Menulog has “missed the mark on what customers really want”, according to Taurus Marketing CEO Sharon Williams.
The food delivery platform will shut down its Australian operations within two weeks, ending a 20-year run in the local market that spanned celebrity campaigns, brand reinventions and fierce competition.
Menulog confirmed it will stop taking orders from midnight on Wednesday, November 26, urging customers to redeem any outstanding credits or vouchers before that date.
Strategies for navigating competitive and changing markets
Williams said Menulog is competing with Uber Eats, which is very well marketed.
“People go to the Uber App for a range of services – a trip and food – so there’s more phone ‘real estate’ and more opportunity to market to consumers offering them reminders to order food and packaging up a consumer solution,” she told Mediaweek.
“On the whole the motto is ‘Constant change is here to stay’. Change is happening faster and in an extraordinary way right now. As consumers have more choice and the ability to swap and change, brands need to be the same – nimble and flexible to change, to respond to consumers needs.
“It’s more important than ever for brands to listen – and get feedback. Test, implement, feedback. Use predictive technology where possible to assess trends. Good listening is a great way to start to sense the change BEFORE campaigns become a disaster.
“Since Covid nothing is the ‘norm’. Ultimately it looks like the UK owners pulled back on Australia as a region. This is a sensible decision, as global brands analyse global strategies, especially if the country isn’t financially sustainable.”
Lessons companies can learn from Menulog’s mistakes
Williams believes Menulog either hadn’t secured bridging funding to ride a downturn or that headquarters decided not to further invest in the Australian business.
“There has been talk that the employment laws and employment model was a contributing factor – we have to make it easy for brands to employ people in this country and the current government is making it very hard for local and overseas employers,” she said.
“You’d also have to ask the question did they over pay for their marketing campaigns with celebrity endorsements which did seem to last a long time, beyond that initial surprise with the first few stars
“And competition is fierce here from Uber Eats and DoorDash in a country with a population so thin and dispersed. In the UK, streets are close and there are 56 million people plus. We’ve got half that here spread over a much larger geography even in cities so the opportunity is smaller.
“So, the market is only so big to take services with similar offerings. It’s a constant battle to get to the top of a competitive market. It’s always sad but a lesson to others.”
Crisis management and communication during mass layoffs
Williams said there will likely be more than 120 layoffs.
“The staff may need counselling, especially in the transition to other jobs – as well as the fact they need to be paid appropriately. Menulog has always tried to look after staff so I expect this will be smooth,” she said.
“It is of course, always good to treat people well at the end of job tenure so their brand recall and experience is positive – after all, they are the tellers of the story moving forward and Menulog had a strong employment story to their brand narrative.
“There are also HR consultants and companies that specialise in layoff counsel brands can tap into.”