Restaurant Year Over Year Customer Counts Reflect Failure

 

There is little other way to say it, the restaurant sectors ongoing customer count decline year over year is nothing less that abject failure.  Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® ask’s “Just how well are recycled restaurant CEO’s doing?  When you are running a restaurant and it looks more like 1990, 1999, or 2009 than what today’s consumers want how could you expect to garner new customer let alone keep your old customers?”  

Industry analyst, trade magazines, and local news media spend more time blaming the customer count declines on anything but the facts.  The simple fact is consumers have move on, move beyond, and migrated too new avenues of fresh food distribution according to Johnson.

Are You Capitulating Year over Year Customers

Do you want to Grow 

Share of Stomach

 

In November same store sale were -3.4% year-over-year. When comparing November against the growth rate reported for both September and October, sales took a 1.8 percentage point drop. This November’s sales growth is the lowest posted by the industry since July’s +0.3% according to BlackBox Intelligence.

What matters even more is the fact that customer traffic was down too.  So same-store traffic growth was -4.3% in November, down by 1.1 percentage points relative to the previous month and the worst outcome for the industry since July according to BlackBox Intelligence.

The simple fact is in 2022 the average restaurant is open 21 hours less per week than it was in 2019.  Those talking about staffing levels are simply off the mark and looking for a distraction to edify recycled CEO’s.

What matters to consumers in 2022 is Price, Flavor, Portability, and Service in-unit or on-line. The cause for dissatisfaction may not be readily evident as regular readers of this blog know consumers walk before they talk! What are you doing to evolve?  Are, your year over year customer counts positive?  No, then you are not doing enough.

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

Stagnation Plagues Chain Restaurants

If success does leave clues so does chain restaurant stagnation.  Simply look at the symptoms causing restaurant stagnation including year over year (YOY) customer traffic declines,  YOY price increase’s & YOY copycat menus according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

Is it any wonder that Restaurants Unlimited restaurants is caught in a conundrum of their own making.  Today, they serve fresh food with flavor but they serve it just the way they did in 1980, 1990, 2,000. The food consumer’s have evolved and many full-service restaurants have not, Restaurants Unlimited is one of them forced to close stores last week.   Does your service model look like yesterday or tomorrow?

Ok, then there is Boston Market.  Yes, recently Boston Market once again was forced to close restaurants this time 10% of the remaining stores that means 45 units were closed last week.  All the while Boston Market once the poster child for the high growth grocerant niche Ready-2-Eat and Heat-N-Eat fresh food trend capitulated the space to everyone else including grocery stores. 

Boston Market hired a salesman as a consultant that took them BACKWARDS adding table service?  After spending million’s on backward looking consultants and replacing CEO’s they have nothing but the shell of a viable concept left. Is Boston Market lost in mediocrity or worse on the way to no stores at all?

Rotisserie Chicken is still hot.  The fact is grocery stores, club stores, c-stores and other retailers have done what Boston Market refused to do.  That is evolve the rotisserie chicken space.  The result are clear growing a brand today means evolving with consumers not trying to go backwards.  If success does leave clues and it does one thing is clear Scott Beck had the concept right, financing wrong.  A’ but times they evolve and Boston Market did not.  Does your concept look more like Boston Market than Chipotle who with a new CEO is moving the brand forward?

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.

Battle for Share of Stomach

Is Burger King Back-In the Game or Just Teasing Originality

So, it’s been 13 years since Burger King has had a commercial at the Super Bowl.  Does that mean they are simply continuing to follow the industry leaders or do you think they continue to simply paly follow the leader as Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The new Mystery Box Super Bowl Deal touted as Burger King partners with DoorDash looks to most industry insider that have contacted the team at Foodservice Solutions® as simply more of the same, follow the leader.  Partnerships matter but within branded food marketing originality goes a long way to drive incremental customer trial and adoption according to Johnson.

Johnson continued the undercurrents driving incremental brand adoption putting a new electricity in brand relevance for many younger consumers in require consumer have a branded invitation for interaction and participation and this promotion appears to have that according to Johnson. 

Today, new partnerships can drive sales in foodservice today as your brand is searching for the new electricity to help drive the brand forward. So, just what is your brands new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, beer, developing brands, unique urban clothing, grocerant positioning, Fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different.  In the teaser film features the Burger King King as he prepares a set with direction from a director behind the camera. It ends with the King adjusting the mic, ready to announce what is yet to come during the Super Bowl.

To get your own Mystery Box head to DoorDash.com or download the DoorDash app, enter promo code MYSTERYBOX on all orders of $10 or more from participating Burger King restaurants*. Then wait for your Mystery Box to arrive at the comfort of your home with instructions to follow—keep the content of the Mystery Box till game day. And DoorDash will also offer $0 Delivery Fees** when you order Burger King today through the day after the Big Game. I guess on February 3, 2019 we will find out if Burger King is breaking out or simply continuing to play follow the leader.

For international corporate 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 www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869

Grocerant Offerings Save Darden’s Olive Garden

Regular readers of this blog know that Darden copied Maggiano’s Little Italy’s “Today and Tomorrow” grocerant niche Ready-2-Eat and Heat-N-Eat fresh food offering.  They also know that Darden started and stopped its copied version called buy one take one then restarted it without copying Maggiano’s “Marco Meal for Two”.  Once Darden refocused the grocerant niche they began expanding sales.  

Remember in retail the old adage the trend is your friend and the grocerant niche customer adoption in every sector of food retail is a trend with no end in-sight according to Foodservice Solutions® team. One thing is clear that is it’s working for Olive Garden as year over year same-store sales increased 1.4 percent in the period.  That by the way is the 10^th straight quarter of growth for Olive Garden and for a company in the middle of the casual dining sector that’s a big deal!

The facts are clear according to Olive Gardens CEO Gene Lee who stated “Olive Garden's to-go business is up 17% and 60% on three-year basis.  The fact is as Foodservice Solutions® Grocerant Guru® says “success does leave clues” and up 60% in three years is a sector of business you want to capitalize on.”  

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food that can be Mixed and Matched then bundled into a customized, personalized family meal continues to drive retail success in every sector of retail foodservice today.  Maggiano’s Little Italy’s only mistake was thinking they could not out-perform Olive Garden after Olive Garden copied them.  They were wrong Maggiano’s Little Italy’s has a qualitative point of differentiation in the minds-eye of the consumer.  

So, can Darden do more than copy marketing positioning?  Do they need to?  One thing is sure the team at Foodservice Solutions® continues to be busy helping retailers edify their brand offering with Foodservice Solutions® Grocerant Guru’s FIVE P’s of Food Marketing. 

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

 

A&W Restaurants Branded Repositioning

New avenues of distribution can be the answer too a brands growth problems.  In the case of A&W the brand is once again in growth mode.  Focusing the food, fun, family, and Root beer A&W has found it footing and this year they plan on opening twelve new convenience store locations. 

Globally viable A&W franchisees own and operate a total of 625 U.S. restaurants, with approximately 375 co-branded KFC or Long John Silver’s—87 of which are located in gas stations and c-stores. Over the past five years, A&W has opened 15 c-store units.

This year A&W Restaurants has kicked off an aggressive development program. The new growth initiative

plan includes a new franchising website, the hiring of a public relations firm, increased advertising and greater visibility at trade shows. A&W wants to expand its presence in gas and convenience, as well as traditional franchisees nationwide extending family, food, and fun with increased portability.

If you are not old enough to remember or did not know A&W, is one of America’s oldest restaurant chains, it was previously owned by Yum Brands for nine years. In late 2011, with sales suffering and the segment losing units, a core group of franchisees purchased the brand. Kevin Bazner, A&W’s president prior to the YUM acquisition, returned as president and CEO.

Kevin and his time edified the A&W brand and its franchisee’s and now for the first time in more than 10 years, A&W is reporting system-wide revenue and store count growth. The announcement comes as A&W celebrates its split five years ago from the YUM Brands.

Bazner stated “From day one our goal was to grow profitable sales, and thanks to our franchise partners’ commitment, perseverance and passion, we have accomplished that,” “Today, our franchisees are more profitable than ever before, which sets the stage for a new phase of growth.”

Non-traditional locations reduce franchisees cost, increase opportunity for brand expansion, while edifying brand value.  Mixing non-traditional locations with traditional locations edifies the brand with today’s on the go consumer and families seeking a familiar branded relationship in a fast pace world.

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

Loyalty Programs be Dammed

Loyalty programs be damned in 2016 according to Foodservice Solutions® Grocerant Guru®. With food cost deflation at hand and consumers still recovering from the great recession there is a battle for share of stomach underway. Both Portability and Price are key drivers of customer traffic in 2016 according to Foodservice Solution® team.  

When Technomic edified Foodservice Solutions® 5 P’s of Food Marketing  the undercurrents of change and success within the food industry were forever changed.  That changed can traced back directly too Foodservice Solutions® 5 P’s of Ready-2-Eat and Heat-N-Eat fresh prepared food marketing. 

In 2016 the role of price and portability are being used with greater emphasis than ever before according to Foodservice Solutions® team. When they were first introduced back in 1994; then implemented, and integrated by foodservice companies including Full Service Restaurants, Chain Drug Stores, Grocery Stores,  QSR’s, and C-Store clients.  The 5 P’s are: 

After repeated successful retail food industry adoption of Foodservice Solutions® 5 P’s of Fresh Food Marketing, Technomic conducted qualitative and quantitative research then compiled the following infographic highlighting the importance and consumer relevance that portability play’s today.  The Technomic infographic is entitled Pertinence of Portability:

McDonald’s 2 for $2, Burger Kings 5 for $4 or Wendy’s 4 for $4 are targeting the 50% of consumers over the age of 18 that are single.  These are meals and priced to be pantry busters.  The simple fact is a single person cannot cook a hamburger at home for a $1.00.  Why would anyone cook from scratch and spend more money while earning less than they did before the great recession? 

With commodity deflation as a back drop, fast food retailers see an opportunity to drive solid customer counts increases in 2016 regaining customers lost to grocery stores and C-stores the past 7 years. You have all heard the old adage time is money.  Handheld food for immediate consumption is driving top line growth and bottom line profits while garnering market share in 2016 because time is money. 

Visit: www.FoodserviceSolutions.us  if you are 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 or you can learn more at Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant