0:14:27.040 --> 0:14:31.080
<v Speaker 2>We think a lot less about module penetration. We think

0:14:31.160 --> 0:14:35.240
<v Speaker 2>more about the different suites, order, pay, and engage. And

0:14:36.520 --> 0:14:38.480
<v Speaker 2>one of the big focuses that I called out on

0:14:38.520 --> 0:14:41.720
<v Speaker 2>our earnings call a couple weeks back was having more

0:14:41.760 --> 0:14:44.760
<v Speaker 2>brands that we call flywheel customers. And Flywheel customers means

0:14:44.800 --> 0:14:48.400
<v Speaker 2>they're using OLO for order, for pay, and for engage,

0:14:48.400 --> 0:14:52.080
<v Speaker 2>and so they're benefiting from that Flywheel effective more orders,

0:14:52.120 --> 0:14:55.200
<v Speaker 2>more payments, that drives more guest data, that enables engaged

0:14:55.240 --> 0:14:57.800
<v Speaker 2>to drive more orders and more payments with that guest data.

0:14:58.520 --> 0:15:01.280
<v Speaker 2>And we had a bunch of brands that we announced

0:15:01.520 --> 0:15:05.240
<v Speaker 2>as Flywheel customers this quarter. We talked about some of

0:15:05.280 --> 0:15:08.040
<v Speaker 2>the success stories, but I think this year we're going

0:15:08.080 --> 0:15:12.160
<v Speaker 2>to see a pronounced growth in the number of Flywheel brands.

0:15:13.160 --> 0:15:15.400
<v Speaker 2>I just think it's meeting the moment that we're experiencing

0:15:15.440 --> 0:15:18.240
<v Speaker 2>as an industry and like listening into the conversation with

0:15:18.360 --> 0:15:23.480
<v Speaker 2>Kelly was a really good reminder of why it's imperative

0:15:23.520 --> 0:15:27.360
<v Speaker 2>that brands think about how they can use guest data

0:15:27.800 --> 0:15:32.320
<v Speaker 2>to get much more efficient and effective in their marketing

0:15:32.840 --> 0:15:36.600
<v Speaker 2>and drive traffic, but not just any traffic, drive profitable traffic.

0:15:37.640 --> 0:15:38.760
<v Speaker 3>And I think that is.

0:15:38.720 --> 0:15:40.560
<v Speaker 2>Going to be something we talk a bunch about today.

0:15:40.600 --> 0:15:43.320
<v Speaker 2>But I mean, that is this thing that I see

0:15:43.360 --> 0:15:46.880
<v Speaker 2>as I guess sickness in our industry, this dependence on

0:15:48.560 --> 0:15:53.240
<v Speaker 2>any tactic that is driving traffic, but even those and

0:15:53.280 --> 0:15:56.360
<v Speaker 2>often those that are eroding the bottom line for franchisees.

0:15:57.040 --> 0:15:58.920
<v Speaker 3>And that is that has a road to ruin.

0:15:59.720 --> 0:16:00.920
<v Speaker 1>Yeah, that's for sure.

0:16:00.960 --> 0:16:01.160
<v Speaker 3>Man.

0:16:01.600 --> 0:16:04.200
<v Speaker 1>Have you ever disclosed what percentage of your customers are

0:16:04.280 --> 0:16:06.640
<v Speaker 1>Flywheel customers using all three product suites?

0:16:07.120 --> 0:16:10.400
<v Speaker 2>We haven't, And that's kind of a new concept. I

0:16:10.440 --> 0:16:14.240
<v Speaker 2>mean Flywheel came out, we started using that terminology think

0:16:14.280 --> 0:16:17.840
<v Speaker 2>about a quarter ago, and we talked about this quarter.

0:16:17.920 --> 0:16:21.160
<v Speaker 2>Brands like California Fish Grill, which is an awesome example,

0:16:21.600 --> 0:16:25.440
<v Speaker 2>like Honey Grow, they also use Kiosks with OLO and

0:16:25.480 --> 0:16:28.880
<v Speaker 2>so they have a huge amount of data from takeout,

0:16:28.880 --> 0:16:31.840
<v Speaker 2>from delivery, but also the in store transactions going across

0:16:31.880 --> 0:16:34.720
<v Speaker 2>the Kiosk. All of those transactions are tied back to

0:16:34.840 --> 0:16:38.440
<v Speaker 2>a guest identity and they just started to use Engage

0:16:39.000 --> 0:16:42.800
<v Speaker 2>and the Engage platform has been transformative for them. And

0:16:42.840 --> 0:16:44.640
<v Speaker 2>we have a great Cayse study up on our site.

0:16:45.360 --> 0:16:45.960
<v Speaker 3>I'm excited.

0:16:46.000 --> 0:16:48.720
<v Speaker 2>This week we have Mark Hardesan, who's the CMO a

0:16:48.800 --> 0:16:52.600
<v Speaker 2>California Fish Grill, speaking at or Beyond for customer conference.

0:16:53.400 --> 0:16:55.360
<v Speaker 2>But what they saw was that in a six month

0:16:55.360 --> 0:16:58.200
<v Speaker 2>period they were able to grow their database of guests

0:16:58.360 --> 0:17:01.760
<v Speaker 2>by forty one percent. They were able to grow their

0:17:02.400 --> 0:17:07.119
<v Speaker 2>percentage of guests that were contactable, meaning not only are

0:17:07.200 --> 0:17:09.600
<v Speaker 2>they known, but they have the permission from that guest

0:17:09.640 --> 0:17:12.800
<v Speaker 2>to send them a message by twenty one percent. And

0:17:12.840 --> 0:17:15.360
<v Speaker 2>then they used Engage to send out marketing. And marketing

0:17:15.400 --> 0:17:19.120
<v Speaker 2>for us is email, text, in at message. You pick

0:17:19.160 --> 0:17:21.040
<v Speaker 2>the right medium for the guest based on what we

0:17:21.080 --> 0:17:24.120
<v Speaker 2>know is effected with them with the right message personalized

0:17:24.160 --> 0:17:27.560
<v Speaker 2>for them at the right time. And they drove seven

0:17:27.600 --> 0:17:31.720
<v Speaker 2>million dollars of sales that they attribute to those marketing campaigns.

