Dollar Store Sector Garners a Larger Share of Stomach

Battle for Share of Stomach

Just in case you were not paying attention Dollar General with 15,597 stores has one of the largest store footprints in the US. Restaurants, Convenience stores, need to pay attention, to the fact that rival discount chains Dollar General and Dollar Tree each reported quarterly results that indicate improving sales trends due in part to stores evolving to meet a larger percentage of their customer’s shopping needs through food. 

Clearly, the grocery store sector has been the hurt the most from the growth of the Dollar store sector but now as regular readers of this blog know Dollar Stores are selling more and more grocerant niche Ready-2-Eat and Heat-N-Eat food as Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been reporting.

Here you go just look at this numbers; Dollar General said sales during its fiscal quarter ending May 3 increased by a robust 8.3%, paced by new store openings and same-store sales gains of 3.8%. Officials said remodeled stores—including an increasing number that have added fresh produce offerings in addition to more cold and frozen items—were outpacing the comp growth overall, with fresh produce offerings at its DGTP models experiencing comps near 15%.

Not to be left out Dollar Tree, which operates the Dollar Tree and Family Dollar banners, said sales in its first quarter ending May 4 increased by 4.6% to $5.8 billion and that comps improved by 2.2% overall.

Looking for a reason to worry? At Dollar General, the addition of food at stores continues to be the chain’s “most impactful merchandising initiative,” CEO Todd Vasos said in a conference call.  The chain’s steady increase in cooler doors since 2013 is also providing the sales volume for the company’s announced move to self-distribution. “In addition to being a great traffic and ticket driver, our success in expanding our cooler footprint has provided the scale necessary to initiate DG Fresh.” The chain added 12,000 cooler doors in the first quarter alone.  Is your restaurant, C-store, or grocery store prepared for this success?

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 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Dairy Queen Double Dips Summer Partnerships for Success

Look out McDonald’s, Burger King, and Wendy’s , Dairy Queen franchisee are filled with anticipation for a great summer of sales given the focus, attention, and quality of partnership promotions the chain has planned for this summer according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

This week, DQ launched “The hAPPiest Sweeps Ever—a mobile game and sweepstakes created with The Coca-Cola Company. Fans can enter daily at any DQ location, excluding locations in Texas, for the chance to win DQ gift cards and epic family vacations, including NASCAR® VIP Race and Universal Orlando Resort experiences.” 

Maria Hokanson, executive vice president of Marketing for American Dairy Queen Corporation  stated "This sweepstakes embodies summer with games, adventure and lasting family memories,"  "We're helping fans embrace the playfulness of the season, as well as giving some lucky families once-in-a lifetime experiences." Happy at Your Fingertips: How to Enter

From now through June 30, fans ages 18 years-plus can enter The hAPPiest Sweeps Ever by following three easy steps:

o    Download and register for the DQ mobile app

o    Visit any DQ restaurant (excluding locations in Texas), open the app to register for the sweepstakes, then play for a chance to win

·         Fans must be present in a DQ store to register for and enter the sweepstakes (no purchase is necessary)

·         Click on The hAPPiest Sweeps Ever™ banner to register

·         Enter by feeding a variety of popular DQ menu items, such as Blizzard® Treats, burgers and refreshing Coke® beverages to a delightful emoji character named hAPPy 

o    ·         Fans can enter up to once per day from June 3-30

Participants are eligible to win the daily prize giveaways more than once, but only have the chance to win one of the four weekly grand prizes. The sweepstakes is open to legal residents of the U.S. or District of Columbia, who are 18 years or older. Official rules can be found at DQ.com/happiestsweepsever/rules

That’s not all.  Talk about creating new electricity for a fast food brand. Consumers that want more peanut butter or more chocolate? With the debut of two new Reese’s Lovers Blizzard Treats, fans don’t have to choose. Fans can find out which flavor makes their taste buds sing the loudest by visiting any participating DQ location nationwide during the month of June.

