Food Retailers Evolving with and Accommodating EV’s is a Must

 

What is brand relevance when it comes to Electric Vehicles (EV’s)? Has your brand extended an invitation to drives of EV’s? If you have not yet, you had better start planning for your customers next steps.  EV’s are going to be relevant to over 26 million consumers by 2030. 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes if your brand is not evolving with relevance it is dying. It’s important that you at least begin the process of looking a customer ahead.

In a report from The Edison Electric Institute (EEI), Electric Vehicle Sales and the Charging Infrastructure Required Through 2030 report was updated creating a consensus forecast now which is based on four independent forecasts done by Boston Consulting Group, Deloitte, Guidehouse, and Wood Mackenzie, as well as analysis from the National Renewable Energy Lab. The report concludes that:

·         The number of EVs on U.S. roads is projected to reach 26.4 million in 2030, up from the projected 18.7 million as projected in the 2018 report.

·         The projected 26.4 million EVs will make up nearly 10 percent of the 259 million light-duty vehicles (cars and light trucks) expected to be on U.S. roads in 2030.

·         Annual sales of EVs will be nearly 5.6 million in 2030, reaching more than 32 percent of annual light-duty vehicle sales in 2030. Compared to the 2018 forecast, this is an increase of more than 1.8 million in annual sales in 2030.

·         Nearly 12.9 million charge ports will be needed to support the projected 26.4 million EVs that will be on U.S. roads in 2030.

·         Approximately 140,000 Direct Current (DC) fast charging ports will be needed to support the level of EVs expected to be on U.S. roads in 2030.

Drivers of these cars are you customers. Now then; Trileaf Corporation, a leading Architectural and Engineering firm, announced that it is exploring the possibility of combining electric vehicle (EV) charging stations with pizza restaurants in a new marketing push that it believes could be a win for both industries.

So, Trileaf is offering free EV Charging Station Branding and Design Studies to pizza franchises to help them evaluate the benefits of electric vehicles for their business and local community. Trileaf's innovative design solutions and extensive expertise in property development make it well-equipped to support pizza franchises looking to add EV charging stations to their locations.

Roger Zimmer, Trileaf's Senior Structural Engineering Manager, stated, "We see this as a winning formula that benefits everyone," …. "EV drivers need more charging options, and pizza restaurants are always looking for new ways to attract customers, and often manage a fleet of delivery vehicles. By bringing these two industries together, we can create a unique and innovative offering that meets the needs of both."

In case you did not know, Trileaf has extensive expertise in creating comprehensive plans and providing exceptional project management for property development. The company offers site assessment and documentation services, helping clients identify existing property conditions and deficiencies for proposed renovations. Trileaf's team of experts conducts thorough due diligence on potential properties, examining factors such as permitting and zoning regulations, environmental concerns, and customer goals. With these capabilities, Trileaf is well-equipped to support the typical EV charging/pizza restaurant combination project and help bring it to fruition.

Don’t get left behind. Trileaf is currently engaging several major pizza chains about the possibility of adding EV charging stations to their locations. Trileaf believes that this could help pizza restaurants differentiate themselves from their competitors and attract a new, environmentally conscious customer base.

Zimmer continued, "We're excited about the potential of combining the convenience of EV charging with the popularity of pizza to create a new market that benefits both industries".

Success does leave clues, as Trileaf has a history of success in developing unique and profitable properties and has recently provided EV Charging Station solutions for multiple airport locations. With a solid reputation for providing exceptional design solutions for hundreds of property locations with nationwide coverage, the company believes that the EV charging/pizza restaurant combination could be its most exciting project yet.

"We're always looking for new opportunities to create value for our customers and our communities," adds Zimmer. "We believe that this new venture has the potential to do just that."