0:17:32.320 --> 0:17:35.000
<v Speaker 2>No discounts, no deals. It wasn't some sort of like

0:17:35.680 --> 0:17:38.800
<v Speaker 2>here's a free item, here's a bogo, none of that.

0:17:38.960 --> 0:17:42.280
<v Speaker 2>It was just about communicating with guests in a personalized way,

0:17:42.480 --> 0:17:47.040
<v Speaker 2>utilizing the guest data that we gathered through Engage, telling

0:17:47.040 --> 0:17:49.480
<v Speaker 2>that story and showing brands the light of like, there's

0:17:49.520 --> 0:17:51.440
<v Speaker 2>a better way to do this. Now you can drive

0:17:51.560 --> 0:17:53.600
<v Speaker 2>profitable traffic, not just traffic.

0:17:53.320 --> 0:17:54.160
<v Speaker 3>At any expense.

0:17:54.880 --> 0:17:56.480
<v Speaker 2>Is really I think going to be a big, big

0:17:56.480 --> 0:18:00.200
<v Speaker 2>focus of the week this week at Beyond four. Giving

0:18:01.040 --> 0:18:05.040
<v Speaker 2>the platform to the stage two brands like California Fishgrill

0:18:05.080 --> 0:18:07.760
<v Speaker 2>and leaders like Mark who can tell that story and

0:18:07.840 --> 0:18:11.720
<v Speaker 2>inspire other brands to try something new because the old

0:18:11.720 --> 0:18:13.080
<v Speaker 2>playbook is not working.

0:18:12.880 --> 0:18:14.280
<v Speaker 3>Right now, no doubt.

0:18:14.480 --> 0:18:17.560
<v Speaker 1>Alllo announced a new partnership with Freedom Pay last month.

0:18:18.280 --> 0:18:20.000
<v Speaker 1>How is this going to help you achieve your mission

0:18:20.000 --> 0:18:22.360
<v Speaker 1>of digitizing all restaurant transactions?

0:18:23.119 --> 0:18:25.600
<v Speaker 2>Yeah, I'm really excited about this partnership. And let me

0:18:25.720 --> 0:18:27.800
<v Speaker 2>kind of frame it with some context. So about a

0:18:27.880 --> 0:18:32.679
<v Speaker 2>year ago, at last year's Beyond four events, we announced olopay,

0:18:33.680 --> 0:18:36.040
<v Speaker 2>leaving just the digital realm and be able to do

0:18:36.160 --> 0:18:40.080
<v Speaker 2>card present transactions as well, and we announced that with

0:18:40.240 --> 0:18:43.199
<v Speaker 2>POS partnerships, in other words, we would directly integrate to

0:18:43.280 --> 0:18:47.280
<v Speaker 2>POS and be a payment processor through Adyen with those

0:18:47.320 --> 0:18:50.040
<v Speaker 2>point of sale partners So we announced that with three

0:18:50.080 --> 0:18:53.960
<v Speaker 2>point of sale partners, with Q, with NCR, and with Trey,

0:18:54.119 --> 0:18:57.880
<v Speaker 2>that probably covered about thirty percent of our install base

0:18:57.960 --> 0:19:01.600
<v Speaker 2>of customers, and people were really excited about that because

0:19:01.600 --> 0:19:05.439
<v Speaker 2>the value proposition was not only will olpay make for

0:19:05.520 --> 0:19:08.520
<v Speaker 2>a better payment experience in the digital realm with things

0:19:08.560 --> 0:19:10.879
<v Speaker 2>like Apple Pay and Google Pay and card on file,

0:19:10.960 --> 0:19:14.280
<v Speaker 2>et cetera, it will also do all those things in

0:19:14.440 --> 0:19:17.160
<v Speaker 2>the non digital realm, and you will, as a brand,

0:19:17.320 --> 0:19:20.199
<v Speaker 2>not just make your guests happier by doing that, but

0:19:20.640 --> 0:19:23.160
<v Speaker 2>you will be able to tie all of the transactions

0:19:23.160 --> 0:19:26.679
<v Speaker 2>that are happening through olpay back to a guest identity

0:19:26.840 --> 0:19:30.040
<v Speaker 2>in the guest data platform. So this idea of payments

0:19:30.119 --> 0:19:34.400
<v Speaker 2>linked to guest data is critical to the value proposition

0:19:34.440 --> 0:19:36.760
<v Speaker 2>of olopay. So if you heard about this and you

0:19:36.840 --> 0:19:39.560
<v Speaker 2>were on one of those POS platforms, you were excited.

0:19:39.600 --> 0:19:41.080
<v Speaker 2>And if you heard about it and you weren't on

0:19:41.080 --> 0:19:44.600
<v Speaker 2>one of those POS platforms, the inevitable next question was, Okay,

0:19:44.640 --> 0:19:46.359
<v Speaker 2>but when are you going to get to my pos?

0:19:46.400 --> 0:19:48.440
<v Speaker 2>You just said three, but you work with thirty six

0:19:49.280 --> 0:19:53.440
<v Speaker 2>and what happened over the time from last year until

0:19:53.440 --> 0:19:57.800
<v Speaker 2>now is one of our longest standing payments partner in

0:19:57.880 --> 0:20:02.000
<v Speaker 2>Stripe Fords your relationship with Freedom Pay and Freedom Pay

0:20:02.040 --> 0:20:03.840
<v Speaker 2>is already in use in a lot of our restaurant

0:20:04.320 --> 0:20:08.879
<v Speaker 2>customers as a payment terminal sitting inside the restaurant that

0:20:08.920 --> 0:20:10.120
<v Speaker 2>the guest is interfacing with.

0:20:11.040 --> 0:20:12.400
<v Speaker 3>Stripe signed to deal with them.

0:20:12.920 --> 0:20:16.040
<v Speaker 2>Immediately after that happened, we jumped in and said, hey,

0:20:16.240 --> 0:20:18.960
<v Speaker 2>could we be the first big project that you work

0:20:19.040 --> 0:20:23.399
<v Speaker 2>on in this Olo pay realm of Stripe and Freedom

0:20:23.440 --> 0:20:27.000
<v Speaker 2>Pay enabling OLO to do Freedom pay broadly so we

0:20:27.000 --> 0:20:28.840
<v Speaker 2>don't have to go POS by POS. We can do

0:20:28.880 --> 0:20:33.119
<v Speaker 2>this kind of across the customer base to their credit

0:20:33.240 --> 0:20:36.520
<v Speaker 2>Stripe Freedom Pay. They jumped on this. They've been amazing

0:20:36.600 --> 0:20:40.040
<v Speaker 2>partners to one another, to us, and we were able

0:20:40.080 --> 0:20:42.360
<v Speaker 2>to announce this partnership a couple weeks back. I think

0:20:42.400 --> 0:20:46.520
<v Speaker 2>it was actually February fourth, if I'm remembering correctly. But

0:20:47.520 --> 0:20:51.560
<v Speaker 2>this unlocks that same value proposition for the vast majority

0:20:51.720 --> 0:20:54.800
<v Speaker 2>of our customers. So because Freedom Pay has already done

0:20:55.280 --> 0:21:00.720
<v Speaker 2>thousands of POS and payment gateway integrations, so now you

0:21:00.760 --> 0:21:03.320
<v Speaker 2>can instead of having the OLO going direct to your

0:21:03.359 --> 0:21:07.000
<v Speaker 2>POS method of OLO being the payments provider, you can

0:21:07.080 --> 0:21:10.040
<v Speaker 2>have Freedom Paid terminals there regardless of the pos that

0:21:10.080 --> 0:21:14.040
<v Speaker 2>you're using, and importantly, you can still get all that

0:21:14.240 --> 0:21:18.320
<v Speaker 2>guest data. You can get the transaction tied to the guests,

0:21:19.119 --> 0:21:22.520
<v Speaker 2>and importantly you can also get item level detail, what

0:21:22.560 --> 0:21:25.880
<v Speaker 2>did the guest order on this order. So you're right

0:21:26.000 --> 0:21:28.679
<v Speaker 2>to mention that our goal is we want to get

0:21:28.720 --> 0:21:32.400
<v Speaker 2>to one hundred percent digital, and traditionally that's meant every

0:21:32.440 --> 0:21:35.280
<v Speaker 2>transaction going through a digital channel, whether that's a Kiosk

0:21:35.359 --> 0:21:36.240
<v Speaker 2>or a digital order.

0:21:36.960 --> 0:21:39.440
<v Speaker 3>In a way, that's kind of a dated.

0:21:39.240 --> 0:21:42.960
<v Speaker 2>Notion because if you have the ability to pull a

0:21:43.160 --> 0:21:46.399
<v Speaker 2>digital level of data from every transaction, those that are

0:21:46.440 --> 0:21:49.560
<v Speaker 2>going through a digital channel and those that are the

0:21:49.640 --> 0:21:52.040
<v Speaker 2>vast majority eighty two percent that are going through a

0:21:52.080 --> 0:21:56.280
<v Speaker 2>non digital channel, you've effectively jump cut to that one

0:21:56.359 --> 0:22:00.800
<v Speaker 2>hundred percent digital future in one fil suite. That's why

0:22:00.840 --> 0:22:03.760
<v Speaker 2>we're so excited and why our customers are so excited

0:22:03.840 --> 0:22:07.840
<v Speaker 2>about ollapay card present, and why freedom Pay was. The

0:22:07.840 --> 0:22:10.399
<v Speaker 2>big unlock of that is it enables you as a

0:22:10.440 --> 0:22:14.560
<v Speaker 2>brand to see every guest in your guest data platform

0:22:14.960 --> 0:22:18.639
<v Speaker 2>and from a guest perspective, see every transaction they've placed,

0:22:18.640 --> 0:22:22.200
<v Speaker 2>digital and non digital, all collated back to the profile

0:22:22.240 --> 0:22:24.760
<v Speaker 2>that you have about that guest with the level of

0:22:24.760 --> 0:22:28.440
<v Speaker 2>detail of what items did Mike order, what ingredients did

0:22:28.440 --> 0:22:32.600
<v Speaker 2>he modify or ad or remove or substitute. That's a

0:22:32.640 --> 0:22:34.920
<v Speaker 2>really powerful level of data that if you think about

0:22:34.960 --> 0:22:37.479
<v Speaker 2>a world in which we have access to all of

0:22:37.520 --> 0:22:40.320
<v Speaker 2>this guest data and now we can unleash AI and

0:22:40.400 --> 0:22:44.280
<v Speaker 2>machine learning to do personalization to get to segment of

0:22:44.320 --> 0:22:46.199
<v Speaker 2>one is kind of the north star, like, how do

