Taco Bell Recycling is Better for All

 

The world is looking for signs that things are getting better, life is normal, and doing what leaders do help everyone by doing better.  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, stated, “Taco Bell is giving consumers a glimpse of the ‘better for you’ signs they are looking for by helping clean up litter via using new recyclables.” That is going to drive new electricity into the Taco Bell brand.”

How is your brand building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new menu related products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, music, developing brands, unique urban hemp clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different.  How is your brand building new electricity?

Taco Bell customers have an obsession with its hot sauce packets, with 8.2 billion sauce packets used in the U.S. each year. The catch is today they're not recyclable. So, Taco Bell will be collaborating with international recycling leader TerraCycle later this year to give its sauce packets a spicier second life that doesn't involve a landfill. Taco Bell, no stranger to industry firsts, is the first quick-service restaurant brand to partner with TerraCycle to tackle recycling flexible film packets.

Think about the fact that 8.2 billion sauce packets recycled, and the difference that can make.  It is better for all of us. Taco Bell will be launching a U.S. pilot program in 2021 to recycle its iconic hot sauce packets.

TerraCycle is renowned for collecting traditionally non-recyclable materials, cleaning them, then melting and remolding them into hard plastic that can be used to make new recycled products. This means that one day, used sauce packets could have an exciting future as something totally new.

Liz Matthews, Taco Bell's Global Chief Food Innovation Officer, stated, "In the food industry today, there is no widely available solution for recycling the flexible film packets that are so commonly used for condiments," … "So, we're thrilled to leverage the expertise of TerraCycle to recycle our iconic sauce packet packaging in a way that's as bold and innovative as our menu."

So, the ability to recycle sauce packets is very important in achieving Taco Bell's goal of making all consumer-facing packaging recyclable, compostable, or reusable by 2025 in restaurants across the globe. The pilot launch is slated to take place later this year, and its results will determine the most viable solutions moving forward, including potential program expansion.

TerraCycle CEO and Founder, Tom Szaky, stated, "Now more than ever, consumers don't want to sacrifice the planet no matter how delicious the meal," "Together, Taco Bell and TerraCycle will push the quick service industry by finally finding a way to recycle this type of product. This effort takes us one step closer to keeping packets out of landfills and our mission of 'Eliminating the Idea of Waste.'"

No need to wait, are you eager to recycle their sauce packets, there are steps they currently can take to leave a lighter footprint. Be sure to check the specific recycling and composting guidelines of your local municipality when disposing packaging, and if you don't use each packet from your Taco Bell order, save it for later to add some kick to other meals

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Consumers Integrated Lifestyle Drives Digital Coupons

 

Let’s cut to the chase, simply put for first time, digital coupons overtake print circulars in redemption.  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been informing regular readers for 17 years that Hand Held Food for Immediate Consumption and Hand-Held Marketing go “Hand in Hand”. 

Gen Z and Millennials the two most coveted food consumer cohorts, are also digital natives driving the adoption of and migration to digital marketing growth.  In a new report by Inmar Intelligence found by share of volume, digital load-to-card saw a 27% increase in coupon redemption last year and that digital load-to-card accounted for nearly 30% of coupons used in 2020.

The battle for Share of Stomach is evolving as fast as the battle of digital coupons versus print circulars, according Inmar Intelligence. In fact, in 2020, digital load-to-card (L2C) coupon redemption exceeded that of paper free-standing inserts (FSIs) and was the most redeemed coupon method for the first time ever, according to Inmar’s Promotion Industry Analysis. Digital L2C accounted for 29.3% of all redemption volume, compared with 28% for FSIs.

So, according to Inmar, by share of volume, digital L2C tallied a 27% increase in redemption last year.  Once again it is customer migration driving the shift to digital. But let’s state the obvious less than 28.5% of Americans get a newspaper delivered to the home on weekday according to the latest numbers we could find.  While 81% of Americans have a smart phone and it is estimated that 285 million will have one in the US by 2023.  

 Overall redemption volume fell 21% to 1.05 billion coupons in 2020, slightly smaller than 24% decline to 1.32 billion coupons in 2019. In addition, as more consumers engaged in hybrid shopping behavior — buying groceries both in-store and online — their opportunities to use paper coupons dissipated while engagement with digital coupons accelerated, noted Inmar.

We were surprised to learn that total coupon distribution in 2020 sank 15% to 200.13 billion, larger than the 12% decrease to 235.46 billion coupons distributed in 2019. Inmar said the drop-off mostly reflects the impact on FSIs from falling newspaper circulation. FSIs have represented about 90% of coupon distribution for each of the past three years and dictate the overall direction of distribution trends, noted Inmar.

Overall coupon distribution fell 15% in 2020, with paper free-standing inserts (FSIs) representing about 90% of coupons distributed.

This we understood, digital L2C was the second most-distributed coupon method in 2020 and accounted for 3.6% of coupon distribution volume, lifted by a 6% year-over-year gain. Load-to-card, or electronic discount (EDO), has seen steady growth in coupon distribution share over the past four years, Inmar said.

Spencer Baird, executive vice president at Inmar and president of its MarTech division, stated, “Growth in digital coupon redemption has been upward trending now for the past couple of years, which has no doubt been exacerbated by the COVID-19 pandemic,” “Digital is now a channel preferred across generations and, with many of today’s consumers doing their shopping online, digital coupons provide the most convenience and personalization.”

Indeed, Inmar’s 2021 Shopper Behavior Study revealed that digital coupon use by Generation X shoppers climbed 6% to 69% in 2021 from 65% in 2020. The gain was even bigger among Baby Boomers, whose use of digital coupons jumped 18% YOY increase from 49 percent in 2020 to 58 percent in 2021, indicating continued demand for digital.

The generations with the highest percentage of shoppers seeking digital coupons before going grocery shopping at the store were Boomers at 59% and Gen Xers at 54%, the study found. Similarly, 94% of Gen X and 86% of Boomer shoppers polled said personalized coupons and promotions were key factors when joining a loyalty program. In turn, 50% of Boomers and 63% of Gen Xers agreed or strongly agreed that they use digital coupons through their loyalty account or card because it’s easier than using paper coupons.

While we note, Inmar’s reports quoted including data taken during the pandemic, Johnson’s stated the ongoing migration of Gen Z and Millennials to Grocerant Niche meals and meal components has been a key drive for 5 years.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Pizza Factory Smaller is Faster Fresher and Fun

 

Success does leave clues and one clue the Pizza Factory picked-up and is leveraging to drive growth is that less is more.  A smaller footprint, cost less to buildout, while helping to drive top line sales and bottom-line profits according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

So, when Pizza Factory released its renderings for a Pizza Factory Express aka a new quick-service format to support the brand’s thriving carryout and delivery business industry veterans knew it would attract new franchisee and incremental interest from current franchisees.

Consumers want to get in and out fast, Pizza Factory knows that.  Consumers do want the option to pick-up their food on the way home so the development was called “Convenience Perfected,”.

The new prototype focuses on today’s consumers cravings for fresh, quality food served fast. Whether fans stop in to grab a hot pizza or they order calzones from home, the Express model further strengthens the brand’s ability to provide a multitude of off-premise dining options.

You can tell that the team at Pizza Factory has the pulse of today’s consumers as they are touting a 27 percent same-store-sales increase last month. In fact, March 2021 systemwide represented the brand’s best March performance in five years—ultimately signaling Pizza Factory’s upward trajectory and recession-resistant operations.

So, get this the starting at 1,000 sq. ft., the Express model’s small footprint allows new and existing franchisees to grow into new, untapped markets while also eliminating many of the operating costs and furniture, fixtures and equipment (FF&E) expenses associated with larger restaurant prototypes.

Yet that is not all, the format requires fewer employees to run the show, ultimately saving on labor costs, but allowing a hyper-effective team to serve at-home on on-the-go guests who traditionally have higher ticket averages.