Like the limited-edition Reese's Peanut Butter Lovers and Reese’s Chocolate Lovers Cups that give you more of what you love, the new Reese's Lovers Blizzard Treats give fans the option of enjoying more peanut butter or more chocolate, providing new takes on one of America’s favorite flavor combinations:

·         The new Reese's Peanut Butter Lovers Blizzard Treat features bits of Reese’s Peanut Butter Cups blended with even more creamy peanut butter topping and signature DQ vanilla soft serve.

·         The new Reese's Chocolate Lovers Blizzard Treat includes chunks of Reese's Peanut Butter Cups, hand-spun with decadent cocoa fudge and creamy DQ vanilla soft serve. 

“The limited-edition Reese's Lovers Cups are flying off store shelves, making DQ restaurants a go-to destination to get a special Reese’s Lovers experience,” says Maria Hokanson, executive vice president of Marketing for American Dairy Queen (ADQ). “Whether you’re a chocolate fan or more of a peanut butter fan, the only question left to answer is, which Blizzard Treat will you try first?”  

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.

Digital Multitasking Generation Z Speeds Foodservice Up

Food marketing is about to undergo another transformation as Gen Z enters the workforce as the generation that says ‘I want it now’ according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The oldest members of Generation Z are turning 22 years old in 2019 creating a tsunami of digital natives demanding fresh food faster than any other generating according to Johnson. When posed with the question, (What’s for Dinner?) they will simply look for the solution in the palm of their hand, there smartphone.   

There is a reason that fast food sales continue inching-up, growing share of restaurant dollars. Just like millennials, Gen Z’s frequently visit fast food / quick service restaurants.  That frequency is another reason that fast casual restaurants check average and speed of service is comparable to that of fast food; it’s keep-up or lose out according to Johnson.

In a new report from The NPD Group, Delivering Digital Convenience report noted:

1.       For the year ending December 2018, the number of foodservice delivery orders by Gen Zers reached 552 million, just 1 million less than millennials' delivery orders despite a small portion of Gen Z’s being old enough to order their own delivery. They are also heavy users of restaurant tablets and order kiosks.

2.       Gen Z’s can FaceTime their friends, text their moms, and order a pizza all at the same time

How are you preparing to engage new consumers?  If your food platform getting faster?

Interested in learning how Foodservice Solutions 5P’s of Food Marketing 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.

Local Grocerant Ready-2-Eat and Heat-N-Eat Fresh Food Drives Growth

Foodservice Solutions® Grocerant Guru® Steven Johnson continues to monitor the rise of consumers preference for grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared local food, menu items.According to a new study by A.T. Kearny, entitled Competing in an Age of Multi-Localism. The firm characterizes multi-localism "by preferences for local communities, industries, products and customs."

Courtney Rickert McCaffrey, manager of thought leadership for A.T. Kearney's Global Business Policy Council stated "We are seeing growing demand for local and personalized products gaining momentum," … "Consumers really want a local brand with a story to identify with, particularly millennials and the younger consumer."

It is not just about, local products, overall consumers trust large brands less and less than they did in the past, according to McCaffrey. While Johnson insist that is true but Foodservice Solutions® findings indicate that there is a increasing desire for fresh food discovery in both flavor and new points of distribution.

Interestingly another driver of localization is the growing attention to environmental concerns and the impact of purchases on sustainability. Local products are not shipped over long distances, so it takes fewer resources to bring them to market — plus local foods and beverages are often seen as fresher in the eyes of consumers.

"In our survey, 89 percent of companies globally are already pursing or considering pursuing localization," McCaffrey said.  That said how are you positioning your fresh prepared food?

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 Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/

Aldi’s Grocerant niche Ready-to-Eat and Heat-N-Eat food is getting ‘better-for-You’

Regular readers of this blog know that Aldi is the fastest growing grocery store chain in the United States. According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® Aldi is the fastest growing grocery store chain because it understands the undercurrents driving retail foodservice today better than any other retailer in the US with the possible exception of Amazon.