0:22:46.280 --> 0:22:48.840
<v Speaker 2>I speak to you in a way that is perfectly

0:22:48.920 --> 0:22:51.880
<v Speaker 2>tuned to appeal to you, not the same message out

0:22:51.880 --> 0:22:56.320
<v Speaker 2>to everybody, but one to one marketing. In reality, that's

0:22:56.359 --> 0:22:59.119
<v Speaker 2>what this enables, really for the first time in our industry,

0:22:59.600 --> 0:23:01.840
<v Speaker 2>and it's it's exactly this thing that we experience when

0:23:01.880 --> 0:23:04.600
<v Speaker 2>we use Spotify or we use Netflix and we're like, oh,

0:23:04.600 --> 0:23:06.800
<v Speaker 2>that's a banger of a song on my Discover weekly

0:23:06.840 --> 0:23:07.240
<v Speaker 2>this week.

0:23:08.200 --> 0:23:09.879
<v Speaker 3>How do they know I would like this song so much?

0:23:09.920 --> 0:23:14.160
<v Speaker 2>Well, it's because of the massive data set of other users,

0:23:14.280 --> 0:23:17.880
<v Speaker 2>other consumers that look just like you, and using what's

0:23:17.880 --> 0:23:21.200
<v Speaker 2>called collaborative filtering to find that lookalike audience to see

0:23:21.200 --> 0:23:24.000
<v Speaker 2>what they're listening to that you've never listened to, and say,

0:23:24.119 --> 0:23:26.440
<v Speaker 2>Mike's going to like this one, and the same thing

0:23:26.560 --> 0:23:29.240
<v Speaker 2>can now be done with restaurants. You know, what does

0:23:29.240 --> 0:23:32.320
<v Speaker 2>a restaurant They're going to show you your favorite order

0:23:32.440 --> 0:23:34.840
<v Speaker 2>that you've ordered every time, because most of the time

0:23:34.880 --> 0:23:37.080
<v Speaker 2>you're going to reorder that. But what's the next best

0:23:37.080 --> 0:23:39.560
<v Speaker 2>thing to show you? That has been a crapshoot. People

0:23:39.640 --> 0:23:41.280
<v Speaker 2>just say do you want fries? Do you want to drink?

0:23:41.320 --> 0:23:44.879
<v Speaker 2>It's just been generic. Now it can be intensely personalized,

0:23:45.320 --> 0:23:48.639
<v Speaker 2>hyper personalized just to you. And I think that's a

0:23:48.920 --> 0:23:52.119
<v Speaker 2>really powerful new tool for brands to expand the number

0:23:52.160 --> 0:23:55.119
<v Speaker 2>of cravings that they're guests, their best guests, every guest

0:23:55.200 --> 0:23:58.280
<v Speaker 2>has of their brand. That inherently is going to up

0:23:58.280 --> 0:24:01.200
<v Speaker 2>the frequency. If I'm craving things, not one thing from

0:24:01.200 --> 0:24:03.639
<v Speaker 2>your menu, I'm going to come more often for sure.

0:24:03.720 --> 0:24:06.720
<v Speaker 1>Yeah, it's exciting because obviously one to one marketing has

0:24:06.760 --> 0:24:09.600
<v Speaker 1>got so much potential, right and we've been slowly moving

0:24:09.640 --> 0:24:15.159
<v Speaker 1>towards towards towards it. But yeah, it's exciting. When is

0:24:15.160 --> 0:24:16.840
<v Speaker 1>it going to be available for your customers?

0:24:17.520 --> 0:24:20.320
<v Speaker 2>So we announced in our call it's midyear this year.

0:24:21.119 --> 0:24:24.080
<v Speaker 2>We are already out in the market our go to

0:24:24.119 --> 0:24:27.399
<v Speaker 2>market team talking to our customers about this. The concept

0:24:27.480 --> 0:24:30.520
<v Speaker 2>of olopay in cart present is not a new one

0:24:30.520 --> 0:24:32.120
<v Speaker 2>because we started talking about it a year ago.

0:24:32.720 --> 0:24:33.840
<v Speaker 3>But the notion that.

0:24:33.760 --> 0:24:37.800
<v Speaker 2>It's now available broadly, that's the new thing. And for

0:24:37.880 --> 0:24:41.000
<v Speaker 2>those call it seventy percent of our customers who weren't

0:24:41.040 --> 0:24:44.359
<v Speaker 2>on one of those direct pos relationships that we already announced,

0:24:44.720 --> 0:24:47.120
<v Speaker 2>they're the ones who are now going to and saying, hey,

0:24:47.160 --> 0:24:49.720
<v Speaker 2>you can now play in this realm too, And you

0:24:49.760 --> 0:24:51.320
<v Speaker 2>don't have to wait for us to go one by

0:24:51.359 --> 0:24:53.240
<v Speaker 2>one through a list of thirty six different point of

0:24:53.280 --> 0:24:55.560
<v Speaker 2>sale providers until we get to yours. You can do

0:24:55.640 --> 0:24:56.640
<v Speaker 2>it through Freedom Pay.

0:24:56.720 --> 0:25:00.640
<v Speaker 1>All right, good stuff. And on the topic guest data

0:25:00.680 --> 0:25:04.960
<v Speaker 1>and personalization, who do you think is doing it right?

0:25:05.080 --> 0:25:07.320
<v Speaker 1>Out of maybe some of the large brands that are

0:25:07.320 --> 0:25:10.359
<v Speaker 1>doing it in house, Are there anyone that you know

0:25:10.520 --> 0:25:13.120
<v Speaker 1>you kind of look towards and say, I think they're

0:25:13.200 --> 0:25:15.320
<v Speaker 1>moving in the right direction and this is something that

0:25:15.359 --> 0:25:16.760
<v Speaker 1>we should try to emulate.

