Amazon Fresh Is Looking A Customer Ahead

 

Sometimes in business when a company has its pulse on relevant consumer touchpoints hands on experience and intellect combine to create a sustainable retail food store according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Even grocery store research legend Bill Bishop, Brick Meets Click co-founder and chief architect stated Amazon Fresh is ‘built to outlast’ other grocery retailers.  Regular readers of this blog know that consumers are dynamic not static.  That said, consumers don’t want different they want familiar but with a twist.  That is a key distinction that the team at Amazon understands and has incorporated within Amazon Fresh.  

Amazon Fresh looks like a conventional grocery store, however it is edified with the attributes that consumers have indicated they want.  They want item / product selection choice but not overload. The don’t want a choice of ketchup, not a never-ending selection of ketchup. That never-ending selection simply drives the consumer into choice overload.  The pardox of choice takes up too much time, in the mind of the consumer, and the consumers does not like how long they are in the store now. Amazon knows that, offers choice but not choice overload.  

With a smaller footprint, and ending the choice over load. Bishop continued saying “These Amazon Fresh stores should be able to maintain profitability as margins compress and sales volumes fall, which is a key to survival,” Amazon Fresh stores were built too evolve not stay the same.  They will evolve with new products, new faster checkout technology, AI replenishing, customer relevant co-branded messaging according to Johnson.

 Amazon Fresh has integrated grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared foods its meat, seafood and deli departments all offer fresh prepared items.  Yes, there is also grab-and-go pizza. Bishop believes that the undercurrent of success will be technology stating “Amazon Fresh is a digitally integrated grocery store, merchandised for today’s customers, that provides a seamless shopping experience. Its low break-even sales volume means that it can operate profitably in intensely competitive markets.”

Amazon Fresh is positioned to compete even with ‘hard discounters according to Johnson. The messaging is of “consistently low prices,” and those paying with the Amazon Prime Rewards Visa Signature Card or Amazon Prime Store Card get 5% back. Once again, an integrated brand message, that reinforces value.

Amazon ability to leverage AI technology to drive discovery / “surprise and delight” with its product assortment also will enable Amazon Fresh to challenge legacy grocery stores that look more like yesterday and take more time to get in and out of than consumers want to spend.

Integrating consumer interactive participatory items, the ilk of the ‘The Dash Cart’ which saves time checking out, helps you find an item on your shopping list and also provides navigation guidance. The Dash Cart ties Amazon Go and Amazon Fresh with just walk out technology, it empowers customers to shop, and when they are done shopping, leave the store without having to stop to pay.

Bishop reiterated so I want to as well, “The store’s unit economics allow Amazon to operate profitably even in extremely competitive environments,” … “As competition increases (as it inevitably will) and margins are pushed down, many competitive stores will no longer be economically viable and eventually need to close,”. “This is where the low break-even of Amazon Fresh will make a big difference.”

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.

Is the Starbucks & Alibaba Partnership a Global F&B Play

Success does leave clues and when Starbucks Coffee Company and Alibaba Group Holding Ltd. announced a deep, strategic “New Retail” partnership the team at Foodservice Solutions® took notice.  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated that this partnership may be the most significant foodservice /technology partnership of 2018.

Johnson noted that both Starbucks and Alibaba are continually looking a customer ahead and that this partnership as it evolves will be the platform for growth that each of these companies is looking for it will become the new electricity that enables a seamless Starbucks Experience and transform the coffee industry in China.

This partnerships is more than delivery according to Johnson.  It is a relationship that will help Starbucks deliver coffee in China but most important it is a relationship about reciprocal technology sharing.  Alibaba Group plans to grow sales in the ‘West’ and Starbuck’s proprietary software might just the be tool to speed up that expansion according to Johnson.

Daniel Zhang, Chief Executive Officer of the Alibaba Group, believes that this partnership is again a testament to the success of our New Retail strategy. So is your company looking a customer ahead?

What is the new electricity that is driving your top line sales and bottom line profits?  Are your customer counts growing?  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.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, urban clothing, grocerant consultants, coins /currency, autonomous delivery, cashier-less retail, cash-less payments, digital hand held marketing. This program has all of that.

Foodservice 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.  That will require brands to embrace new fresh food partnerships more now than ever before according to Johnson.

Are you trapped doing what you have always done and doing it the same way?  Where is your new electricity?  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.

Grocerant Niche Private Label Brand Managers are Needed

Ready-2-Eat and Heat-N-Eat fresh prepared food aka grocerant niche retail food offerings are driving top line growth in every sector of retail food service in 2018. According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® grocerant niche products are increasing top line revenue, customer continuity, bottom-line profits for both retailer and manufactures.

Customer continuity means maintaining a level of excitement in your menu or food products that drive contemporized relevance for your customer in order to maintain or increase frequency levels for branded retailers.

Creating or identifying distinctive differentiated food consumable’s as an entity with identity by day part is an area brands must focus.  Understanding the unique balance between palate, price, pleasure and the consumer’s drive for qualitative distinctive differentiated new food consumables creates a platform for ongoing success. It is at that intersection brand managers are needed. 

The food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist.  In industry speak, differentiated does not mean different to the consumer it means familiar.  With or help many private label brand managers have been contributing by expanding quality offerings while displacing legacy national brands.  Are you edifying your menu or product offerings?

Outside eyes can bring new light and assist in your pace of growth, redevelopment, and deployment of your new menu’s sku’s with appropriate COG’s. The Foodservice Solutions® team is very good at assisting companies, teams, and individuals exceed their goals. The grocerant niche is in need of private label brand managers too assist in building long term brand value for both individual products and brands. Should we be talking with you?

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 www.FoodserviceSolutions.us 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.

When will ‘Virtual Food Halls’ Work

Here we go again another company wants to reduce cost, low meal prices, while creating a brand without having a physical store front.  The simple fast is it will happen according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

Regular readers of this blog know our Grocerant Guru® has documented many of the virtual restaurants, caterers, and non-traditional food operators trying this formula few has survived so far in fact most have simply faded away. 

Now meal-preparation company Alacarte has secured $700,000 in angel financing to form a partnership with UberEats to offer what it said will be a “virtual food hall” experience. The Miami-based company, which opened its first commissary in Miami Beach four months ago, prepares food based on the specs of local restaurants that it’s partnered with, along with concepts developed by Alacarte, allowing customers to order from multiple virtual concepts and delivering it all at the same time.

“So if the wife wants sushi, the husband wants Mexican and the kids want pizza, they can all order it from us and have it delivered at the same time,” said CEO and co-founder Ken Ray. Ray said that this latest round of funding came from family and friends, but he recently visited venture capital firms in Boston and New York to raise additional funds for further expansion in high-density markets.

Alacarte has developed five concepts in its commissary: Bobby Ray’s Famous Fried Chicken, Fresco Mexicano, Miami Poke Co., Mott St. Pizza, and Pollerio (offering Latin-accented roasted chicken with sides such as beans, rice, fries and coleslaw).

It has partnered with local concepts Taekaway, which is Chinese, Maki San Sushi, Rosewood Pizza, Whichchicken Rotisserie, Bottle Box (offering beer, wine and sake) and a Chinese noodle restaurant called Chin Tu Fat.

Customers can currently order from Alacarte via other delivery platforms such as Postmates, GrubHub and Amazon Prime, but their software doesn’t allow customers to order from Alacarte’s multiple virtual restaurants. The funding will help Alacarte work with UberEats to develop software that will allow the “virtual food hall” experience.

Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us 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.

By-Pass the Grocer AmazonFresh Meal-Kit-Building gets Personal

Today grocerant niche retail success is about serving every customer, one at a time empowering customization, personalization, and individualization as regular readers of this blog know.  Steven Johnson our Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been pounding that into our heads since this blog began back in 2009.  Combine that with saving consumers time and AmazonFresh is once again doing all of the right things according to Johnson.

When we heard that Meal kit service eMeals has added AmazonFresh to its list of grocery delivery and pickup service partners we knew that was important as the ability for AmazonFresh to edify its relationship with the consumers is a top priority.

The eMeals service previously was available only via delivery through Instacart or pickup through Kroger ClickList and Walmart Grocery.  Now eMeals allows shoppers to send a shopping list, which is automatically generated for all meals selected each week, to AmazonFresh with a single click. They may then schedule home delivery or curbside pickup.

Here is why it’s right up AmazonFresh ally eMeals can enjoy up to 50 percent savings in per-serving food costs compared to conventional meal kit providers due to ingredients being provided in standard grocery packaging rather than each in its own portioned package. Moreover, the only other cost involved is a $5 monthly subscription fee for new weekly menus.

eMeals CEO Forrest Collier  stated "Meal kits and online grocery programs are reshaping the grocery market, and we are the first company to combine those two trends,"…. "Adding AmazonFresh to our fulfillment lineup expands our reach to most of the top players in online grocery and advances our mission of giving customers more choice, flexibility and affordability than any other meal kit service."

Subscribers may choose from 15 eating styles ranging from Quick & Healthy to Paleo, Clean Eating, Low Calorie, Classic Meals and even Diabetic, Gluten Free and Vegetarian, and can personalize each week's menus by selecting meals from any of the food styles or substituting favorites from previous weeks. More than 100 weekly recipes are available in the 15 styles.

Once a week’s meals are chosen, eMeals automatically populates a shopping list and allows subscribers to add or subtract items, eliminating separate shopping trips for items such as cereal and toilet paper. Shoppers may either do their own shopping or relay on grocery partners to fulfill orders.

The new option extends eMeals’ strategy of leveraging the existing grocery supply chain to fill meal kit orders rather than building an expensive new infrastructure to portion, package and deliver the week’s recipe ingredients, providing more variety, flexibility and affordability while lowering operational costs.

Are you trapped doing what you have always done and doing it the same way?  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.