Aldi's consumer driven private-label brands have earned this German-based supermarket a reputation as one of the cheapest options for home shoppers. However now Aldi is expanding their lineup to include more grocerant niche consumer deemed healthy foods.

Grocerant niche Ready-2-Eat and Heat-N-Eat food are expanding rapidly at Aldi bringing freshly spiralized veggie noodles, a new line of kombucha drinks, gluten-free breads and bagels, frozen kale and quinoa burgers, and a whole section of certified organic meats to all of their U.S. stores. With newly remodeled stores and lots of remodeling underway Aldi is making room for convenient ready-to-eat items—like fresh salads and sliced fruits as well edifying the ‘grocerant niche ‘halo’ of better-for-you with consumers.

Consumers will see a 20-percent increase of fresh ingredients and Ready-2-Eat options, with new products being slowly rolled out to all 1,800 stores currently open by the end of January 2019 as the current remodeling winds up. The focus on health is just one aspect of Aldi's growth plan over the next few years, Aldi plans to remodel and expand its store count to 2,500 by the end of 2022.

Aldi is expanding its Earth Grown line of frozen plant-based products, to include vegan chicken tenders and patties as well as kale and quinoa veggie burgers. Highlighting the expanding role of grocerant niche products, Aldi is introducing meal starters like microwavable quinoa bowls and canned pasta sauce, meatless sausages and hot dogs. So, if your company is not growing as fast a Aldi, it just might be time you considered entering the grocerant niche is a serious way.

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 Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Did Amazon Go Drive Packaged Sandwiches Growth

When Amazon Go opened up foodservice professionals from around the world including our own Grocerant Guru® visited the new stores to try to better experience cashier free check out. That experience was eye opening it was also great.  It was seamless, saving time, while simultaneously reintroducing the consumer and food retailers on how to evolve fresh sandwiches, salads, and snacks with relevance according to Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The simple answer is no; Amazon Go did not drive consumption of fresh sandwiches on its own.  .  However, Amazon insights into consumer data clearly showed that today’s consumers have migrated to handheld food for immediate consumption and restaurant industry pointed to an opening, in large part driving by lack of innovation according to Johnson.

According to Sandelman research “over the past decade, (the sandwich segment) as share of all QSR occasions has trailed off, down by more than 20% from its 2010/2011 level. Fast Casual sandwich chain share of growth has stalled after a steady share gain trend through 2014.

While pre-prepared sandwiches arguably might be the foodservice legs in the sense that packaged sandwiches were one of the original grab-and-go foodservice options identifiable with the industry there is no doubt that Amazon Go has driven incremental relevance to the category.

A new Nielsen study finds almost half of the shoppers (46%) see grocery shopping as a chore and only 10% of those surveyed plan ahead as far as the meal they’ll be having later that day. That means that 90% of consumers don’t know what’s for dinner the next day and are looking for a GROCERANT solution according to Johnson. 

Consumers are going to migrate to retailers that provide that solution according to Johnson. In the year ending June 2018, prepared sandwich servings at c-stores alone rose 3% compared to same period year ago, according to a NPD Group/CREST report published recently. In total number of servings, that’s 5.1 million.

Restaurant sandwich sales are falling, grocery stores, drug stores, and convenience stores sales of handheld food for immediate consumption and sandwiches are growing.  If you are a retailer selling fresh prepared food at a restaurant it just might be you brand looks more like yesterday than tomorrow?

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 Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Are you Exploring Cashier-less Foodservice

Amazon’s Amazon Go, Alibaba’s BingoBox are disruptors that cannot be discounted, dismissed, or detoured according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Cashier-less retail is driving consumer trial, customer migration, and foodservice sector uncertainty. 

Many legacy Grocery stores, Chain Restaurants, and Convenience Stores tout operational efficiencies however most of those efficiencies are based on industry standards established in the 1960’s and have little if any relevance today. 

