Millennials' Shift from Restaurants to C-store Foodservice: A Modern Perspective

 

The food sector is witnessing a significant shift as Millennials continue their exploration for fresh food options in the grocerant niche. This journey of discovery, trial, and migration is challenging the traditional paradigms of legacy chain restaurants. Steven Johnson, the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, has been at the forefront of this evolution. 

A recent GasBuddy survey revealed that "43 percent of millennials purchase more food from c-stores today than three years ago". In our fast-paced world, where a full-time job can consume almost all waking hours, Millennials are seeking fresh food that is both quick and affordable. They are finding these needs met at C-stores. 

The survey further found that: 

Approximately 56 percent of Americans purchase meals at gas station c-stores at least once a month, with younger consumers doing so more frequently. 

A quarter of those aged 30-44 purchase food five or more times per month. 

20 percent of those aged 18-29 purchase food at c-stores three to four times per month. 

Three-quarters (75 percent) of respondents believe c-store foodservice has improved in the past five years. 

Frank Beard, a convenience store trends analyst at GasBuddy, stated that "Convenience retailers with compelling foodservice programs are a growing threat to quick-service restaurants". People are choosing convenience stores over fast-food locations due to the convenience of an all-in-one stop for fuel and food, and a preference for the taste of the food at c-stores. This trend is further amplified by leading convenience brands like Wawa and QuikTrip rapidly expanding across the country. 

Legacy restaurants have reasons to worry. Along with frequent visits to c-stores to purchase meals comes increased dollar spend. The study found that one in four Americans spend $6 to $10 per week on c-store foodservice, with nearly 20 percent of those aged 18-29 spending $10 to $15 per week. 

The most-preferred meals at both c-stores and quick-service restaurants include sandwiches or wraps; fresh salad; pizza; burgers and fries; and fried chicken. Beard continued, "Convenience brands are well-positioned to cater to consumers' tastes because they aren't pigeon-holed into one type of cuisine". The study found that younger Americans prefer more variety, particularly with newer menu items like burritos and pizzas. 

Speed is a concern, as nearly one third of consumers are only willing to wait five minutes for their meal. When asked what they dislike about fast food establishments, consumers named unhealthy options as their top concern, followed by food quality, restaurant cleanliness, and limited food and drink options. 

In the light of recent trends, Foodservice Solutions® offers its 5P’s of Food Marketing to enhance your retail food brand while creating a platform for consumer convenient meal participation, differentiation, and individualization. For more information, you can reach out to them via email. 

Fast forward to 2024, the landscape of the food industry continues to evolve. Millennials and Gen Z are leading a movement towards healthy eating amidst the current cost-of-living crisis by scaling back on non-essentials, including streaming services. They prioritize spending on healthier food over streaming services during the cost-of-living crisis. This shift in priorities is reflected in the growing popularity of c-store foodservice, which has seen significant innovation and expansion in recent years. As the landscape continues to change, c-stores are increasingly seen as sites where customers can find value for their meal dollars. 

Think about this, the shift of Millennials from restaurants to c-store foodservice is a testament to the changing dynamics of the food sector. As the Grocerant Guru® Steven Johnson suggests, the key to survival in the next generation of retail is embracing both technological advancements and the demand for fresh, accessible food. 

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

Are You Growing

A Larger

Share of Stomach 

Make Your Super Bowl Party Simple Get a Rutter’s Game Bundle

 

Rutter’s excels a quantifying and qualifying additional food retail segment opportunities, new menu product segments, brand and menu marketing integration strategy that edifies its relationship with consumers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Now Rutter's is helping football fans get ready for the Super Bowl by bringing back a popular deal and adding another. Two Big Game Bundles are available at Rutter's convenience store now through March 16.

The bundles are:

·         The Made for You Big Game Bundle — It includes 12 boneless wings, five chicken strips, four hot dogs, an order of extra-large fries, two portions of macaroni salad, two portions of coleslaw and a 2-liter bottle of soda for $29.99.

·         The Made for You Sub Bundle — It features two turkey subs and two ham subs topped with lettuce, tomatoes and American cheese for $19.99.

The Made for You Big Game Bundle is an enhanced version from last year while the Made for You Sub Bundle is new for 2024.

Chad White, Rutter's foodservice category manager, stated, "Whether you're cheering for a football game, basketball game or enjoying a golf tournament, Rutter's Big Game Bundles are the ideal food choice for any event," … White expressed the company's goal to provide customers with an enticing way to share Rutter's food with friends and family.

Headquartered in York, Rutter's is a privately held chain of convenience stores that operates in Pennsylvania, Maryland and West Virginia. Part of a family managed group of companies, the Rutter's companies include not only the c-store chain, but a dairy and beverage company, and a real estate company. 

In 2023, Rutter's reached an 85-store milestone with the opening of a new location in Orwigsburg, Pa., part of a five-year plan that calls for the c-store chain's expansion for the first time into Delaware and Virginia, as well as an investment of $150 million into updates at several existing locations.

