Consumers, Convenience, Corner Stores and Technology

At the intersection of technology, foodservice, consumers, and convenience is one start-up that is quite possibly the next big headache for legacy grocery stores and convenience store operators according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Paul McDonald and Ashwath Rajan, both former Google employees, joined to start Bodega with the aim of bringing the corner store to the consumer. "At Bodega, we're combining the convenience of online ordering with the instant gratification of real world retail. We're building hardware, software and supply chain operations to create delightful automated stores that are only a few feet away and always stocked with what you need," the company stated on its website.

That places Bodega within the front lines of the grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food.  Fresh food fast with added benefit of those one off items you ran out of that you need now according to Johnson.

Let’s pause here for a moment to make sure you understand just I’m saying.  Success leaves clues and regular readers of this blog know that McDonald’s sells more toys than any other retailer in the world. You also know that Starbucks foundation of success was built on Mix & Match bundling of retail products from coffee Machines, coffee cups, music, movies and more with coffee. Regular readers also know that mix & match bundling is a key driver of the growth of the grocerant niche.

According cofounder McDonald  stated "With Bodega, we're bringing that same ease and convenience to those of us that don't have a corner store by putting one right where you live and work,"… "We've created small, automated stores stocked with the essentials you need, right where you need them  — whether it's snacks at the gym or toiletries and household goods in your apartment's lobby."

Currently there are 30 live Bodega locations in the San Francisco Bay area.  McDonald continued Bodega,  wants to bring commerce to places where commerce currently doesn't exist.” According to our Grocerant Guru® “faster, fresher, and convenient each resonates with consumers today, when you add in technology it elevates relevance edifying a ‘halo’ of better for you with the consumer.”  Are you evolving with consumers?

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

Are Grocery Stores Big Money’s Big Mistake

Did big money do what it has always done that is drink out of the cup of compliancy? Today food consumers are eating out at restaurants less they are also cooking from scratch less at home than ever before.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® consumers are migrating to Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared meal components at an accelerated rate.

According to commercial real-estate firm CoStar Group “Commercial square footage of retail food space per capita last year set a record, with 4.15 square feet of food retail per person.” That is nearly 30 times the amount of space allocated to groceries at major chains in 1950.

The simple fact is consumers are buying meals and food for takeout today at companies the ilk of IKEA, Eveytable, EatFitGo, Snap Kitchen, Boston Market, Wawa, Sheetz, and Dollar General.  Never before in America has so much retail square footage been devoted to selling food simply put there is just too much.

A massive build-out by retailers has left the country piled up with grocery shelves as consumers are shifting from big weekly shopping trips to more snacking and to-go meals. The mismatch has flattened retail sales and leaves the industry vulnerable to a wave of closures that some executives, bankers and industry experts think is coming soon.

While shopper loyalty to conventional grocery store chains lifted same-store sales for food retailers by at least 3% annually since 2013, that metric was flat in 2016 and is projected to remain static this year as competition grows, according to FactSet. “There’s only so much food we can buy,” said Suzanne Mulvee, director of research for CoStar.

European fresh food grocery retailers Aldi and Lidl are vying for U.S. market share, investing over $4.5 Billion combined in the US market over the next three years according to the team at Foodservice Solutions®. That will increase the retail footprint while elevating competition for share of stomach in all retail channels.

Change is in the air it is reported that Kroger, the nation’s largest traditional supermarket chain by stores and sales, is reducing its new-store openings this year to 55 from 100, a nearly billion-dollar drop in capital expenditures, and its chief financial officer, Michael Schlotman. All the while non-traditional meal and meal component grocerant niche retailers the ilk of Snap Kitchen, EatFitGo, Everytable just keep opening new units and expanding their reach.

Wal-Mart Stores has no other move but reposition to the middle of the grocery price range according to the team at Foodservice Solutions® as it plans additional cuts at will build 55 supercenters and smaller-format stores in its 2018 fiscal year, down from the 132 it opened in the 12-month period ending in January.

With drug stores ability to drive incremental food sales one has to question if the corner grocery store will become a drug store, as today food, beverages and other consumables account for about a third of transactions at drug stores nationwide.