0:25:17.040 --> 0:25:19.879
<v Speaker 2>Yeah, I mean, look to the speaker list at beyond

0:25:19.880 --> 0:25:22.080
<v Speaker 2>four and you'll see examples of the people that we

0:25:22.160 --> 0:25:24.879
<v Speaker 2>want to give the mic to because they're going to

0:25:25.000 --> 0:25:28.639
<v Speaker 2>educate the rest of the audience around how to do it. Right,

0:25:28.720 --> 0:25:32.440
<v Speaker 2>and I think first amongst those is Matt Eisenacher at

0:25:32.560 --> 0:25:37.040
<v Speaker 2>First Watch. It is just a clinic in how to

0:25:37.160 --> 0:25:41.440
<v Speaker 2>use guest data and personalization to drive the right messaging

0:25:41.480 --> 0:25:43.960
<v Speaker 2>to the right guests at the right time, over the

0:25:44.000 --> 0:25:47.920
<v Speaker 2>right medium. They do it best. They are shotting a

0:25:48.000 --> 0:25:50.879
<v Speaker 2>light in what's possible. I'm thrilled with the success that

0:25:50.920 --> 0:25:54.679
<v Speaker 2>they're having, the investment that they're making and marketing not

0:25:54.880 --> 0:25:57.520
<v Speaker 2>in like a yeah, we're going to run some Super

0:25:57.520 --> 0:26:00.920
<v Speaker 2>Bowl ads kind of lazy way, in a this thing

0:26:01.040 --> 0:26:04.400
<v Speaker 2>works and it's precise and it's efficient and it's effective.

0:26:04.480 --> 0:26:06.719
<v Speaker 2>We're going to dial it up and double down on this.

0:26:07.240 --> 0:26:10.359
<v Speaker 2>And he's just a remarkable leader. And then I mentioned

0:26:10.400 --> 0:26:14.560
<v Speaker 2>you know, Mark Hardison and a bunch of others, Justine

0:26:14.560 --> 0:26:19.000
<v Speaker 2>at Bartaco, smaller brand, but like they've really bought into

0:26:19.040 --> 0:26:23.000
<v Speaker 2>this idea of we all see personalization being an effective

0:26:23.040 --> 0:26:24.440
<v Speaker 2>thing in every other industry.

0:26:24.840 --> 0:26:25.840
<v Speaker 3>Why not restaurants.

0:26:25.880 --> 0:26:28.480
<v Speaker 2>We have all this data, why not collate it guests

0:26:28.520 --> 0:26:32.560
<v Speaker 2>by guest, identify the best guests, and think about how

0:26:32.600 --> 0:26:34.480
<v Speaker 2>we turn every guest into one of our best guests,

0:26:34.520 --> 0:26:37.199
<v Speaker 2>and go find more that look just like our best guests.

0:26:38.400 --> 0:26:41.600
<v Speaker 2>That's a superpower, and it's going to differentiate the brands

0:26:41.600 --> 0:26:44.840
<v Speaker 2>that thrive during this time and those that use the

0:26:44.840 --> 0:26:46.080
<v Speaker 2>old playbook and don't make it.

0:26:46.640 --> 0:26:49.679
<v Speaker 1>And ol pay is growing very fast. Obviously that's more

0:26:49.720 --> 0:26:52.240
<v Speaker 1>of a volume business, so i'd imagine it'd be a

0:26:52.400 --> 0:26:55.920
<v Speaker 1>nice boost to your operating margin dollars, but not necessarily

0:26:56.000 --> 0:26:59.399
<v Speaker 1>the margins. Have you spoken about the impact to your

0:26:59.400 --> 0:27:00.880
<v Speaker 1>margins and twenty five.

0:27:00.920 --> 0:27:03.600
<v Speaker 2>Yeah, I mean so just to cover off on that.

0:27:04.040 --> 0:27:08.159
<v Speaker 2>Ola pay has grown really quickly and the opportunity ahead

0:27:08.240 --> 0:27:11.240
<v Speaker 2>is massive, So we grew In twenty twenty two, we

0:27:11.280 --> 0:27:15.159
<v Speaker 2>did two hundred and fifty million dollars of payments volume

0:27:15.200 --> 0:27:19.000
<v Speaker 2>through olipay. In twenty three we did a billion, and

0:27:19.040 --> 0:27:20.920
<v Speaker 2>then last year in twenty four we did two point

0:27:20.920 --> 0:27:23.440
<v Speaker 2>eight billion, So from two fifty to two point eight billion,

0:27:23.480 --> 0:27:25.560
<v Speaker 2>at more than ten x, more than eleven x in

0:27:25.640 --> 0:27:29.160
<v Speaker 2>that two year period. But again that's against a backdrop

0:27:29.200 --> 0:27:32.639
<v Speaker 2>of twenty nine billion dollars in gross merchandise volume two

0:27:32.680 --> 0:27:35.480
<v Speaker 2>point eight over over twenty nine, so we're not even

0:27:35.520 --> 0:27:40.200
<v Speaker 2>at ten percent penetrated for olopay card not present meaning

0:27:40.400 --> 0:27:44.879
<v Speaker 2>transactions that are digital transactions, and we've just unlocked that

0:27:44.960 --> 0:27:48.680
<v Speaker 2>full one hundred and sixty one billion in gross merchandise

0:27:48.760 --> 0:27:54.080
<v Speaker 2>volume that our eighty six thousand restaurants do as addressable sellable,

0:27:54.119 --> 0:27:58.520
<v Speaker 2>addressable market SAM for olpay Card Now Present and Card

0:27:58.560 --> 0:28:01.199
<v Speaker 2>Present went from twenty nine bills to an additional one

0:28:01.280 --> 0:28:04.760
<v Speaker 2>hundred and thirty two one hundred and sixty one billion.