If you are a foodservice company today and your business model looks more like the 1990’s, 2005, or 2015 your best days just may be behind you according to Johnson. Here is an example The foodservice retail sector is evolving faster today than ever before driven by consumers that want their orders faster than ever before.  Wendy’s, for example, planned to roll out self-ordering kiosks at about 1,000 of its retail locations by the end of 2017 in an attempt to both lure younger customers and to battle long lines at peak dining hours. That solution looks more like a yesterday than tomorrow’s retail template for success according to Johnson.

Self-service kiosk are simply a inside the box solutions while customers are looking from outside the box for incremental food options according to Johnson. What food companies sell, where they sell it and to whom they sell it too have evolved.  Selling the same thing, in the same way for most food retailers is not a long term prescription for success.  Business models are evolving. Does your business model look more like yesterday than today or tomorrow?

Cashier-less retailers today offer a wider variety of fresh prepared food and beverages enabling consumers to customize, personalize ad family dinner, individual lunch or breakfast for less and faster than most  fast food restaurants offer today.  Don’t let your foodservice brand get trapped looking back and playing catch-up while other are braking away from the pack.

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

Grocerant Meal Solutions are Consumer Driven

Foodservice Solutions® Grocerant Guru®, Steven Johnson was the one who identified, quantified, and qualified the Grocerant niche back in the day. In fact Johnson also came up with the name Grocerant to help explain the undercurrents of the evolving foodservice path to purchase.

 Since 1991 Johnson has studied, followed walked through, shopped, and sampled fresh food and consulted for food retailers around the world helping to drive incremental success.  

The undercurrents driving the success of the grocerant niche in 2018 continue to be the consumer according to Johnson. The top five key consumer drivers for retail grocerant success today are:

1.       Time = Fresh Food Fast (Speed of Service)

2.       Digital Footprint designed for Grab-N-Go Ease (Mobile Payment)

3.       Visceral Meal Component Mix & Match Bundling (Emotional Customization = Choice)

4.       Meal Kits both Ready-2-Eat and Heat-N-Eat (Cook or No Cooking Single Serve & Family Size)

5.       Deserts & Snacking Items that complement each day-part (Reward Drives Frequency)

Today retailers that utilize Foodservice Solutions® FIVE P’s of Food Marketing while integrating new menu items can drive incremental customer migration.  How are to incorporating the key into your brands offerings?  

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 www.FoodserviceSolutions.us of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Partnerships Matter at Starbucks

Success does leave clues and Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® as regular readers of this blog know has touted the success of Starbucks partnerships with companies the ilk of Pepsi, Spotify, and now Visa the ability to leverage branded partnerships is a clue no one should over look.  

In the minds-eye Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® there is one dominate element that will power success within retail foodservice over the coming years.  Johnson calls it the new electricity that is partnerships specifically strategic partnerships.   The new electricity must be very efficient for the supply and includes such things as fresh food, sustainable packaging, local beer & wine, urban farming (produce, seafood, etc.), autonomous delivery, cashier-less retail, cash-less payments, digital hand held marketing.

Food companies the ilk of Restaurants Supermarkets, Conveniences Stores, Dollar Stores, and Department Stores selling food that want to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing Ready-2-Eat and Heat-N-Eat fresh food.  That will require brands to embrace new fresh food partnerships more now than ever before according to Johnson. Simply put Starbucks continues is doing just that.

The new Starbucks’ Rewards Visa Card is here the partnership with Chase, officially launched the co-brand credit card, which is integrated directly into the Starbucks Rewards loyalty program. Matt Ryan, executive vice president and chief strategy officer for Starbucks stated ““It’s important to us to make earning Rewards as easy for our customers as possible, and the Starbucks Rewards Visa Card is a powerful tool for us to do that because of how easily it fits into their daily lives,”

What new partnerships are you looking at?  Where are you getting the power to fuel your brands growth?  Where is you the new electricity? Face it a Visa card is not new for retailers but it is new for Starbucks?  What have you over looked?  Does you brand look more like yesterday than tomorrow?

Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us