Many legacy chain restaurants will continue to close units as will legacy grocery store chains and according to the team at Foodservice Solutions®.  Consumers will continue to migrate to new non-traditional points of fresh food distribution.  Is your company evolving fast enough?  Are you putting money into food retail that looks more like yesterday than tomorrow?

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.

Dunkin’ Fortifies it’s Brand

Edifying a brand with contemporized relevance is a sure way to build top line sales and bottom line profits according to Tacoma, WA based Foodservice Solutions® Grocerant Guru® Steven Johnson.  That is exactly what Dunkin Donuts did when it created Energy Punch.

Dunkin’ Energy Punch Powered by Monster Energy offers Dunkin’ Donuts’ guests a cool new choice for staying energized as the temperatures rise. The new beverage combines one can of Monster Energy mixed with either classic Blue Raspberry or Strawberry fruited flavors, served over ice. Select areas including Metro New York will offer Dunkin’ Energy Punch Powered by NOS Energy Drink.

Dunkin’ Energy Punch began as a creation developed by a couple of Dunkin’ franchisees in New Hampshire. Excitement for the beverage continued to grow and Dunkin’ Energy Punch made its way to thousands of participating Dunkin’ restaurants in New England, Miami and West Palm Be

To help keep guests energized all summer long, Dunkin’ Donuts is now offering Dunkin’ Energy Punch at participating Dunkin’ Donuts restaurants nationwide. Co-branding and food and beverage fortification to empower a ‘better-for-you’ outcome are the undercurrents driving grocerant niche Ready-2-Eat and Heat-N-Eat fresh foods continued growth.

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

ASAP Poke Fresh Fish Fast

Regular readers of this blog know that a ‘Ghost Restaurant’ a restaurant without a location aka it has no location. On July 11, 2017 Lettuce Entertain You is debuting ASAP Poke, a delivery-only restaurant that will be serving signature and make-your-own poke bowls and rolls.  Our Grocerant Guru® says Fresh Fish Fast is ‘Better-for-You.  ASAP POKE will help evolve the virtual space once again and Lettuce Entertain You has the foodservice experience to give it a hell of a shot.  But will it work? Is Poke the right product? ASAP Poke was born out of a single idea: to bring Chicago the freshest, sushi-quality fish coupled with seasonal ingredients, as fast as possible.

Chef Hockett of ASAP Poke Stated: “The idea for this concept came about as we were sourcing some the best quality fish for our restaurants, and we thought it would be great to be able to share this product with our guest in a more convenient, affordable way.“With ASAP Poke we are not only able to get creative with our signature bowls and rolls, but also give guests the option to choose from an extensive list of ingredients, toppings and sauces to create their own.”

ASAP Poke will be available for delivery Tuesday through Saturday for lunch and dinner and will offer a selection of four, signature poke as well as the option to create your own combination; both can be ordered as a poke bowl or a six-piece maki roll. All pokes are available in two sizes: regular for $12.95 (24 ounces that can be ordered as a bowl or a roll) or shortie for $9.95 (16 ounce available as bowls only). Once you pick your base, you can choose from chef’s signature combinations including:

Classic Avocado Poke: Ginger, Scallions, Classic Poke Marinade, Rice, Sliced Cucumbers, Avocado, Soy Beans, Shredded Lettuce, Watermelon Radish, Seaweed, Pickled Ginger, Sesame Seeds

Big Island Spicy Poke: Ginger, Scallions, Rice, Spicy Mayo, Pickled Mushrooms, Diced Avocado, Watermelon Radish, Sliced Jalapeños, Shredded Lettuce, Pickled Ginger, Sesame Seeds

Maui Crunch Poke: Ginger, Scallions, Ponzu Sauce, Rice, Shredded Lettuce, Pickled Mushrooms, Pickled Ginger, Watermelon Radish, Seaweed, Crunchy Shallots

Yuzu Poke: Yuzu Dressing, Ginger, Rice, Sliced Cucumber, Seaweed, Tomato Salsa, Pickled Ginger, Tobiko, Furikake

Prefer to make-your-own poke? ASAP is consumer interactive and participatory as customers can also design their bowl or roll depending on their tastes. Start with a base of sushi rice, brown rice, quinoa tabouli or greens. Next, pick your protein: tuna, salmon, hamachi, and gingered beets. Add up to six toppers including: soy beans, sliced cucumber, watermelon radish, seaweed, tomato salsa, avocado, shredded lettuce, pickled ginger, pickled mushrooms, sliced jalapeños, ginger, sliced scallions, tobiko, and more.