0:28:05.000 --> 0:28:08.439
<v Speaker 2>So from that perspective, two point eight billion. We're thrilled

0:28:08.440 --> 0:28:10.640
<v Speaker 2>about the progress, but we're not even at two percent

0:28:10.840 --> 0:28:14.199
<v Speaker 2>of the total opportunity. And like I said, there's a

0:28:14.240 --> 0:28:16.360
<v Speaker 2>reason why brands want to do this. It's not oh,

0:28:16.359 --> 0:28:19.800
<v Speaker 2>it's a great revenue opportunity for OLO. It is this

0:28:19.840 --> 0:28:22.760
<v Speaker 2>is uniquely helping you to harvest guest data with the

0:28:22.760 --> 0:28:26.080
<v Speaker 2>guest permission into that guest data platform and compete on

0:28:26.160 --> 0:28:33.080
<v Speaker 2>a whole different level with your competition. From a margin perspective,

0:28:33.600 --> 0:28:38.560
<v Speaker 2>you're right, payments is a volume game. The more volume

0:28:38.600 --> 0:28:42.080
<v Speaker 2>you do, the better you're economics, the lower your costs,

0:28:42.160 --> 0:28:44.200
<v Speaker 2>and so the better your economics, the higher your margin.

0:28:45.080 --> 0:28:48.480
<v Speaker 2>It's also true that in the card present realm.

0:28:48.640 --> 0:28:49.360
<v Speaker 3>You have a mix.

0:28:49.480 --> 0:28:51.560
<v Speaker 2>Sometimes people are using debit cards and you have a

0:28:51.600 --> 0:28:54.600
<v Speaker 2>better lower cost than those debit cards for processing. You

0:28:54.640 --> 0:28:58.440
<v Speaker 2>have better spread on those but look, I think honey

0:28:58.520 --> 0:29:00.600
<v Speaker 2>Grow is a perfect example for that as well. I

0:29:00.640 --> 0:29:04.400
<v Speaker 2>mean they are using OLO pay for their digital transactions

0:29:04.440 --> 0:29:07.880
<v Speaker 2>inclusive of all of their in restaurant transactions that are

0:29:07.880 --> 0:29:10.680
<v Speaker 2>done through Kiosk in the way that their service model works,

0:29:11.240 --> 0:29:14.480
<v Speaker 2>and that's in large part why from a revenue perspective,

0:29:14.480 --> 0:29:17.840
<v Speaker 2>from a gross profit perspective, there's six and a half

0:29:17.960 --> 0:29:21.480
<v Speaker 2>times the average restaurant the gross profit per unit of

0:29:21.480 --> 0:29:24.000
<v Speaker 2>a Honey Grow versus the typical gross profit that we

0:29:24.040 --> 0:29:27.400
<v Speaker 2>receive per unit. So it just illustrates that there's a

0:29:27.440 --> 0:29:31.600
<v Speaker 2>lot of business opportunity for OLO in payments. It's a

0:29:31.640 --> 0:29:35.040
<v Speaker 2>lower margin revenue stream, of course, but there's meaningful margin,

0:29:35.120 --> 0:29:39.200
<v Speaker 2>meaningful gross profit dollars within payments, and there's huge runway

0:29:39.240 --> 0:29:43.160
<v Speaker 2>for us to grow into while being on the restaurant

0:29:43.240 --> 0:29:45.160
<v Speaker 2>side and helping them do something that is going to

0:29:45.160 --> 0:29:46.200
<v Speaker 2>make their business better.

0:29:46.480 --> 0:29:48.080
<v Speaker 3>All right, good stuff, and we covered a lot.

0:29:48.120 --> 0:29:50.880
<v Speaker 1>But are there any other twenty twenty five growth opportunities

0:29:51.000 --> 0:29:53.000
<v Speaker 1>or priorities that they're focused on.

0:29:53.560 --> 0:29:53.760
<v Speaker 3>Yeah?

0:29:53.800 --> 0:29:57.480
<v Speaker 2>I think the only other big focus area for us

0:29:57.720 --> 0:30:00.760
<v Speaker 2>is in catering, and I talked to about this a

0:30:00.800 --> 0:30:03.560
<v Speaker 2>lot on the earnings call A couple weeks back. But

0:30:03.680 --> 0:30:06.960
<v Speaker 2>catering is just this like sleeping giant. It is currently

0:30:07.200 --> 0:30:11.120
<v Speaker 2>a sixty billion dollar end market. I think it's growing.

0:30:11.480 --> 0:30:14.280
<v Speaker 2>In grand View Research, if I'm remembering correctly, is the

0:30:14.320 --> 0:30:16.440
<v Speaker 2>source of this data. I think it's growing to one

0:30:16.520 --> 0:30:19.080
<v Speaker 2>hundred and thirty two billion over the coming years five

0:30:19.160 --> 0:30:23.000
<v Speaker 2>six years, So it's already really big. It's doubling. It's

0:30:23.200 --> 0:30:25.760
<v Speaker 2>found money for so many brands. I mean, all they

0:30:25.840 --> 0:30:30.920
<v Speaker 2>need is a tool to enable them to serve catering customers,

0:30:30.960 --> 0:30:33.440
<v Speaker 2>and that is what that's the gap that we filled

0:30:33.480 --> 0:30:37.280
<v Speaker 2>with our Catering Plus module. So it is a purpose

0:30:37.280 --> 0:30:40.720
<v Speaker 2>built for catering module that enables brands to take large

0:30:40.720 --> 0:30:43.920
<v Speaker 2>format orders and then all of our other modules connect

0:30:43.960 --> 0:30:46.600
<v Speaker 2>in to it. So if you want to deliver those orders,

0:30:46.640 --> 0:30:50.400
<v Speaker 2>dispatch fits in there. If you want to get delivery sorry,

0:30:50.440 --> 0:30:52.920
<v Speaker 2>if you want to get catering demand from a marketplace,

0:30:53.240 --> 0:30:55.840
<v Speaker 2>we have a partnership with easy cater that plugs in there.