Pizza Factory CEO Mary Jane Riva, stated “Efficiency, convenience and quality are foundational to Pizza Factory, and we led with these business drivers in mind when building the Express blueprint,” …“The Express debut is such a significant milestone for our development goals, as the format alone allows for Pizza Factory to grow into new communities and untraditional spaces. We’re confident the model will support the advanced delivery and carryout operations we already have in place, while providing new ways for our guests to enjoy a diverse menu of fresh food.”

With a new aggressive development effort underway, Pizza Factory is actively growing from its West Coast roots and adding restaurants across the nation. Most recently the brand announced its expansion in Texas and its first Southeast franchise deal in Georgia, demonstrating the concept’s ability to enter new states.

As Pizza Factory enters this new era of growth, the company is offering an aggressive development incentive program including a reduced franchise fee, waived royalties for three months and more. This applies to new franchisees exploring conversions or new builds. How are you evolving?

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Restaurant Customer Traffic Declines

 

Chain Restaurant menu prices continue to rise up 3.8% in April on a year-to-date basis, all the while wholesale food prices were up 3.9% year to date, according to the Bureau of Labor Statistics.  It’s looks as if restaurants are doing only slightly better than wholesale food prices.  That is a good start as all restaurants continue to accrue transitory cost.  Those transitory cost will continue to go up and down for at least the next 36 months.  So, who is after restaurant customers?  Companies that have positioned themselves by evolving business models better than most legacy chain restaurants according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®?

It’s time that chain restaurants should care?  Why, simply put they are losing customer relevance with customers and according to Johnson, in fact same-store traffic was down by 9.4% during March on a two-year comparison basis.  That’s not good.

While food consumers are a highly fragmented group there are universal commonalities creating channel disruptions. Consumers want, what they want, when they want it! Increasingly they want Grocerant niche Ready-2-Eat and Heat-N-Eat fresh food meals and meal components.  

Waiting for the ‘old days’ to come back is not a strategy that will work. Today, it is all about the consumer buying what the type of food they want, where they buy it ,and how they buy it is in flux. You can buy food from large format food retailers the ilk of Safeway Lifestyle stores, Kroger, Walmart, Ikea, or Smaller Format retailers like Trader Joe, McDonald’s, Burger King, Dollar Stores, Walgreens, and even fast casual restaurants.

Regular readers of this blog know that line between restaurants and food retailers is growing ever thinner. The fight for America's food dollars continues to intensify as consumers find fresh prepared Ready-2-Eat food options at a wide and growing array of outlets across almost every channel: convenience stores, chain drug stores, restaurants, grocery stores, club stores, vending and even more non-food retailers like dollar stores and most cost less per meal than at most chain restaurants. That helps drive relevance.

Food manufacturers, retailers and restaurants worry about choice overload, consumers have embraced their new choices and show no signs of returning to the old ways. This fight is taking place in what is called the grocerant niche.  I ask are you evolving your business model?

The restaurant industry is not an industry known for trying to be first as in fastest to market with an ideation, food or technology advance. In the United States the larger the chain in almost all cases the more slowly they are to adopt something than a smaller chain or independent restaurants will. Chain restaurant’s goal is simple feed one meal at a time in the restaurant while protecting and edifying the brand.

Historically chain restaurant leaders have denied the credibility of start-up competitors as non-relevant. The simple fact is convenience stores, grocery stores service deli’s, and dollar stores are not start-ups? They are not raising prices on fresh prepared food they are introducing more new meal component options with full flavor and at very competitive price points.  Business models evolve.  Is your brand edifying your menu, footprint, and messaging with today’s relevance? 

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Get the Supergroup BTS McDonald's Meal Now

McDonalds excels at expanding the brands reach, relevance, while refreshing its look.  That is the kind of restaurant industry leadership that was needed to stop the customer count migration from restaurants to other non-traditional fresh food retailers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® while driving new electricity into brand messaging.

All restaurant brands increasingly need to build lasting partnership to drive top line sales and bottom-line profits according to Johnson.  In a battle for Share of Stomach branded retailers must have an understanding where the consumers shop, when they are thirsty, hungry and what music is ‘hot’ with their prime target customer. 