If success does leave clues and it does Lettuce Entertain You Chicago’s track record is stellar and has been copied by many.  The team and Foodservice Solutions® believes that this ‘better-for-you’ fresh seafood ideation will be copied as well. 

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.

Grocerant Guru’s 10 Clues Too Drive Customer Counts UP

The retail foodservice customer is not fickle they are evolving, dynamic and moving forward searching for ways to many dinner complexity free according to Foodservice Solutions® Grocerant Guru®, Steven Johnson.  I hope you are not the Neanderthal brand marketer we talked about in yesterday’s blog.  

The consumer is dynamic not static and all food retailers and start-up fresh food retailers must strive to create or maintain consumer relevance while evolving their own brand.  Foodservice Solutions® Grocerant Guru® Steven Johnson believes that the following ten clues to build contemporized food brand relevance that will edify your brand while building top-line sales, bottom-line profits and year over year customer counts.  Here are his 10 Clues:

1.       Purpose:   Customer relevance with evolving focus.  The most successful brands are inclusive, include values greater than themselves.  That means they focus on a Lifestyle, a philosophy, an emotion, a point in time.  Today that must include a halo of better for you the consumer as better for the consumer is better for the retailer. 

2.       A story: Most major brands have a story. Examples: If you like Wawa you know the family history, If you line McDonald’s you have heard the story or seen the movie If you like Ford vehicles, you might be familiar with the story of Henry Ford or if you love your Nikes, you probably know how the Nike swoosh logo was created. You get the picture.  What’s your story and where is your story being told?

3.       Consumer interaction:  Foodservice Solutions® Grocerant Guru® firmly believes that within foodservice retail they brand, products, and footprint must be consumer interactive and participatory. When your business is first starting out, don't fool yourself into believing that your marketing efforts are 'brand building' efforts. They're not because to build a real brand, you have to have an extensive track record with consumers. Consumer will build the brand and the story for with you.

4.       Trust:   Establish operating standards that are measurable for every department within your company and each standard must edify a customer facing tactic, communication, service, or product.  When you've consistently delivered for your customers long enough, you'll gain the type of trust that many brands have.  Would you buy a Edsel today? Maybe so, but you are buying to today as a relic not as a product of today.

5.       Consistency:  Consumers today choose a product or service because of brand association.  The consumer is buying an expectation, a promise. Perhaps it's the expectation that the branded product is of higher quality or that the service will be provided in a more efficient manner. The expectation must be met time after time.

6.       Differentiation: Customer migration from a legacy  to an new brand is often borne of differentiation. Many brands offer products and services that are commodities but they're successful in developing some differentiation in the product or the avenue of distribution for their products and services that consumers are sold on.

7.       Imitators: Imitation is the sincerest form of flattery and you're probably not a 'brand' until you have competitors trying to copy you. Enough said. (However, we have imitators trying to play catch up and we thank you for edifying our brand and sharing this blog.)

8.       Market leadership: Success does leave clues, collect your clues and own them. Top brands are usually looked at as leaders in the markets they compete in. Own the space, and understand why you do.

9.       Evolve:  The consumer is dynamic not static your brand must be as well.  The best brands are flexible and capable of reshaping and reinventing themselves and their messages over time. Brands are either growing or dying.

10.   A strong marketing presence: The information super highway has evolved into a mobile marketing platform in the palm of your customers hand; your message must follow with the traffic.  Don’t get stuck on the road less traveled.

Success does leave clues feel free to reach out for a private corporate presentation, confidential engagements, educational forums, or keynote. Contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® at: 253-759-7869 Linkedin.com/in/grocerant/ or www.FoodserviceSolutions.us  Facebook.com/Steven Johnson Steve@FoodserviceSolutions.us

Foodservice Channel Blurring Garners Attention as Wawa Wins

Channel blurring only exists in the BLIND eye of Neanderthal chain restaurant and Grocery Stores brand managers according to Tacoma, WA based Foodservice Solutions® Grocerant Guru®, Steven Johnson as he stated back in 2010 and it has never been more evident than today.   

