Amazon Grocery adds Customer Focused Recyclable Packaging

 

Hot food hot, cold food cold that is the old adage that has been a mainstay within the foodservice sector for over a hundred years, and maybe longer.  It is great to see how one company elevates that standard with customer focused relevance today.

That company is Amazon.  It is taking a major step in making all of that pickup and delivery better for the planet and better for the customer as they edify their food delivery standards according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Amazon Grocery is launching new curbside recyclable packaging that keeps grocery items chilled and frozen during delivery. The program rolled out just in time for Thanksgiving when customers were ordering turkey, green beans, or frosty pints of ice cream, chilled and frozen foods from Amazon Fresh and Whole Foods Market will arrive insulated in packaging made from recycled paper, permanently eliminating the need for plastic liners and bubble bag insulation. The new packaging is also easier for customers to recycle at home.

So, according to the company, moving to all curbside-recyclable insulation packaging reduces material waste, and each year replaces approximately 735,000 pounds of plastic film, 3.15 million pounds of natural cotton fiber, and 15 million pounds of non-recyclable mixed plastic. This new packaging is the latest step in Amazon’s commitment to The Climate Pledge, a bold commitment to be net-zero carbon across its business by 2040, and to building a more sustainable business.

Stephenie Landry, Vice President, Amazon Grocery, detailed the company's latest journey to recyclable packaging journey in a new blog post:

How would you describe the problem we were trying to solve for customers?

We have long wanted to find a more sustainable solution for the plastic liners and bubble bags that are often used to insulate chilled and frozen items. The criteria for any new packaging solution came down to five key considerations. First, and probably the most obvious, we wanted to ensure the packaging- maintained product chill chain and Amazon’s high bar for food safety.

Second, the packaging needed to be small, compact, and flexible for our delivery drivers. Think of it as fitting multiple grocery bags into the trunk of a Prius, so switching to stiff cardboard boxes for insulation wouldn’t work. Although they’d maintain food-safe temperatures, boxes would take up more room, which would mean fewer grocery deliveries per vehicle, ultimately resulting in more vehicles—and carbon emissions.

The third major consideration was that any new packaging needed to be easily recyclable—as in, customers could leave it with the rest of their curbside recyclable material. Fourth, it also needed to be inexpensive and scalable because we wanted to continue to ensure that Amazon’s grocery delivery offerings were widely accessible for customers.

And finally, we wanted to generate less overall packaging for customers. We are continually inventing new packaging solutions, and sometimes the simplest action is to use less of it, especially when Mother Nature provides her own “chill chain” in colder months.

In October, Amazon forecast modest sales growth for the fourth quarter. The bleak holiday season outlook came as Amazon reported sales for its third quarter increased 15% to $110.8 billion, within the company’s forecast range of $106 billion to $112 billion shared at the end of the second quarter. That’s impressive growth, but profits were a different story: Net income fell to $3.2 billion and earnings per share fell to $6.12 from net income during the prior-year third quarter of $6.3 billion and earnings per share of $12.37.

Expenses rose in key areas, which CEO Andy Jassy positioned as the company doing right by customers rather than maximizing near-term profits. For example, fulfillment expenses increased 27.8% to $18.5 billion, technology and content expenses increased 31% to $14.4 billion, and marketing expenses increased 47.4% to $8 billion. Customers appreciated Amazon’s commitment, which is part of what drove the 39% growth in AWS revenue, according to Jassy.

“It’s also driven extraordinary investments across our businesses to satisfy customer needs. Just one example is that we’ve nearly doubled the size of our fulfillment network since the pandemic began,” Jassy said. “In the fourth quarter, we expect to incur several billion dollars of additional costs in our consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs, all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season.

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. 

Home Chef Personalization and Customization Will Drive Adoption

Partnerships that edify a brand with its customers make a difference.  In the competitive meal kit space, it is nice to see that Home Chef is getting back to its roots, within the grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared space adding options that are customer focused with customization and personalization according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Home chef has evolved from just a meal kit company to a meal solution provider.  It is a small distinction, that expands the brand back to its original ‘space’ grocerant niche solutions with a much broader array of options with it comes to points of differentiation all adding relevance to a much broader customer base according to Johnson.

At Home Chef sharing meals for the holiday season goes beyond gathering around a table. The company, is introducing a new digital gifting program that allows shoppers to share meals with others through personalized e-gift cards and physical gift cards.

This new partnership will drive new electricity within the brand, as the digital offering, integrated with Synchrony’s GiftNow platform, gives consumers the opportunity to customize cards with video messages, photos and personal notes.

Yet there is more, E-cards can be sent to individuals or groups by email or text, delivered instantly or scheduled up to three months in advance. People also can use the digital service to have physical gift cards mailed to recipients. All cards are available in a range of seasonal and evergreen designs.

Eric Dean, senior director of marketing partnerships for Chicago-based Home Chef, stated, "We're excited to elevate our digital gifting operations and offer customers more opportunities to personalize and send gift cards," …. "By partnering with GiftNow, we have transformed the gifting experience at homechef.com, making it more experiential, customizable and accessible for both gifters and recipients."

