Why has the average order value for Just Eat Takeaway's sushi restaurants dropped by 15% in the past month?

Introduction

The recent 15% drop in average order value (AOV) for Just Eat Takeaway's sushi restaurants is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for our business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal effect. Has this drop coincided with any particular season or event?

Why it matters: Seasonal trends can significantly impact food ordering patterns. Expected answer: No specific seasonal event correlates with the drop. Impact on approach: If seasonal, we'd focus on adapting our strategy accordingly.

• Considering user segments, I'm curious if this drop is uniform across all customer types. Have we seen any differences in ordering patterns between new and returning customers?

Why it matters: Different user segments may be responding differently to our offerings. Expected answer: The drop is more pronounced among returning customers. Impact on approach: We'd need to investigate factors affecting customer loyalty and retention.

• Thinking about recent changes, have there been any updates to our app or website that might have affected the sushi ordering experience?

Why it matters: Technical issues or UX changes could be deterring customers from larger orders. Expected answer: A minor update was rolled out to the restaurant listing page last month. Impact on approach: We'd need to analyze the impact of this update on user behavior.

• Considering market dynamics, has there been any significant change in sushi prices or promotions from our restaurant partners?

Why it matters: Pricing changes could directly impact AOV. Expected answer: No major price changes, but some restaurants have reduced their promotional offers. Impact on approach: We'd need to evaluate the impact of reduced promotions on ordering behavior.