The line between foodservice channels exist only in the minds-eye those protecting their own jobs not those interested in the evolving consumer, path to purchase, retail sales growth according to Johnson.   A new study shows consumers regard the service provided by Wawa  (a state of the industry convenience store retail chain), as superior to what they get at Fleming’s Prime Steakhouse. Simply put brand protectionism is dead once again our Grocerant Guru® said that first back in 2009 but so much for understanding the undercurrents driving our evolving foodservice sectors.  

Retail foodservice today is about Share of Stomach, and you are either capitulating share of stomach or garnering share of stomach customer by customer.  Is your retail foodservice brand garnering year over year customer counts or capitulating customers?

Edifying Foodservice Solutions® findings recent research by White Box Social Intelligence found “Wawa is more likely to meet service expectations than all 619 restaurant brands the researcher monitors on a constant basis. Closest to the c-store chain in positive service evaluations was Papa Murphy’s, followed by Seasons 52, Fleming’s and Wienerschnitzel.” The consumer knows best.  Is it time you began rethinking how to integrate Foodservice Solutions® FIVE P’s of Food Marketing?

White Box Social Intelligence also revealed “consumers’ intentions of visiting the monitored restaurant chains have continued to wane, by a hefty 6.4%, and that they believe the food quality of those brands has slipped from a year ago. Yet their estimation of restaurant service rose by 10.2% year over year. Wawa was one of the brands that scored high in customers’ intention to return, with only Qdoba and Carvel ranking higher.

This information will form a new monthly benchmarking report from White Box’s parent company, TDn2K, the source of People Report and Black Box Intelligence data. The Restaurant Guest Satisfaction Snapshot scores chains on six attributes: service, food, propensity of customers to return, beverage and value.

Wawa’s top rating on service was indeed a surprise, says Victor Fernandez, TDn2K’s executive director of insights and knowledge. “It all depends on expectations, whatever the expectation of what good service is,” he says. “Obviously people expect something different from Wawa than they do from Fleming’s.” But they’re more likely to have those expectations satisfied at the c-store chain, he indicated. While Victor was surprise no one on the Team at Foodservice Solutions® was after conducting over 7,790 Grocerant ScoreCards.

The 1.2% dip in consumers’ estimation of chains’ food quality was also a surprise, Fernandez said. It could be a statistical blip that’s reversed in the May Restaurant Guest Satisfaction Snapshot, he suggested, or it could be the result of two more persistent factors.  So, Victor we think it is time for you and others to look at some of those persistent factors aka consumer facing grocerant niche valued attributes.

The fact of the matter is the consumers have moved on and channel blurring only exists in the BLIND eye of Neanderthal chain restaurant and Grocery Stores brand managers not in the minds-eye of the consumer.  Restaurants, Grocery stores, must evolve or risk capitulating incremental customer counts to other retailers that are addressing the attributes that are relevant to consumers today. 

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. 

7-Eleven Industry Leadership on Display

This week 7-Eleven Inc. the global leader in branded convenience store foodservice launched an initiative to provide customers with the calorie information for its proprietary fresh food and beverage offerings. Many of our regular readers remember back in the day (1965) when 7-Eleven branded and rolled out the Slurpee.  Leaders lead and 7-Eleven is implementing fresh food calorie disclosure. 

The disclosure includes “floor stands stocking Big Gulp cups, along with translite signs and clings attached to fountain machines, provide the combined calorie counts of a Big Gulp beverage and a hot food item such as a Big Bite hot dog or chicken sandwich. Signs positioned near baked items provide the combined calorie counts of a medium iced coffee and two cookies or a fudge brownie.”

A 7-Eleven spokesperson  is quoted as saying "7-Eleven's mission is to give its customers what they want, when and where they want it, Research shows customers expect to have calorie information available when deciding whether to purchase a product, and 7-Eleven is therefore moving forward with calorie disclosure."

The undercurrents of menu labeling requirements have put increased scrutiny on fresh food retailers around the globe and clearly 7-Eleven has stepped up.  At its Canadian stores last year 7-Eleven rolled out price labels and menu boards that provided calorie counts for more than 300 non-packaged food and beverage products.

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.