Pari Raccah, general manager with GiftNow, said that the gift cards were created to provide consumers with a more seamless and personalized option. "The gift of food is always one that people cherish as the kitchen remains the heart of the home, and Home Chef's meal kit delivery service is an ideal gift," she remarked. How is your brand driving new electricity?

According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”  That said, what are you waiting for?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban 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. 

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869 

At Domino's Sharing is Caring

 

In a battle for share of stomach leaderships matters. Regular readers of this blog know that a high tide lifts all boats.  Well, in the battle for share of stomach Domino’s knows its customers eat more than just pizza.  They also know that the halo of ‘better-4-you’ extend beyond its four walls.

Focusing on its customers first, select Domino's stores throughout Boston, Phoenix, Louisville, Denver, and Laredo, Texas, bought thousands of $50 gift cards from local restaurants and surprised randomly selected Domino's delivery customers with them in early November. That my friends is how an industry leader shows it leadership, customer knowledge, and edifies it standing within the retail foodservice sector according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Our readers know that Domino's is the largest pizza company in the world.  Most of them know it is actually made up of stores owned by hundreds of independent franchise owners, with more than 95 percent of them started out as Domino's delivery drivers or pizza makers.

Those franchisees know how hard it is to run a business, and they see the impact that substantial fees from delivery app services have on small restaurants. In recent weeks four Domino's franchisees and one corporate-owned store have helped some beloved local establishments impacted by delivery fees.

Select Domino's stores throughout Boston, Phoenix, Louisville, Denver, and Laredo, Texas, bought thousands of $50 gift cards from local restaurants and surprised randomly selected Domino's delivery customers with them in early November. 

In a Battle for Share of Stomach

are you winning?

So, participating Domino's stores across the Greater Boston, Phoenix, Louisville, Laredo and Denver areas bought thousands of $50 gift cards from local restaurants, randomly gave them out to Domino's delivery customers, and encouraged them to use the gift cards by ordering directly from the local restaurants so they could avoid delivery app fees. These local Domino's stores gave away more than $100,000 worth of gift cards from locally owned grills, taco places, barbeque joints, bakeries, delis and more, to roughly 2,600 customers throughout early November.

Russell Weiner, chief operating officer of Domino's, stated, "Running a restaurant is tough. Our franchisees benefit from being part of a brand that has operations and technology built for delivery," … "However, many small restaurants don't have a system for delivery. Meanwhile, third-party delivery apps are charging local eateries high fees to deliver, which are taking away much of their earnings. Domino's and its franchisees were inspired to pay it forward in these communities by helping drive business to a few neighboring restaurants – without the substantial fees."

Irene Li, owner of Mei Mei in Boston, Massachusetts, stated, "We love that Domino's has supported other restaurants and driven their customers to these mom and pops that could really use the help,"

Domino's is committed to supporting the local restaurants and people that make our communities vibrant. If you're not getting Domino's, skip the delivery apps and order directly from a local restaurant. That my friends is sharing and caring during this Holiday Season that is good for all.

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

Circle K Frictionless Checkout Technology is Customer Focused

 

The price, value, service equilibrium within the grocerant niche Ready-2-Eat and Heat-N-Eat fresh food space seems to be constantly moving forward according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Johnson stated, constraints on consumer time continue to increase and waiting in line a grocery stores, convenience store, or restaurant is not on the top of the list of things that have to do or want to do.”

Circle K understand the power of choice each consumer has and in a effort to empower consumer to chose Circle K over another food retailer they are retrofit of existing systems with Grabango’s checkout-free shopping suited for existing locations, so that it supports Couche-Tard's efforts to make the store experience as seamless and frictionless as possible.

Now Circle K is offering Grabango’s “checkout-free” solution across six stores in the greater Tucson, Ariz., area. Couche-Tard Head of Global Digital Innovation Magnus Tägtström explained that his company is passionate about exploring technology that empowers store teams and helps make customers’ lives a little easier every day.

“We’re looking forward to seeing Grabango’s autonomous checkout solution support our ongoing efforts to make the store experience as seamless and frictionless as possible for our on-the-go customers,” he said.

Do you want to take a look at how it works? If yes you can visit the six Circle K locations where shoppers can checkout with Grabango and easily skip the line are located at 15935 N. Oracle Road in Tucson; and in Marana at 11403 W. Tangerine Road, 3880 W. Tangerine Road, 5725 W. Ina Road, 4540 W. Ina Road, and 5633 W. Cortaro Road. We ask do you think service is faster than a drive-thru?

So, Grabango is expanding rapidly and has already deployed more than 75,000 square feet of shopping floor. Last year, Grabango was the first company to retrofit its checkout-free technology into an already operating store and has raised $73 million in total capital to date. With the expansion of coverage to five Giant Eagle GetGo stores in the Greater Pittsburgh area along with these Circle K stores in the West, Grabango’s checkout-free technology now reaches shoppers coast to coast.

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

Black Friday and Cyber Monday Deals at Scooter's Coffee

 

Regular readers of this blog know that you don’t have to be the largest restaurant chain in the world to know just what customers want.  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® regularly post just how successful a lock chain can be by giving consumer just what they want.

 It’s mid-November and that means just one thing to shoppers let the shopping and fun begin and let it begin on ‘Black Friday and Cyber Monday’. Customer will be out and about on both Black Friday and Cyber Monday and they will be full of holiday spirt and looking for deals according to Johnson, who stated so give them one! So, if you are up early shopping try Scooter’s Coffee for your first treat of the day!

So, Holiday happiness begins with Scooter’s Coffee, a one-stop-shop for the coffee lovers on your shopping list. Scooter’s Coffee has gifts to warm hearts and dazzle taste buds, from festive tumblers, curated holiday gift sets featuring brand new bagged coffee flavors, coffee subscriptions and stocking stuffers. Plus, when you shop online at the Scooter’s Coffee Holiday Shop on Black Friday and Cyber Monday, you’ll score deals on your holiday purchases.

Scooter’s Coffee is offering three exciting deals to make this holiday shopping season simply amazing.

·         Black Friday Deal: Shop early at the Scooter’s Coffee Holiday Shop online from Nov. 26-28 and receive $10 off any order of $50 or more with the promo code FRIDAY10.

·         Buy More, Earn More: At participating in-store locations, customers will receive a bonus $5 Gift Card for every $25 Scooter’s Coffee Gift Card purchased, Nov. 26 through Dec. 28. Gift cards make perfect stocking stuffers!

·         Cyber Monday Savings: On Cyber Monday, Nov. 29, online shoppers will receive an extra 15% off sitewide with promo code: CYBER15.

Regular loyal and new customers can shop festive favorites online at the Scooter’s Coffee Holiday Shop to make those on their list smile.

·         Joyful Hearts Holiday Tumblers: On-the-go coffee lovers will enjoy our
20-ounce Joyful Hearts Holiday Tumblers in red or teal. The steel tumblers are vacuum-insulated to keep beverages hot or cold and feature
love-infused designs of songbirds and sweetness.

·         Coffee Subscription: Give the gift of Scooter’s Coffee at home with a personalized weekly or monthly subscription of their favorite flavor. This is the perfect time to introduce coffee enthusiasts to Scooter’s Coffee’s brand new, best-in-class bagged coffee flavors: Caramelicious Ground, Signature Blend, French Vanilla and Breakfast Blend.

·         Holiday Gift Sets: Spread some joy with a specially curated mix of Scooter’s Coffee’s signature roasts and new bagged coffees in four beloved gift sets – Savor the Flavors, Classic Coffee Lovers, Joyfully Yours and Gather Together. Nothing better than a fresh full-flavored coffee deal on black Friday!

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

Farms Stores' Drive-Thru Convenience Three Ways

 

Retail foodservice is littered with ‘look’ a like concepts from fast food restaurants, grocery stores, and convenience stores.  However, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® there is one retailer that seems to be doing three of the most customer relevant things right today.  That company is Farm Stores.

Dinner, lunch, snacking, or breakfast consumers want fresh food fast and at Farm Stores they have integrated consumers concerns into their concerns and they seem to be winning according to Johnson.  

Here are the three things Johnson thinks Farm Stores are doing very well:

1.       Customers can place orders at either the drive-thru,

2.       At walk-up windows,

3.       Orders can also be placed in advance using the Farm Stores mobile app.

 

You have to like this, Farm Stores bills itself as "the drive-thru version of the '10 Items or Less' checkout lane of your supermarket, plus the drive-thru version of your favorite coffee shop or convenience store."

Here is why they are doing what they are so good at:

 

1.       Recent Grocerant ScoreCards found 82.3% of consumers don’t know what’s for dinner at Noon, and 61.1 don’t know what’ s for dinner at 4PM %.

2.       83.1% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 68.4% have two meal components.

3.       When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 90.4 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 82.7% chose meal components.

4.       Seventy-three percent of retail prepared food purchases are taken to go

5.       Prepared food purchases are frequently a planned purchase among 59% of shoppers, while 41% of shoppers said they buy prepared foods on impulse. Dinner has the highest amount of prepared food buys with 79% of respondents making purchases for that meal, while lunch comes in at 77% and breakfast at 62%.

6.       55% of consumers would like to try autonomous EV delivery

Candy Clay, a general manager at Farm Stores, stated, "A lot of times you're getting off work you forgot something at the grocery store and don't want to go all the way back in the grocery, so you can drive-thru and get it,"  "Or, you have five kids and don't want to drag them all in to get eggs and milk, you got us."

Andrew Taylor, Farm Stores director of operations, stated, upon the opening of a new store in Toms River, NJ. "We think we have a product and a solution for the everyday consumer that benefits their daily lifestyle."  The team at Foodservice Solutions® thinks so too!

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869