Restaurants Hand Held Marketing Missing the Mark

 

At the intersection of technology and consumers wallet you can find hand held digital marketing on smartphones in the hands of consumers.  There is a battle for those dollars and at the moment it looks as if restaurants are capitulating market share among consumers 18 to 2 years old aka Gen Z consumers.

Regular reader of this blog know Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® recommends The NPD Group.  Here is another reason why.

According to The NPD Group, in 2019 Gen Z consumers made 218 annual restaurant visits per person in 12 months through February 2022. That number is 66 visits less than their Gen X counterparts in 2002. 

So, historically, the heaviest restaurant usage stage occurs from the ages 18-24, which is currently where the oldest among Gen Zer’s are situated. Two decades ago, when Gen Xers were young adults, they averaged 284 visits per person a year. Millennials, as young adults, were impacted by the Great Recession, causing a cutback in 40 restaurant visits per person a year versus their older Gen X counterparts.

This is important, lets revise this, Gen Z young adults, whose outside recreation, like restaurant visits, was thwarted by the COVID-19 pandemic, made 218 annual restaurant visits per person in the 12 months through February 2022, 66 visits less than Gen Xers in 2002.

So, where is the money and attention going? The pandemic isn’t the only factor keeping Gen Zers from restaurants; they have more interests vying for their dollars than previous generations. Apparel, footwear, beauty and technology are among the categories on which young adult Gen Zers spend their money. The report points out that many apparel brands have successfully tapped into Gen Z values, like diversity and empowerment and, as a result, have gained a larger share of their spending.

The increased spending on categories like apparel and overall inflationary pressures have heightened Gen Z’s price sensitivity. Half of the Gen Zers surveyed by NPD for the report said that higher menu prices had impacted their restaurant visits. Price is the most important attribute among consumers 18-24 years old when choosing a restaurant. Student loan debt hasn’t factored into Gen Z spending, but it will in the future.

“Restaurant operators and their manufacturer partners must quickly adapt to how Gen Z consumers think and feel,” said David Portalatin, NPD food industry advisor and author of Eating Patterns in America. “An understanding of which menu items to emphasize, the food attributes they seek, menu innovations that appeal to them and their preferred advertising platforms will help you win the favor of this valuable generation.”

Whether in-store or online, Gen Zers are enticed by good deals, according to the 2022 Path to Purchase Institute’s (P2PI) latest research study, "Gen Shopping Habits." In the study 91 percent of respondents identified promotions and sales as impactful, while customer reviews or testimonials, personalized offers, and informative content specific to products were all ranked at 88 percent effective.

Gen Zers are also engaged shoppers. The cohort is drawn to in-store options that are affordable and offer a one-stop shopping experience, referencing Walmart and Target as its favorite destinations for in-store shopping for everyday items. Are you looking a customer ahead?  Just think 66 fewer visits to restaurants.  How many of those missed trips could have been to your restaurant?

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

Peter Piper Pizza Smaller Footprint Faster Service

The cost of hiring new employees continues to rise.  Employee turnover seems as if it is at an all time high and many chain restaurants are reevaluating their business models to find a way to stabilize their workforce, reduce cost, while still delivering on their brands promise. 

Consumers are dynamic not static, business that want to maintain a long-term relationship with consumers must evolve with relevance or they will have fewer year over year customer visits according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Peter Piper Pizza, is moving forward in an attempt to continue to drive growth, while reducing cost, and developing top-line sales and bottom-line profits with a new revised business model according to Johnson.  Focusing on consumer valuable touchpoints Peter Piper Pizza will introduce its new off-premise-only concept in Phoenix with the opening of the first of three Peter Piper Express locations on March 1, at 2322 E. Thomas Road, Suite 103.  

This should come as no surprise to anyone as Peter Piper saw off-premise sales skyrocket in 2021 with strong demand for its scratch-made pizza and menu items. Recently, Peter Piper Pizza reported that off-premise sales now account for more than 40% of sales at its corporate-owned full-service locations, with some locations experiencing even more. The company projects its Express locations will be 15% the size of a traditional Peter Piper restaurant, which leads to lower operational costs. 

