Saturday, April 27, 2024

Grocerant Guru’s Suggest that Consumers Going Grocery Shopping Beware

 


Today while inflation is top-of-mind for most consumers when they go grocery shopping.  It’s at the intersection of product price and packaging that Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes consumers should be reminded of the phrase Caveat Emptor.  

In short, caveat emptor is a Latin phrase that translates to "let the buyer beware." In the context of grocery shopping, it means that the buyer has the responsibility to inspect and research a product before purchasing it, as the seller may not be held liable for any issues with the product later.

It's essentially the opposite of "buyer beware" – the onus is on the customer to be informed.

Caveat emptor is a principle that's less common today than it used to be, especially with regards to consumer goods. Many countries and regions have laws in place that offer consumer protections and hold sellers more accountable for the quality and condition of their products.


Many consumers today are going to the grocery stores finding higher prices and smaller packaging. This practice of keeping prices the same but reducing the amount of product in the package is called "shrinkflation." Here are some ways consumers can be aware of shrinkflation:

·         Pay attention to unit pricing: Most grocery stores will show a price per unit (ounce, gram, etc.) on the shelf tag in smaller print below the headline price. This allows you to compare products directly and see which offers the most for your money.

·         Track package sizes of your favorite items: Become familiar with the weight or volume of the products you typically buy. If you notice a decrease in size but the price stays the same, you're likely a victim of shrinkflation.

·         Compare brands and sizes: Don't just grab your usual item on autopilot. Take a moment to compare different brands and sizes to see which offers the best value per unit.

·         Stay informed: There are resources online and even social media communities dedicated to tracking shrinkflation. A quick search for "shrinkflation" can turn up news articles and forums where consumers share their experiences.


By being aware of shrinkflation and using these tips, you can be a more informed shopper and get the most for your grocery budget. France had some new laws to help keep consumers aware of shrinking packaging size and equal or greater pricing of products.

Here are five reasons why the US might consider adopting regulations similar to France's on shrinking packaging (shrinkflation):



1.       Increased Transparency for Consumers: Just like the French law, US regulations could require clear labeling on products that have undergone size reduction without a price drop. This would allow consumers to make informed decisions about their purchases, comparing price per unit instead of just the headline price.

2.       Combatting Deceptive Practices: Shrinkflation can be seen as a deceptive practice, since the packaging size suggests a similar quantity of product. Regulations could help ensure that consumers aren't misled about how much they're getting for their money.

3.       Curbing Inflation's Hidden Costs: While companies may resort to shrinkflation to avoid raising prices explicitly, it still contributes to inflation by reducing the value consumers receive. Regulations could help mitigate this hidden aspect of inflation.

4.       Encouraging Fair Pricing: With clear information about size reduction, competition could be fairer. If consumers become more aware of shrinkflation, companies might be less likely to resort to it as a hidden price increase, potentially leading to more accurate pricing practices.

5.       Potential for Broader Action: The French example focuses on shrinkflation, but the article also mentions "cheapflation" (reducing quality without lowering price). US regulations could potentially address both issues, promoting transparency and fairer pricing practices.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.



Friday, April 26, 2024

Grocerant Guru’s Full-Flavored Forecast: 2024's Flavorful Trends

 


Get ready to tantalize your taste buds with a peek at what's hot in the culinary world! Once again Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® and his team,  are seeing some new signals of our ever-evolving consumer focused adoption of fresh food with functionality; including botanical infusions, and even a touch of technology in the kitchen. But alongside these established trends, a surprising contender is shaking things up: the fig leaf.

1. Functional Beverages: Beyond Hydration

Ditch the sugary sodas! Consumers are seeking beverages that go the extra mile, offering health benefits and specific nutrients. Look for a rise in adaptogenic teas boasting stress-reducing properties, or vitamin-infused waters that give you a healthy on-the-go boost.

2. Botanical Bounty: Nature's Infusion

Botanicals are taking center stage! Herbs, flowers, and other plant-based ingredients are finding their way into everything from cocktails to cheese. These botanical elements not only add unique flavor profiles but also boast potential health benefits. Keep an eye out for floral syrups in your drinks and creatively infused cheeses on your charcuterie board.


3. Food for the Soul: Emotional Well-Being on a Plate

Mental health awareness is on the rise, and it's influencing our food choices. Look for an increase in ingredients marketed for their mood-enhancing effects. Dark chocolate, nuts, and certain fruits are taking center stage as consumers seek to nourish their minds as well as their bodies.

4. Demystifying the Label: Transparency on the Menu

Savvy shoppers are demanding clear information. Food labels are being scrutinized more than ever, with consumers looking for transparency about allergens, organic certifications, and sustainable sourcing. Brands that prioritize clear and accurate labeling will win over health-conscious foodies.

