Mobile Ordering With Ritual: Combating the Effects of Lunchflation

The price of food has seen an exponential increase over the past two years. It marks the largest percentage rise seen in the last four decades. Ritual has the answer.
Jen Kelly
June 22, 2022

In what seems like a heartbeat, suddenly the price of pretty much everything has increased—especially food. In fact, since this time last year the U.S Bureau of Labor Statistics reported a 7.2% increase in the index for food away from home in April. Overall, food prices rose 9.4% for the month, marking the largest single percentage increase seen since April 1981.

For the average American worker, there’s actually a word for the increased price of food. It's called “lunchflation,” and it’s a very real component to modern life in this brave, new age of ours, and it carries far-reaching ramifications. Even morning coffee is being affected by an increase in prices, when Starbucks recently announced it was forced to raise prices to offset the effects of supply chain disruptions. 

Over the course of the last two years, office workers have discovered a significant price increase among lunch staples. Research has found that the price of lunch fare in major American cities has risen since the beginning of the pandemic by the following margins: 

  • Wraps: +18%
  • Sandwiches: +14%
  • Salads: +11%
  • Burgers: +8%

Most employees are noticing a price increase of between $4 and $10 per order. This is a substantial difference, especially when you factor in other variables such as the astronomical cost of gasoline. 

The good news is that mobile ordering solutions such as Ritual and Ritual for Companies help mitigate the effects of lunchflation by putting more food on your plate at a lower cost. During a time when our lunch orders are withering due to inflation, low-fee solutions like Ritual act like a shield against lunchflation by providing you and your employees with more lunch for your buck.

Saving Money on Delivery Fees and Markups 

In today's inflationary environment, it's more expensive to do pretty much anything. However, even prior to lunchflation ramping up, there was the issue of delivery fees and markups with food delivery apps. 

Increasingly, food delivery apps have become even more popular with consumers. Yet, research has found that many of the popular apps charge as much as 91% more than what consumers paid in restaurants for the identical order.

Therefore an average of 37% is spent on delivery fees and markups. Here is an example of cost breakdown ordering meals for your employees to the office using food delivery apps.

A $4MM investment (1,000 employees x $15 per day) less 37% equals:

  • $2.5MM of actual value in food
  • $1.5MM spent on delivery fees and markups
  • Difference by day: $15 vs. $9.69
  • By week: $75 vs. $46

With Ritual, you can avoid these costly fees and put more lunch money in your employees’ pockets. Simply cutting back on delivery fees and other markups can save your organizations millions of dollars in unnecessary expenses and increase each of your team member’s lunch budget by over one-third.

Mobile Ordering With Ritual for Companies

As a primary product, Ritual for Companies is the most powerful mobile ordering platform available to companies. Organizations can welcome back team members with customizable meal plans offering a huge selection of restaurant options that will satisfy any palate. 

Not only will organizations attract and retain exceptional talent, but increase team productivity and employee satisfaction. Moreover, Ritual for Companies offers wholly customizable corporate meal programs that will work with any budget.

How Does Ritual for Companies Work?

Below is an example of how Ritual for Companies works:

  • ABC  Ltd. has 50 employees and signs up for Ritual for Companies
  • Within a 1 km radius of their office location, there are 25 Ritual-partnered eateries
  • ABC Ltd. issues a $20 daily meal credit to each of its 50 team members
  • ABC Ltd. sets its pre-selected radius to 1km around the office location, thus enabling all 100 employees to redeem their meal credits at any of the 20 Ritual-partnered eateries
  • ABC Ltd. opts to set a meal credit expiration for the next day if left unused
  • As a result, all 50 ABC Ltd. employees are incentivized to return to the office and enjoy meals together from local eateries 

The result? Every employee gets more money in their pocket to spend on lunch that they would under any food delivery app or competing platform. 

Geolocation Credits With Ritual 

In addition, team members are incentivized to return to the office with location-based geolocation credits. Using location-based services (LBS) technology, simply preselect a radius around your office location and issue meal credits to employees. Next, set an expiration day for your team members to redeem the geolocation credits.

Group Ordering With Ritual

A core solution of Ritual for Companies is group ordering. All team members can enjoy an individually customized meal with features like either an option for delivery or pick up, pay in full or split the order, and loyalty stamps for company credits on eligible orders. 

Group ordering with Ritual for Companies works as follows:

  • Create an order link by selecting a restaurant, payment method, number of team members, and delivery/pickup option.
  • Share the order link via Slack, and your team will individually join the order and make their respective food selections.
  • Review the order prior to the preselected order cutoff period to ensure accuracy or add additional team members.

Ritual for Companies Helps You Combat Lunchflation

When you sign up with Ritual for Companies, you pay no fees - whether they be setup or administrative fees. Plus, organizations only pay when team members are utilizing meal credits. Ultimately, you pay less money and get more food than you would elsewhere for every dollar spent.

Prices are universally increasing due to lunchflation. With food prices at levels not seen in four decades, saving both time and money is crucial for every organization, and Ritual can help you do just that. 

Ritual for Companies offers cost-saving solutions with completely customizable meal plans at no additional costs for your company. At a time when lunch costs are on the rise, Ritual for Companies ensures that money is being spent not on hidden delivery fees or markups, but on what is important—your team members, and the food they love.

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Jen Kelly
Part of the founding team, Jen is the Head of Global Sales at Ritual. Wearing many hats, she is a highly experienced leader with a demonstrated history of sales management, sales operations and market expansion in the information technology and services industries. She enjoys writing about leadership, coaching and management, entrepreneurship, sales operations, and more.
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Jen Kelly
Part of the founding team, Jen is the Head of Global Sales at Ritual. Wearing many hats, she is a highly experienced leader with a demonstrated history of sales management, sales operations and market expansion in the information technology and services industries. She enjoys writing about leadership, coaching and management, entrepreneurship, sales operations, and more.