Each Peter Piper Express will serve a full menu featuring its pizzas crafted from dough made fresh daily, salads, appetizers, desserts and bottled beverages. The highlight of each location is a full-size kitchen equipped with a custom Roto-Flex pizza oven capable of baking over 200 delicious pizzas per hour.  

CEC Entertainment LLC President and CEO David McKillips, stated, “The strong demand for our scratch-made pizza and quality menu offerings makes the Peter Piper Express concept a great growth vehicle for the brand and a natural complement to our popular full-service offering,” ... “Based on the success of these new units, we believe the concept will be attractive to our current and potential franchisees and will allow further brand penetration in existing and new markets at a substantially lower investment with a very attractive rate of returns.” 

This new Express concept is part of Peter Piper Pizza’s larger initiative to meet changing consumer demands on several fronts. The company recently began updating its arcades with the launch of funpass, which allows guests to purchase and reload cards directly from a kiosk to play new and classic games in Peter Piper’s “Game On” arcade area. The new system eliminates the need for game tokens and paper prize tickets and has increased total arcade play time by 23%. The rollout to all locations is expected to be complete by the end of 2022.  

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 

Are Roller Grill’s Still Necessary

 

The number one article read on the Foodservice Solutions® blog since 2009 continues to be Roll, Roll, Roll, Away Roller Grill, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Johnson, and the team at Foodservice Solutions® admits that they downplayed, the intersection of food preparation simplicity and profitability, and looked more at consumers trends and the growing demand under the ‘halo’ of better for you, food options.

That said, there is no doubt that customer trends continue to favor fresh food, fast and the appetite for a simple heated roller grill meal substitute is waning.  Yet, the team at Foodservice Solutions® thinks it important to share the insight from Isabelle Gustafson has to say about roller gills in C-stores today.

Here is what Gustafson had to say about roller grills today: “As the line between c-stores and quick-serve restaurants (QSRs) becomes increasingly blurred, and consumers become more accustomed to made-to-order foodservice, the roller grill is no longer a given.

As with all c-store segments, operators must ask themselves whether the roller grill is the best fit at their locations. So, what sets the roller grill apart from other foodservice offers, and how do you know if a roller grill is right for your c-store?

Space-Saver

The roller grill can be a great option for any c-store, but it’s especially helpful for c-stores with very limited space. A super-small store may not have room for the type of kitchen necessary for made-to-order foodservice. The roller grill provides these types of stores with a solid foodservice option that takes up minimal space.

We know that today’s consumers love customization, and this is where made-to-order foodservice options really shine. But customization can be challenging for operators, especially for c-stores, given their space constraints.

Self-Serve

The roller grill is especially beneficial for stores with not only limited space, but also limited employees.

Because the roller grill is self-serve, it’s a great way to keep labor costs low while still providing customers with a great grab-and-go foodservice option. While, of course, the roller grill must be properly and frequently cleaned and restocked, it’s relatively low-maintenance compared with other offers.

Granted, the pandemic did pose some unique challenge for the roller grill in particular: Amid shutdowns and heightened concerns over food safety, along with regional regulations, some retailers paused roller grill sales altogether. Meanwhile, others were able to bring the segment behind the counter as a way to meet COVID-19 safety requirements while continuing to serve customers.

Grab-and-Go

While made-to-order foodservice is increasingly popular, there’s a reason the roller grill is a tried and true favorite for c-stores: The roller grill is the ultimate convenience — a quick and easy lunch or snack for customers in a hurry.

Roller grill offers also tend to be less expensive than made-to-order foods while still being some of Americans’ favorites.

In fact, overall sales of hot dogs actually rose about 20% in 2020, and total pounds 7% over 2019, according to the National Hot Dog & Sausage Council. In March, at the start of the pandemic’s spread in the. U.S., sales soared 127% in grocery stores specifically before they began to even out.

Dinner sausage sales experienced a similar increase. Overall in 2020, they were up 24% in sales and 15% in total pounds.

Ultimately, while the roller grill can be a great option for any store, big or small, no matter the location, there are a few key indicators to determine whether or not a roller grill is the right fit. As with most things, the answer will likely depend on your particular store’s needs and constraints as well as your specific clientele.

So, that was what Isabelle Gustafson had to say.  Do you know what we are saying today?  Once again, the trend is your friend. Let it go, the halo of better for you will drive more customer adoption than any thing else.

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