With roots dating back to 1747, Rutter's 276-year history makes it the oldest vertically integrated food company in the United States.

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Grocerant Sales Success is All in the Numbers in 2024

If you are a restaurant, bodega, service deli, or convenience store selling grocerant niche Ready-2-Eat or Heat-N-Eat fresh prepared food this year it’s time to remember what got you to where you are today.  The first thing you need to look at is your topline-sales and bottom-line profits according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Johnson reminds us that others the ilk of Ben Johnston is the COO of  Kapitus, had to say:

With ever rising costs for supplies and staffing, there are important measures restaurant owners can take to navigate an uncertain economic climate in 2024. That being said, unemployment remains low across the country and consumer spending is strong despite higher interest rates. We expect this to continue, at least in the near term.

In these uncertain times, we encourage restaurant owners to take the following steps:

Forecasting Financial Needs—Restaurant owners should determine whether they are likely to need capital going into the 2024 and if so, work to line up that capital now. The most common mistakes small business owners make is failing to properly forecast the cashflow needed to secure the inventory and staff required. Small business owners are by nature optimistic, and sometimes optimism causes us to overlook the downside contingencies that can become essential when things don’t go as planned.

Restaurant owners should work to forecast their busy and slow seasons and use these projections to determine whether they are likely to need capital as they transition into their busy season.

Banks have been reducing exposure to small businesses ever since the pandemic, and now with higher interest rates putting pressure on bank deposits and greater regulatory scrutiny, banks are reducing their loan books even more. Fortunately, there are a number of small business lenders who have been expanding their ability to provide small business capital in the face of this bank contraction. Small business owners should consider exploring options with their bank as well as these non-bank lenders.

Consider Offerings to Attract Customers—Restaurants trying to attract price conscious diners should make sure that their menus carry several low-cost, higher margin staples that can be sold at reasonable prices. Consider reducing the size and price of certain staples and then offering a “super-sized” portion for a higher price. Keep a close eye on your margins, and don’t be afraid to slim up menus and reduce hours of operation if demand begins to slip.

Retaining Staff—Flexible shifts and secure shifts may actually be more important than wages to some employees. An effort to maximize staffing levels by cutting shifts short or imposing last minute shifts can be very disrupting to employees’ lives. It may be easier said than done, but allowing employees more input into their shift times and durations can go a long way to creating employee loyalty. We also encourage restaurants to automate as much of their process as possible, keeping headcount light.

Planning for Growth—When considering expansion plans, restaurants should understand the demand in their local market as well as the competitive environment. A restaurant’s success is likely to be driven more by the local economy and by the competition than by national economic indicators. 

Restaurants are expensive to start and can take years to become important fixtures of the community. As a result, it is important to have a good capital plan in place. Most restaurant owners have financial backers to help them get off the ground, and debt financing relationships to help them grow and cover temporary shortfalls of capital. Having the right financial relationships is important, and fortunately there are a number of non-bank lenders who are able to provide financing options to restaurants.

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter 

Is Cash-Back the New Cost of Customer Acquisition

 

What is the price of new customer acquisition and retention? Business models within the restaurant, convenience store, and grocery sector are all evolving.  One of the most successful companies globally is Aldi.  Aldi has a dual focus of fun discovery with low prices.

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® full flavored fresh prepared food and beverages that are portable is an increasingly consistent attention getter for consumers that drive branded meal adoption.  

However strange as it may sound, many restaurants use technology too introduce a new customer and deep digital discounts to entice consumers to keep coming back.  

Circle K recently renewed its partnership with Upside for fuel-related offers at more than 5,200 convenience stores. The two companies will also be expanding their relationship, with Upside introducing cashback opportunities for convenience store merchandise at more than 4,000 Circle K locations across the U.S. 

Matthew Solly, head of global fuels and car wash category management at Circle K, stated, "Circle K is constantly looking for ways to introduce its brand to new customers," ... "Thanks to our collaboration with Upside, we're engaging with consumers whom we might not have otherwise reached."

Regular readers of this blog know that Circle K initially partnered with Upside in 2019 to provide personalized offers to its customers and help increase sales profits at its stores. Upside's convenience store feature also specifically focuses on driving increased pump-to-store conversion, trip frequency and basket size. 

Sam Berkovitz, vice president of account management for fuel and convenience stores at Upside, stated, "The retailers leading the market today know that a variety of digital tools are required to grow consumer wallet share," …. "[Circle K] recognizes that influencing consumer behavior needs to involve digital engagement alongside strong on-site execution, prompting them to adopt innovative strategies to outshine their competition." 

In case you did not know, Upside is a digital marketplace that connects consumers with brick-and-mortar retailers nationwide. Its mobile app and partner apps reach more than 30 million consumers and have helped its retailer partners generate more than $1 billion in incremental profit. The company currently works with more than 100,000 gas stations, c-stores, grocery stores and restaurants in all 50 states and Washington, D.C. 

