TikTok Gets Into The Restaurant Business

Happy Holidays! Hopefully, you are spending time with your friends and family and staying safe. There won’t be a newsletter next week. I’ll be taking some time off to recharge in preparation for the next year and I hope that you’ll be doing the same. Be on the lookout for the next newsletter on January 7th.

This Week’s Edition:

• TikTok will launch delivery-only kitchens featuring viral dishes

• Changes are coming to TikTok’s algorithm to protect users

• Forever 21 joins Roblox to connect with consumers in a new way

TikTok Introduces Delivery-Only TikTok Kitchens

TikTok is partnering with Virtual Dining Concepts (VDC) to launch over 300 delivery-only kitchens in the U.S. TikTok Kitchens will operate out of existing restaurants, including Buca Di Beppo and Bertucci’s, which are owned by VDC co-founder, Robert Earl.

Menu items will be inspired by TikTok viral recipes such as baked feta pasta, smash burgers, and corn ribs. To mirror current trends, the menu will be updated each quarter with new dishes that have gone viral on the platform.

A portion of the proceeds from TikTok Kitchens will go towards the creators who inspired the recipes and encourage and assist other creators in expressing themselves on the platform further.

TikTok's venture into the restaurant sector makes sense, given that food and cooking content are among its most popular categories.

TikTok is following in the footsteps of popular YouTuber Mr. Beast, who, along with VDC, has opened Mr. Beast Burger restaurants across the country.

Unlike Mr. Beast, this doesn’t seem to be a revenue play. The revenue generated from these kitchens will likely be a fraction of what TikTok generates from its advertising business. It really feels more like TikTok is expanding its brand into IRL experiences and showcasing its impact on culture and our daily lives beyond its app.

Despite a lack of details about which creators will be rewarded and how much they will receive, this is also a way for TikTok to further bolster its ties with creators by providing them with a revenue stream.

TikTok has been one of the biggest champions of creators and that doesn't seem to be changing anytime soon, as creators are increasingly becoming the centerpiece for companies to connect with consumers.

If TikTok Kitchens is a success, it gives TikTok the playground to bring other app trends to life. As an example, #TikTokMadeMeBuy could be brought to life by launching pop-ups across the country that sell popular products featured in the trend and, similarly, reward creators who are fueling the trends.

TikTok Announces Changes To The For You Feed

TikTok recently announced it would be making changes to its algorithm. By making these changes, the platform aims to make sure users feel safe on the app and are exposed to positive content.

Now, the platform will diversify content recommendations so users aren't served too much of the same content. This is especially relevant for content connected to sensitive topics like extreme dieting or fitness, sadness, or breakups. This will also prevent people from seeing videos from the same creators or with the same sounds back to back.

In collaboration with experts in medicine, clinical psychology, and AI ethics, TikTok is redesigning the For You feed to show viewers a wider range of topics, creators, and content. In addition, the company is developing a tool that lets users choose which words or hashtags are associated with content that they do not want to see.

Social media's negative impact has been the subject of intense discussion throughout 2021. Although TikTok has become increasingly popular and addictive, it has also received a great deal of scrutiny, specifically with school-based challenges this past fall.

TikTok's algorithm changes are part of a trend where platforms have begun to give users more control over what they see. This utilization of technology can result in a more positive user experience because it ensures that viewers see content that they enjoy, without seeing too much of one given topic.

The ability of TikTok to show people the content they love over and over again through its algorithm has been one of its most appealing features, so it will be interesting to see what effect the revamped algorithms will have on creators and everyday users alike. Will creators' reach be limited? Will users still be surfaced with the content they love?

As time goes on, those questions will be answered, but overall, this is a smart move and shows TikTok acknowledging the negative impact that its platform can have, which can help distance itself from Meta and the scrutiny it continues to receive.

Forever 21 Joins Gaming Platform Roblox

Forever 21 joined forces with Virtual Brand, a metaverse creation company to build a fashion retail experience on Roblox.

On Forever 21 Shop City, users can customize their own shops to sell and buy Forever 21 merchandise in an effort to become the “top shop.”