0:30:56.400 --> 0:30:59.080
<v Speaker 2>If you want to do payments, O to pay, if

0:30:59.120 --> 0:31:03.920
<v Speaker 2>you want to do marketing out to those catering customers, engage.

0:31:03.960 --> 0:31:07.640
<v Speaker 2>I mean, it's really cool to see the power of

0:31:08.000 --> 0:31:11.640
<v Speaker 2>OLO as a modular platform. A new beachhead and catering

0:31:11.920 --> 0:31:14.760
<v Speaker 2>and then how all those modules can attach to it.

0:31:14.800 --> 0:31:18.720
<v Speaker 2>And I'd say one thing that I love about catering.

0:31:18.960 --> 0:31:22.480
<v Speaker 2>We talked about expanding the relationship with existing customers and

0:31:22.880 --> 0:31:26.400
<v Speaker 2>landing new brands. Catering has been great on both fronts.

0:31:26.440 --> 0:31:29.640
<v Speaker 2>It's great to expand existing relationships. It's an easy upsell,

0:31:29.680 --> 0:31:33.360
<v Speaker 2>it's a layup to stick with the basketball theme. For

0:31:33.640 --> 0:31:36.920
<v Speaker 2>Top twenty five brands, especially who have built a homegrown

0:31:36.960 --> 0:31:39.479
<v Speaker 2>tech stact, many of them have not built a catering solution,

0:31:39.880 --> 0:31:41.640
<v Speaker 2>and if we can cozy up to them with a

0:31:41.680 --> 0:31:45.400
<v Speaker 2>catering solution, show what we can do in the catering realm,

0:31:45.920 --> 0:31:48.720
<v Speaker 2>we think that's a great way to initiate relationships with

0:31:48.760 --> 0:31:52.760
<v Speaker 2>those brands. Hugely active pipeline of conversations in the Top

0:31:52.800 --> 0:31:56.160
<v Speaker 2>twenty five and really everywhere with catering. And then when

0:31:56.160 --> 0:31:58.760
<v Speaker 2>they see, wow, look at what Olo is able to

0:31:58.760 --> 0:32:02.960
<v Speaker 2>do as a SaaS platform that's reliable, that's at scale,

0:32:03.080 --> 0:32:05.560
<v Speaker 2>then they can really start to actively have the debate

0:32:05.600 --> 0:32:07.920
<v Speaker 2>internally of does it really make sense for us to

0:32:07.960 --> 0:32:10.960
<v Speaker 2>be spending hundreds of millions of dollars annually to support

0:32:11.000 --> 0:32:13.680
<v Speaker 2>a homegrown platform when we could do it for half

0:32:13.680 --> 0:32:16.120
<v Speaker 2>the cost or less if we moved over to Olo

0:32:16.120 --> 0:32:20.520
<v Speaker 2>for the core ordering platform and just repurpose our finances

0:32:20.560 --> 0:32:23.400
<v Speaker 2>to build on top. I think that is the most

0:32:23.400 --> 0:32:27.280
<v Speaker 2>exciting thing about catering to me, and just an industry

0:32:27.280 --> 0:32:30.280
<v Speaker 2>that is looking for, you know, found money, they'll take it,

0:32:30.320 --> 0:32:33.560
<v Speaker 2>and catering is a big pot of found money for

0:32:33.680 --> 0:32:37.360
<v Speaker 2>so many brands who have whether it's offices with return

0:32:37.400 --> 0:32:41.680
<v Speaker 2>to office, or school groups or churches or sports teams,

0:32:41.720 --> 0:32:44.560
<v Speaker 2>just a massive audience of folks that want their food

0:32:44.760 --> 0:32:47.240
<v Speaker 2>in that format and we can make it easy, like

0:32:47.440 --> 0:32:51.040
<v Speaker 2>a giant easy button for enabling a catering program.

0:32:51.520 --> 0:32:56.320
<v Speaker 1>Yeah, we're seeing more families catering holidays. Crackerbile just reported

0:32:56.640 --> 0:33:01.280
<v Speaker 1>a really nice quarter and they credited they're catering business

0:33:01.320 --> 0:33:03.400
<v Speaker 1>for Thanksgiving and Christmas.

0:33:04.160 --> 0:33:06.720
<v Speaker 2>I have seen some things in this industry that amaze me.

0:33:07.440 --> 0:33:11.320
<v Speaker 2>At at top of that list is the cracker barrel

0:33:11.440 --> 0:33:16.480
<v Speaker 2>Thanksgiving demand and execution. It is unbelievable how many people

0:33:17.200 --> 0:33:19.400
<v Speaker 2>are using cracker barrel in that way and how they

0:33:19.480 --> 0:33:22.200
<v Speaker 2>nail it year after year. And it's been fun for

0:33:22.320 --> 0:33:24.240
<v Speaker 2>us to be that sort of wind beneath their wings

0:33:24.240 --> 0:33:27.959
<v Speaker 2>from a digital perspective to take this massive demand and

0:33:28.000 --> 0:33:31.040
<v Speaker 2>make it easy for them to operationalize with things like,

0:33:31.760 --> 0:33:34.760
<v Speaker 2>you know, what is their capacity management strategy? How do

0:33:34.840 --> 0:33:36.480
<v Speaker 2>we throttle orders appropriately?