So, McDonald’s is a global brand, and is acting the way a global leader should by forming a partnership / collaboration the ‘hottest music group in the world right now,  21st century global pop icons, BTS.

Creating new electricity, this one-of-a-kind menu “tour” officially kicks off on May 26 in the U.S., when customers can enjoy the BTS Meal at participating restaurants nationwide. The superstar band’s signature order includes a 10-piece Chicken McNuggets, medium World Famous Fries, medium Coke and for the first time ever in the U.S., Sweet Chili and Cajun dipping sauces inspired by popular recipes from McDonald’s South Korea. You had better get in line as this special might go fast.

“The band has great memories with McDonald’s. We’re excited about this collaboration and can’t wait to share the BTS Meal with the world,” says BIGHIT MUSIC, label of BTS.

Most of your kids know that since 2013, BTS has topped charts and brought people together from all over the world through their music and positive messages. Following the successful launch of McDonald’s celebrity signature orders program last year, BTS is the latest icon to have their signature menu items featured at participating restaurants. However, they’ll be the first celebs to share their order with customers worldwide. Meaning, for the first time since McDonald’s launched celebrity signature orders, the BTS Meal will be available globally in nearly 50 countries.

Over the next few months, customers everywhere will find themselves that much closer to their favorite artists.

“BTS truly lights up the world stage, uniting people across the globe through their music,” says Morgan Flatley, Chief Marketing Officer, McDonald’s USA. “We’re excited to bring customers even closer to their beloved band in a way only McDonald’s can – through our delicious food – when we introduce the BTS signature order on our menu next month."

U.S. customers will be able to order the BTS Meal in-restaurant, through contactless mobile order and pay in the McDonald’s App, at the Drive Thru or via McDelivery. So, mark your calendars for May 26, and be sure to keep an eye out on McDonald’s social channels (@mcdonalds) for regular updates on the collab, including even more surprises in the coming weeks.

How is your brand building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new menu related products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, music, developing brands, unique urban hemp clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different.  How is your brand building new electricity?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter 

Autonomously Deliver Not So Far Off

 

All of this talk about transitory cost, transitory inflation, and transitory payroll cost is a bunch of B…S… according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Johnson stated “employees don’t want to accept less pay, new technology cost money, and inflation is a fry cry from deflation.”  

At the intersection of reducing cost and integrating technology is a company called Cleveron.  It is an Estonian tech company that has developed products built to store and robotically distribute e-commerce orders for customer pickup, has now developed a product to autonomously deliver them. That’s right consumers employee less in the long run it just might save you money.  In the mean time it is another transitory cost. 

Named the Cleveron 701, a semi-autonomous, remote-controlled electric delivery vehicle similar in some ways to the Tortoise vehicle now testing home delivery in Northern California for Albertsons that regular readers of this blog have read about. Cleveron said its initial units are being piloted in Estonia now, and anticipates it can begin mass production in 2023.

Cleveron CEO Arno Kütt, stated, “With our new driverless semi-autonomous vehicle, we are enabling retailers and logistics companies to solve complex and costly last-mile delivery challenges while satisfying consumer demand for same day, and in some cases, same hour deliveries,”… “Since Cleveron received the first license in Europe to test drive an unmanned vehicle on the streets of Estonia last year without restrictions, we have been amazed at how easily Cleveron 701 has become an organic part of the city life. What’s more, consumers can get groceries, parcels, restaurant deliveries or even ice cream from an environmentally friendly delivery robot.”

So, not quite ready for prime time, unlike fully self-driving vehicles, the 701 is piloted by a remote driver watching a live feed from on-board cameras in a style not unlike a video game like Mario Kart: This practice is potentially more efficient and environmentally friendly than traditional driver fleets and is seen as a faster way to achieve autonomous delivery capabilities for appropriate orders while communities wrestle with complex regulations and safety concerns around fully driverless vehicles.