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

In a Battle for Share of Stomach

EV's Matter

Wendy’s Garners Breakfast Daypart Success Sorry Burger King and McDonald’s

 

How do chain restaurants make franchisees happy?  Simple drive top line sales and bottom-line profits at the individual store level. The restaurant business is not brain surgery.  It is all about serving customer one meal at a time, serving Hot Food Hot and Cold Food, Fast, Safely, and with Portability according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

When you are not a niche leader the best thing to do is follow success clues of others.  That is exactly what Wendy’s did with its recent launch of French Toast Sticks.  Burger King ‘owned’ the AM fast food French Toast Stick space.  They took their eye off the ball, took consumers for granted, and Wendy’s spotted the weaken marketing messaging at Burger King.  Wendy’s now anticipates average weekly breakfast sales to reach $2,700 by year's end.

Wendy’s CEO Todd Penegor, stated, on the recent Q3 call he expects breakfast, introduced in March 2020 as the pandemic hit, to continue to grow beyond its current $2,700 a week average sales level.

Penegor continued, “We launched French Toast Sticks, our first major menu innovation in the U.S., which drove a meaningful acceleration in the U.S. breakfast sales over the course of the quarter,” …“We have received an overwhelmingly positive reception from our customers, proving just how much growth is ahead of us at the breakfast daypart.”

In case you did not know, Wendy’s breakfast, was rolled out earlier this year to units in Canada, has possible innovation open in the area of breakfast beverages after the success of copycat product introduction success it found with Fresh Toast Sticks.  

During the all Penegor went on; “We are incredibly proud of the success of our French Toast Sticks launch,”…. “This sweet craveable morning treat has quickly become our No. 1 selling breakfast item. The launch helped us maintain our morning meal dollar share in the QSR burger category and drove a meaningful acceleration in U.S. breakfast sales over the course of the quarter with average weekly sales approaching $3000 as we exited Q3.”

Price matter and the price, value, service equilibrium for The French Toast Sticks and a $3 croissant promotion provided confidence that Wendy’s will able to reach the goal of $3,000 average weekly breakfast sales by year’s end, according to the team at Foodservice Solutions®.

Breakfast sales momentum increased in the third quarter beyond the $2,700 a week levels in the second quarter. “It really accelerated nicely in the back half of Q3,” Penegor added.

Marketing matters in the fresh fast-food space.  “We remain committed to our $16 million global investment in breakfast advertising this year just as we remain committed to fighting for our fair share of the QSR breakfast business,” Penegor said. That $16 Million is consumer relevant marketing messaging in the held held food for immediate consumption space according to Johnson.

Adding relevance for consumers was Wendy’s slow shift into technology. Digital sales momentum held at about 9.5% of sales domestically and 15% internationally, Penegor added.

“We expect these results to accelerate even further in the coming quarters as we launched our loyalty program in Canada just days ago,” he said, adding that delivery typically peaks in the fourth quarter. Rewards loyalty members increased about 10% in the quarter as well, he said.

“We are committed to expanding delivery and mobile order access and efficiency, fine-tuning our user experience and further developing our one-to-one marketing program to accelerate our digital business even further across the globe,” Penegor said.

It just may not be as rosy a picture as you might think as Gunther Plosch, Wendy’s chief financial officer, stated inflation eased slightly in the third quarter, falling to about 15% in the period from 19% in the second quarter. For the year, Plosch said, “We are guiding 15% to 16% on commodities and about 8% to 9% on labor.” Traffic was “slightly negative” in the third quarter and price increases were between 9% and 10%.

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

Foodservice and Gasoline-Powered Car Ban’s

 

The train has left the building on awareness, acceptance, and approval of the ‘halo’ of better for you around banning new gasoline powered cars.  It’s going to happened is your foodservice brand going to fight it to the end or are you preparing to step up and look a customer ahead?

Momentum is building for the U.S. to ban the sale of new gasoline-powered cars.  Soon, New Jersey could become the second state in the U.S. to enact a ban on the sales of new gasoline-powered cars, following California. Tesla is an aspirational brand and they don’t make a gasoline powered car at all. 

I know, they are just selling 500,000 cars a year and 14.500,000 cars are sold in the U.S. a year.  Back to momentum, all car manufactures are now producing and introducing new electric vehicles. Currently, grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food is driving growth or sustaining sales in every sector of retail foodservice.

When asked if they wanted to cook dinner from scratch or assemble dinner from fresh grocerant niche meal components 91.1 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 83.6 chose meal components. Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated “both gen Z and Millennials value of grocerant niche meal components placing a ‘halo’ of better-4-you around them.”

Since California Gov. Gavin Newsom’s announcement of a ban on the sale of new gasoline-powered vehicles by 2035, New Jersey’s Department of Environmental Protection has called for a similar measure in an effort to reduce greenhouse gas emissions by 80% by 2050. Johnson noted that both Gen Z and millennials who are digital natives are also the most aware, accepting, and will be ready to adopt electric vehicles.  Thus, forcing restaurants, c-stores, dollar stores, and grocerant stores to evolve their business models in three important ways:

1.       Install more charging stations

2.       Increase Grocerant niche meals, and meal component offerings

3.       Innovate packaging options that include the ‘halo’ of Better-4-You

By the way, Oregon Sen. Jeff Merkley and California Rep. Mark Levin have introduced legislation that would require 50% of sales for new passenger vehicles to be zero emission vehicles (ZEVs) by 2025 and end U.S. sales of new gasoline-powered vehicles by 2035, while boosting the market for battery electric vehicles and hydrogen fuel cell vehicles. Note: At least 15 countries have made similar commitments already, including Germany, France and Norway.

Regular readers of this blog know that “consumers never go backwards”.  Are you looking a customer ahead? Do you understand what attributes, values, that drive top of mind awareness around grocerant niche meals and meal components?

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

Grocerant niche Energized with New Electricity

 

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food has taken center stage once again in 2020. That said the upward trend has seen 9.45% year over year increases for the past 7 years and prior to that run has a 5.8% average increase for the 9 years before that.  Regular readers of this blog know that and know that the trend is your friend.  Ah, success does leave clues.

While those late to the party are touting the pandemic as the fuel that is driving their current success and ‘thoughtful planning’ the team at Tacoma, WA based Foodservice Solutions® including their Grocerant Guru® Steven Johnson simply have been rewarded with ‘belly laughs. You have to admit, it’s kind of absurd to claim victory when you only came to the party this year and are still half dressed!

So, what are the undercurrents of success driving grocerant niche Ready-2-Eat and Heat-N-Eat fresh food? Our grocerant scorecards indicate fresh fast service via delivery with an electric vehicle. Yes, the new electricity is ELECTRICITY. 

In Miami our scorecard respondents over whelming let us know that they like delivery via the Chevy Spark.  Now we must note none of our clients in that area used the Spark but one pharmacy does, they have 24 and the reception from the consumer is positive. Even more important is notable because we focus on food and beverage yet it still came up and stood out. With 300 miles a charge the Spark could be your next food marketing spark.

Regular readers of this blog also know that Electric Bikes are in demand around the world in urban setting where traffic, pollution, and parking hamper grocerant niche Ready-2-Eat and Heat-N-Eat fresh food delivery. 

Electric Vehicle manufacture UBCO has launched its 2021 product lineup regular readers of this blog know UBCO.  Long lauded for the practicality and versatility of their 2X2 Utility Bikes, UBCO has stepped it up a notch with their latest offering.

UBCO CEO Timothy Allan stated "Over the past two years plus, our product development and international supply chain team have made huge improvements to the performance, durability, security, and intelligence of our bikes. Now the rider experience is next level."

“To date, our customers love the fact that our bikes are so quiet to ride and effortless to maneuver. The new bikes build on this legacy and amplify it. The power to weight ratio is just right, we’ve improved motor efficiency, and made a myriad of improvements to the control and handling,” says Timothy Allan. “They’re a real joy to ride.”

The improvements include a 10% increase in motor efficiency as well as 23% more battery capacity. Together this means a 33% increase in range at top speed. With a top speed of 50kph (limited to 45kph in Europe) the new bikes weigh as little as 64kg (depending on the model) and can travel around 130km between charges. Also, the bike and battery are both designed for disassembly, further improving the sustainability of these electric utility vehicles. Will electricity be you new electricity?

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, 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