Users can also role-play and meet up with friends throughout Forever 21 Shop City’s four themed districts in entertainment, obstacle course, food court, and yellow carpet.

The retailer has also collaborated with notable Roblox creators such as Sam Jordan, who helped design exclusive items for Forever 21 Shop City. Other creators like KrystinPlays, Shaylo, and the Sopo Squad helped design stores.

On the 21st of every month, Forever 21 Shop City will host Forever 21 Day, which features the integration of new themed content and activities.

Forever 21 has become the newest brand to bring its brand and products into the metaverse.

With Nike's recent acquisition of RTFKT and Adidas' recent launch of an NFT, brands are slowly finding ways to connect the physical and digital worlds. This allows them to reach a growing population of consumers who are exploring the metaverse via NFTs and gaming platforms like Roblox.

Forever 21 leverages some of today's biggest trends through its Forever 21 Shop City that revolves around e-commerce, gaming, creators, and the metaverse.

One thing that shouldn’t be overlooked is the role that creators are playing in Forever 21’s recent move. By bringing creators into the fold, Forever 21 adds credibility to this project. Notably, Forever 21 opted to work with creators who are native to Roblox instead of the typical fashion creators they work with on other activations.

As a result of launching a Roblox presence, Forever 21 can engage its existing customers in a new way. They can also reach prospects, especially the younger generation, who spend hours on digital platforms like Roblox, which has more than 50 million daily active users.

Brands today have the goal of being present across all social media platforms, but with the eventual explosion of Web3, that goal will soon extend to NFTs, Roblox, crypto, and the metaverse.

Quick Hits

• Instagram is exploring ways to integrate NFTs into its app. During a recent AMA, Instagram head, Adam Mosseri, revealed the company is actively exploring NFTs and how they can make them more accessible to a wider audience.

• Meta shared updates on its newsletter feature, Bulletin. Hosting over 115 publications, Meta plans to provide writers with more customization options in their publishing tools and more perks such as design and legal services.

• Meta redesigned campaign ad objectivesin Ads Manager. The number of available campaign objective options has been reduced from 11 to 6 to help advertisers simplify and optimize their ad campaign setups.

• TikTok is testing a Repost feature. Currently available to select users, the feature enables users to repost to share other users’ TikTok videos across their profile.

• YouTube expanded the Shorts fund to over 30 more countries. Creators in countries such as Argentina, Australia, Canada, Egypt, Germany, Italy, South Korea, and more now have the ability to be rewarded with cash for Shorts content.

• YouTube announced several updates to the YouTube Studio app. The updates include new features such as search filters for comments and analytics. The updates make it easier to manage channels on the go and mimic the functionality of the YouTube experience on desktop.

• Snapchat released an Avatar lens AR filter. The new filter lets users create a Sims-like character of themselves.

• Discord launched a new server timeout feature to help communities stay positive. Moderators and admins can use the feature to prevent users from interacting with a server for as little as 60 seconds or as long as one week.

• Patreon will double in size in 2022. The company revealed its plans to hire 600 people in the new year to help work on new features and projects such as native video support, a revamped app design, deeper data and analytics, and more.

• OpenSea has added a Photography category to its platform. Creators can now label their NFTs as 'Photography' and make them discoverable under a section dedicated to photography, in addition to possibly being featured as trending collections.

From fan tokens to feed fatigue: The year in fashion marketing (Vogue Business)

Vogue Business recently published an article highlighting the biggest marketing trends for 2021 including the changing role of social media, community, and co-creation, and the evolution of the creator economy. I had the pleasure of chatting with editor Kati Chitrakorn and had a few of my views included in the article.

What I’m Reading

• Retailers find TikTok a ‘sunny place’ for advertising (New York Times)

• Leveraging the ‘creator economy,’ platforms like Pinterest and Shutterfly drive growth while helping entrepreneurs scale (US Chamber of Commerce)

• Following its acquisition by Wacoal, Lively is using its ambassador program to drive growth (Modern Retail)

• How the pandemic supercharged the creator economy in 2021 (Engadget)