However, Cleveron said the 701 would drive in low-traffic areas, such as suburbs, to deliver goods within a 15- to 30-minute driving range of a retailer, fulfillment center or a dark store. It can travel up 30 miles per hour and has a load capacity of about 500 pounds. The unit can be modified to operate as a grocery delivery vehicle with temperature-controlled compartments, but could also serve as a high-tech coffee robot or ice-cream truck, Cleveron said in a release.

Success does leave clues. Today, transitory cost, should be an ongoing fixture on your P&L.  One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Grocerant Niche Packaging Makes Can Drive Sales

What’s for dinner? You all know that cooking dinner is a task most Americans would rather skip if they could.  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated “the line between retail food segments continues to grow thinner and retailers with the best solution for dinner will garner not only dinner customers incremental day-part trial as well”.

The simple fast is 63+% of all restaurant traffic is ‘off-premise’. The best way for any retailer to drive incremental business today is with packaging.  More and more customers want to eat at home but want a restaurant quality meal without cooking according to Johnson. Consumers don’t want to take time to cook.

Back in the day, gas stations used to offer one ‘holiday glass collectable’ will a fill-up.  Fast food chains use to do the same if you bought a ‘meal-deal’ which was new at the time.  Well, what goes around, comes around.

The ramekins pictured above are filled with seafood and come from a grocery store.  Those ramekins are a proportioned meal for one.  Remember that in the US 65.3% of all US Households are comprised of one or two people.  That ramekin is a perfect meal solution according to Johnson.  Why, a two-person household can have two different entrees that can be mix and matched into a perfect meal for two or they can be eaten one at a time.

If you are a restaurant how many options do you give customer for packaging a meal?  Do you use Steamer Bags that are ready to microwave or bake for takeout?  Do you let customer take the plate? Collect the plate or glassware?  Doe’s you takeout packaging look more like yesterday than tomorrow?

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information. 

Mom and Dad are Tired of Cooking

 

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food had been driving customer migration in every sector of retail foodservice for the past 17 years.  Digital natives specifically Gen Z and Millennials can’t seem to put their phones down.  Ordering food on line is as natural to them as staying home for school. 

It should of no surprise that today half of all married parents are using restaurant loyalty programs to gain more value out of their food orders according to Paytronix Systems. The ability to mix and match meal components for delivery or pick up is so natural and common place most retailers don’t know what part of the meal they are not providing according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

 Once again Paytronix Systems published a new study, “Delivering on Restaurant Rewards,” which finds that the digital food ordering shift is strongest among households with children. The latest Delivering on Restaurant Rewards report, produced with PYMNTS.com, explores the ways that restaurant loyalty programs can better engage with families. 

Regular readers can download the full report: Delivering on Restaurant Rewards: Families and Online Ordering

 So, here is some of what they found: “Household food order spending varied by the type of families that placed food orders, however. Married couples with children spent more on food orders than any other type of household in 2020, having placed an average of 96 QSR orders and 86 sit-down restaurant orders using a variety of digital channels and spending an annual total of $7,792 online. Married couples without children spent less on online food orders in the last year than any other household type, spending just $2,204. Single consumers spent an average of $3,122 on online food orders in the year since shutdowns began, by comparison according to Michelle Tempesta, head of marketing for Paytronix Systems, Inc. Here is more:

 ·         Online Ordering– While 25% of couples with children say they are ordering more food online and less on-site since the pandemic's onset, only 12 percent of married couples without children and 18 percent of singles say the same. 

·         Loyalty Programs– The research shows that 39 percent of married parents and 40 percent of single parents say that loyalty and rewards programs would encourage them to spend more on their food orders. 

·         Online Payment-- Forty-four percent of married parents would spend more on food orders if they could pay online. Thirty-seven percent of single parents would spend more on food orders if they could place them via app. 

Tempesta continued, “Parents have a lot on their plate, especially during the pandemic. Many are now working from home and have their kids right beside them all day, so it’s no surprise that they are looking for ways to make their lives easier,” said. “As restaurants create a cohesive physical and digital experience, it will be important to understand what levers truly drive purchasing behavior.”  

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869