5. AI in the Kitchen: The Future of Food

Technology is transforming the way we cook. From personalized recipe recommendations by smart appliances to voice-activated grocery ordering, AI is making its way into our kitchens. Be prepared for innovative solutions that streamline your culinary experience.

An Evolving Menu

Equals Customer Relevance


Building a Larger

Share of Stomach

Bonus Trend: The Fig Leaf's Figment of Flavor

While not yet mainstream, fig leaves are causing a stir amongst creative chefs. Their unique flavor profile is being used in surprising ways, from infused oils and dairy products to innovative cocktails. While it may not be a household ingredient yet, keep an eye out for fig leaf's potential to add a touch of intrigue to your menu!

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



Thursday, April 25, 2024

Handheld Happiness: The Battle for the Burger Bite

 


According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, handheld food for immediate consumption is driving consumer migration when eating out.   Foodservice Solutions® recently conducted grocerant scorecards reveled that 81.6 percent of consumers prefer entrees that can be consumed by hand when not eating at home. 

That said it is a key driver in the fact that the world of burgers is heating up, and the battle lines are drawn between fast food chains and casual dining restaurants. Both are vying for your burger buck, but how do you know which offers the best value?


The Fast-Food Value Play

For those seeking speed and affordability, fast food chains like Wendy's and Burger King are tough to beat. Their value menus and combo meals offer a complete burger experience at a lower price point. Wendy's Double Cheeseburger, for instance, boasts a lower calorie count and a more customizable option compared to TGI Friday's classic cheeseburger, all at a fraction of the price. Similarly, Burger King's Whopper combos undercut Red Robin's gourmet burgers in terms of price, although you sacrifice some variety and a sit-down experience.

The Casual Dining Experience

Casual dining restaurants like Red Robin and Applebee's offer a counterpoint to the fast-food experience. They provide a sit-down atmosphere with table service, often including bottomless fries or drinks in their meal deals. Red Robin's gourmet burger selection caters to those seeking unique flavors and larger portions, while Applebee's offers a wider variety of burgers with different toppings and sauces. However, this enhanced experience comes at a premium price.


The Fight for the Middle Ground

To lure customers away from fast food, casual dining establishments are adopting various strategies. They're introducing value-priced menus and promotions to compete on affordability. Additionally, they're revamping menus with new and exciting items to cater to evolving taste buds. They're also investing in online ordering and delivery to provide a fast and convenient option for takeout and delivery customers. Finally, they're attempting to create a unique ambiance that blends the comfort of a sit-down restaurant with the speed of fast food.

The Verdict: It Depends

The truth is, the "best value" burger depends on your priorities. If you crave a quick and affordable bite, fast food chains reign supreme. But if you desire a wider flavor variety, a hefty burger, and a restaurant experience, you might be willing to pay extra for a casual dining option. Ultimately, the battle for the burger bite is all about understanding what your taste buds and wallet truly crave.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.



Wednesday, April 24, 2024

The Grocerant Guru: Why Foxtrot and Dom's Couldn't Outfox the Market

 


Urban darlings Foxtrot and Dom's, known for their unique grocery-restaurant hybrid concept, recently shuttered their doors. This surprise move comes just months after their merger into Outfox Hospitality. As the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® let's dissect six reasons why this innovative concept may not have survived the test of time.

Firstly, finances might have been the main course of trouble. Despite hefty investments, competition and operational costs likely squeezed their margins. The grocery-restaurant battlefield is crowded, with established players offering similar convenience. Remember that differentiation in the minds-eye of the consumer does not mean different.  It means familiar but with a consumer-focused twist with current relevance.


Secondly, the market was already well-fed. Competing with traditional grocers, restaurants, and delivery services in urban areas proved difficult.

Thirdly, pandemic disruptions to supply chains may have left them with a side of empty shelves. Sourcing high-quality ingredients consistently became a challenge.

Fourthly, managing a dual concept might have been a recipe for disaster. Juggling restaurant operations alongside a full grocery section added complexity and potentially strained resources.

Fifthly, evolving consumer tastes might have left them on the menu. The pandemic accelerated trends like online grocery delivery, which they may not have embraced quickly enough.

Finally, merging two distinct brands can be a tricky business. Integrating operations, supply chains, and company cultures might have proven more challenging than anticipated.


While the Foxtrot and Dom's experiment has ended, their story offers valuable lessons for future grocerant ventures. Understanding the competitive landscape, adapting to consumer trends, and streamlining operations will be key ingredients for success in this ever-evolving market.

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 participationdifferentiation 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

Do You Want A

Larger

Share of Stomach?