0:33:36.520 --> 0:33:39.720
<v Speaker 3>There's just a lot of you know, x's.

0:33:39.520 --> 0:33:43.000
<v Speaker 2>And o's strategy perspective to make that work the way

0:33:43.080 --> 0:33:45.880
<v Speaker 2>that it does, and they nail it every year.

0:33:45.920 --> 0:33:46.600
<v Speaker 3>It's crazy.

0:33:47.560 --> 0:33:49.920
<v Speaker 1>Yeah, it's exciting what they're what they're doing over there.

0:33:50.480 --> 0:33:52.400
<v Speaker 1>Are you growing the sales team?

0:33:53.600 --> 0:33:56.200
<v Speaker 2>We are, Yeah, And one thing that's been fun for

0:33:56.240 --> 0:34:02.680
<v Speaker 2>me personally is that I have gotten much more. I've

0:34:02.720 --> 0:34:04.960
<v Speaker 2>been much more on the road with the sales team

0:34:05.040 --> 0:34:09.319
<v Speaker 2>over the past quarter. And that's everything from pitches to

0:34:09.400 --> 0:34:14.280
<v Speaker 2>new customers, you know, or talking to existing customers about

0:34:14.440 --> 0:34:15.200
<v Speaker 2>new things.

0:34:14.960 --> 0:34:15.640
<v Speaker 3>That we're doing.

0:34:15.719 --> 0:34:17.960
<v Speaker 2>And I think a lot of the time it's like,

0:34:18.600 --> 0:34:22.480
<v Speaker 2>you know us as the ordering platform, and we're so

0:34:22.560 --> 0:34:24.640
<v Speaker 2>much more than that. Now, let us reintroduce all the

0:34:24.680 --> 0:34:27.319
<v Speaker 2>things that we're doing and why what we've done with

0:34:27.400 --> 0:34:30.920
<v Speaker 2>you and ordering oftentimes for many years is like the

0:34:31.000 --> 0:34:36.120
<v Speaker 2>seed crystal for this much larger guest engagement opportunity we're

0:34:36.160 --> 0:34:40.480
<v Speaker 2>now thinking about as ultimately guest data leading to guest

0:34:40.520 --> 0:34:46.520
<v Speaker 2>intelligence and then leading to guest experience management as a practice.

0:34:46.640 --> 0:34:48.759
<v Speaker 2>That's really what OLO is today. So it's been fun

0:34:48.800 --> 0:34:50.560
<v Speaker 2>for me. It's sort of like a new founding moment

0:34:50.640 --> 0:34:54.480
<v Speaker 2>to be out with customers, telling that much larger story

0:34:55.040 --> 0:34:57.560
<v Speaker 2>and explaining to them, why again say this to my

0:34:57.600 --> 0:34:59.719
<v Speaker 2>team all the time. We've come a long way. It's

0:34:59.719 --> 0:35:02.360
<v Speaker 2>been twenty years, but we're not at the top of

0:35:02.400 --> 0:35:04.920
<v Speaker 2>Everest right now. Like right now we're at base camp.

0:35:05.000 --> 0:35:07.840
<v Speaker 2>Like it's been hard, we're catching our breath, but like

0:35:07.960 --> 0:35:10.200
<v Speaker 2>I see the mountaintop and it's beautiful up there, and

0:35:10.640 --> 0:35:12.560
<v Speaker 2>that's where we're going to go over the next twenty years.

0:35:12.560 --> 0:35:16.680
<v Speaker 2>And it's all around this guest data, guest intelligence, guest

0:35:16.760 --> 0:35:21.319
<v Speaker 2>experience management vision. So telling that story to our customers

0:35:21.360 --> 0:35:25.280
<v Speaker 2>and having the credibility of the relationship that we've built

0:35:25.360 --> 0:35:29.400
<v Speaker 2>over that time, but showing them what's next is super

0:35:29.560 --> 0:35:30.600
<v Speaker 2>energizing for me.

0:35:31.000 --> 0:35:32.239
<v Speaker 3>So I'm having fun.

0:35:33.000 --> 0:35:35.560
<v Speaker 1>That's awesome, man, I think that's a perfect place to

0:35:35.640 --> 0:35:39.680
<v Speaker 1>wrap it up. Thanks again for doing this, man. I

0:35:39.840 --> 0:35:42.680
<v Speaker 1>love I love following OLO and following the story, and

0:35:42.960 --> 0:35:47.440
<v Speaker 1>I'm looking forward, you know, to continuing tracking your progress.

0:35:48.200 --> 0:35:50.080
<v Speaker 2>Thanks Mike, Thank you for chopping it up with me.

0:35:50.400 --> 0:35:53.200
<v Speaker 1>Yeah, sure thing man. I'm sure I'll see you out

0:35:53.200 --> 0:35:56.560
<v Speaker 1>and about on the restaurant conference circuit this year. I

0:35:56.560 --> 0:35:58.560
<v Speaker 1>want to thank the audience for tuning in. Go to

0:35:58.600 --> 0:36:01.120
<v Speaker 1>olo dot com to find out more about the company.

0:36:01.480 --> 0:36:03.560
<v Speaker 1>If you liked our discussion, please share it with your

0:36:03.600 --> 0:36:07.000
<v Speaker 1>friends and colleagues. Check back next week for an interview

0:36:07.000 --> 0:36:09.560
<v Speaker 1>with Liz Williams, CEO of l Poyo Loco