Do you know the price of new customer acquisition and retention for your retail food outlets?  

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Restaurants Fresh Fast Take-Out Done Right Drives Sales

 

If you want to garner incremental sales for takeout and delivery your meals need to be packaged and labeled professionally for customer relevance, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Consumer have come to expect restaurant to be as professional as grocery store service delis and convenience stores. Transparency in packaging includes labels on takeout meals and meal components according to Johnson.  Today there is the ability for restaurants to offer on-demand labeling elevating your takeout quality in the minds-eye of the consumer.

According to Dan Lydigsen, competitive food retailers, are leveraging digital tools like POS, ERP, and EDI software systems are integral for automation, real-time visibility, and an improved customer experience. However, the technology needed to execute these systems—like labeling and printing tools—are just as necessary when it comes to improving ROI and operational efficiency.

If you have not discovered what to look for when finding a labeling solution, and how the right labeling technology can help your restaurant or food retail outlet gain a competitive edge you will find the information below helpful.

Selecting the right label printing technology for your retail operation

Selecting a label printer that isn’t optimal for the fast-paced nature of a convenience store can create costly obstacles:

·         What if you have a printer that drops Bluetooth^®and Wi-Fi^® connectivity?

·         What if your printers can’t be easily connected to the software you use now or are planning to upgrade to in the future?

·         What if a stand-alone label printer is all you need?

At best, choosing the wrong inventory management solution means added time and frustration for your associates—which must be avoided at all costs when considering worker shortages and high turnover. At worst, it can result in lost sales and affects customer loyalty. For one such convenience store, keeping up with customers meant upgrading to more reliable labeling technology.

A fresh approach: see how a fast-paced convenience store improved its labeling process

Locally known as the “Hinsdeli,” the Shell Food Mart in Hinsdale, Illinois is a highly successful fuel, retail, and food service operation. In addition to traditional food staples, the store offers a milkshake bar, fresh pastries, and a full range of custom-made sandwiches and hot meals – all of which customers have embraced enthusiastically.

However, in a fast-paced, 24-hour operation, keeping products and shelves labeled with the correct price while maintaining the desired merchandising image was proving to be a challenge. To solve for this, the busy store adopted an intuitive system that improved inventory management and empowered all associates with an easy-to-use system.

Getting the label printing process right the first time

Even if your convenience store operation has the top-of-the-line retail POS, ERP or EDI systems, labeling is a crucial aspect of retail. Everything will eventually get a label. To keep inventory moving and associates and customers satisfied, keep the following considerations in mind:

·         Seamless integration. Look for quick-deploy printers that integrate seamlessly with your existing convenience store software and can connect easily with any mobile device your associate might already be using.

·         Rugged dependability. Mobile and stationary printers must be able to quickly and easily print barcode packaging, shipping, shelf, rack and other identifying label. And, they need to withstand continual use by multiple associates in busy store and warehouse environments.

·         Easy to learn. Look for retail printing solutions that are intuitive, so you can avoid a major training investment for associates and onboard new associates with ease.

·         Extended support. Make sure your label printing technology comes with premier two-year warranties.

·         Make sure your printing solution can scale to meet your evolving food service needs.

If your competitive strategy is evolving to include new fresh and prepared foods, faster and more fluid price changes and markdowns, or even expanding your warehouse – you need the right printers and labelers that help your associates work productively, compete effectively and meet changing demands.  To help meet these needs, Brother offers a number of seamless options that work with convenience store systems or can stand alone.

·         The RuggedJet mobile label printer series is engineered to help your associates label on the fly, virtually anywhere – with effortless connectivity, all day battery power, speed and rugged performance that stands up to your environment.

·         QuickDeploy Labeling Kits are a quick, easy, affordable way to create customized labels on demand. With these tools, associates can quickly print shelf-edge tags, markdown labels, fresh food labels and receipts for items – in the aisle or virtually anywhere across the store.

·         Available in both two-inch and three-inch models, the RuggedJet Go mobile POS solution is a pocket-sized, easy-to-pair mobile receipt printers let your staff comfortably carry them around for a complete shift. That means they get their work done faster with a single printer. It’s never been easier to serve your customers when, where and how they demand to be served.

·         The PocketJet 8 allows your associates to print full-page documents like invoices, sales histories, inventory lists, and product promotions on-demand from computers and mobile devices.

 

Give your store a competitive advantage with Brother support

From the front-of-store to the back office, warehouse and delivery, Brother’s print solutions help retailers secure data, print from mobile devices, accelerate workflows, better serve customers, and increase the bottom line. Brother Mobile Solutions offers an array of flexible, dependable and advanced labeling solutions uniquely suited to give retailers the agility to compete in today’s fast-paced marketplace. With our extensive retail industry experience, proven track record and commitment to innovation, retailers can trust and rely on us to deliver the right labeling solutions, service, and support to keep you agile, stay competitive and improve operational efficiency. Whether you have questions about our products, are interested in a free demo, or want to build a custom solution, we want to hear from 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 than 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.