You Need to Understand

Your Customer 




Tuesday, April 23, 2024

Why California Restaurants Can Rest Easy: The Enduring Appeal of Dining Out

 


The restaurant industry has been obsessing with the rise of the minimum wage in California.  Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® continues to insist that there are many more reasons the long-term outlook for the California restaurant sector is bright. So, here we go.  

In California, approximately 49.3% of households consist of married couples, while 13.5% are single-female households and 6.0% are single-male households. Additionally, 24.0% of households have only one person, and 7.3% fall into the category of other non-family households.  Household size is a huge determining factor in determining ‘frequency of dinning out’ according to Johnson.  

Let’s focus on Millennials most coveted consumer today.  Like any other generation, they exhibit a diverse range of behaviors and preferences. While it’s essential to avoid generalizations, I can highlight some factors that might contribute to the perception that Millennials cook less from scratch at home:

1.       Lifestyle and Time Constraints:

o    Many Millennials lead busy lives, juggling work, social commitments, and personal interests. As a result, they may prioritize convenience over cooking elaborate meals.

o    Long working hours, commutes, and other responsibilities can limit the time available for cooking.

o    The rise of the gig economy and freelance work may lead to irregular schedules, making it challenging to plan and prepare meals consistently.


2.       Convenience Culture:

o    Millennials grew up during the digital age, where convenience is highly valued. They are accustomed to on-demand services, fast food, and meal delivery apps.

o    Pre-packaged meals, takeout, and restaurant dining offer convenience and save time compared to cooking from scratch.

3.       Skill and Confidence Gap:

o    Cooking from scratch requires culinary skills, knowledge of ingredients, and confidence in the kitchen. Not everyone has learned these skills.

o    Some Millennials may lack exposure to home cooking due to busy parents, reliance on processed foods, or limited cooking education.

4.       Cost Considerations:

o    While cooking from scratch can be cost-effective, initial investments (such as kitchen equipment, spices, and pantry staples) might deter Millennials.

o    The perception that eating out is more affordable than buying quality ingredients for home-cooked meals can influence behavior.

5.       Social Trends and Social Media:

o    Social media platforms often showcase visually appealing restaurant dishes and food trends. Millennials may prioritize experiencing these trends over cooking at home.

o    The desire to share food experiences online can drive restaurant visits.



6.       Changing Food Culture:

o    Millennials are part of a generation that witnessed significant shifts in food culture. They value diversity, global flavors, and experimentation.

o    Exploring diverse cuisines through dining out or ordering takeout aligns with this cultural openness.

7.       Environmental Concerns:

o    Some Millennials are environmentally conscious and seek sustainable food choices. However, they may perceive cooking at home as less eco-friendly due to packaging waste and energy consumption.

8.       Health and Nutrition Awareness:

o    Millennials are increasingly health-conscious. While some prioritize nutritious home-cooked meals, others may rely on pre-made options without considering their nutritional value.

Remember that individual preferences and circumstances vary widely. Many Millennials do cook from scratch, emphasizing health, creativity, and community. Encouraging cooking education, promoting accessible recipes, and emphasizing the benefits of home-cooked meals can help bridge any gaps.

 


While takeout and delivery are undeniably popular, California restaurants can take comfort in the fact that consumers, especially millennials, will likely continue to dine out frequently. Here's why:

1. California's Culinary Cachet:

·         California is a melting pot of cultures, reflected in its diverse and innovative restaurant scene. From Michelin-starred establishments to trendy food trucks, there's something for everyone's palate and budget.

·         Californians, known for their health-conscious lifestyles, appreciate the focus on fresh, local ingredients prevalent in many California restaurants.

·         Statistic: According to a California Restaurant Association: https://www.calrest.org/ report, California has over 800,000 restaurant employees, showcasing the industry's significant contribution to the state's economy.


2. The Social Aspect of Dining Out:

·         Restaurants offer an escape from the monotony of home cooking and provide a space for socializing, celebrating, and connecting with friends and family. Deliveries can't replicate the experience of a shared meal and lively conversation.

·         California's vibrant restaurant culture fosters a sense of community, with people gathering around food and conversation.

3. The Evolving Restaurant Experience:

·         Restaurants are constantly adapting to consumer preferences. Many offer online ordering and delivery alongside dine-in options, providing flexibility for customers.

·         Technology like self-ordering kiosks can streamline the dining experience, catering to millennials' comfort with digital tools.

4. The Value Proposition:

·         While grocery shopping can be expensive, restaurants offer a complete dining experience with prepared food, service, and ambiance.

·         Many California restaurants cater to budget-conscious millennials with lunch specials and happy hours.

The Takeaway:

California's unique restaurant scene, combined with the social and cultural aspects of dining out, ensures a continued demand for restaurants despite the rise of delivery services. Consumers will likely continue to embrace the convenience of takeout while cherishing the experience of dining out in California's diverse and exciting restaurants.

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter