Friday, July 8, 2011

Restaurant sector store count down while Convenience store sales numbers are up.


Location, Location, Location combined with new quality proprietary grocerant niche ready-2-eat and heat-N-eat fresh food is creating consumer food purchase choice rotation in retail foodservice. Consolidation may have been the big event with the convenience store sector last year. However it was driven by the success of new quality fresh and prepared food offerings garnering customer from legacy chain restaurants.

According to a recent study by Mintel a leading market research firm. The firm forecasts foodservice sales in convenience stores will reach $22.8 billion, a 4.1% growth in 2011. While the restaurant sector is forecast to grow at less that 1.5% in 2011 according to Chicago based Technomic.

Driven by innovative new programs aimed at consumers in search of fast service, fresh ingredients and value pricing when choosing a retail food solution; convenience stores are proving up to the challenge of delivery top line growth.

Many legacy restaurant chains rather than innovate are recycling legacy marketing promotions, or simply waiting for the economic cycle to turn. The grocerant niche is expanding points of quality food distribution while elevating fresh food choice for consumers.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven

Thursday, July 7, 2011

Walgreens entering fast casual with “need it now” grocerant focused food.


Excitement, niche expansion, evolving retail foodservice the grocerant niche continues attracting consumers in non-traditional outlets. With a focus on grocerant niche better for you fresh prepared ready-2-eat and heat-N-eat food, Walgreens is positioned to capture market share from both the grocery and restaurant sectors.

Walgreens via Duane Reade opened a store at 40 Wall Street in Manhattan that may well prove to be a disruptive new footprint in food retailing. The new store has a “fresh sushi station, The Juice Market, offering fresh made-specialty themed smoothies; a Starbucks coffee and fresh bakery counter; a Coca-Cola “Freestyle” machine dispensing 130 varieties of fountain drinks; and an expanded natural and organic section containing fresh fruits; vegetables, wraps, sandwiches and salads.” O’ya that’s not your average chain drug store. It is the next ideation and a clear step above the 400+ CafĂ© W’s.

Paul Tiberio, senior vice president of merchandising and chief marketing officer for Duane Reade stated “the fresh and healthy food offerings will be unparalleled within the drug store industry…We have positioned 40 Wall Street to best service the ‘need-it-now’ trips of the area’s growing residential and professionals populations, offering an ‘up market’ fresh food proposition and their one-stop shop solution.

Walgreens is not new to retail food. This new grocerant style concept has the ability to work in all major urban area and with a bit of tweaking it may be the template for continued success in the suburbs as well.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven

Wednesday, July 6, 2011

NPD, coffee can tilt the scales in favor of convenience stores if done right.


The confluence of ready-2-eat, heat-N-eat fresh prepared food with a quality coffee program can tilt the consumer frequency scales in favor of convenience stores. NPD’s Convenience Store Monitor recently revealed that “86 percent of coffee purchases are planned.

In fact the report stated that “ The average customer purchase is $6.83. In addition 45% of consumers who purchased coffee between 6 and 10 am included a food item.” Grocerant mix and match bundling products have been leading the retail food service sector in growth for several years.

The reason a strong beverage consumer is so imported was highlighted in the report. “According to the Convenience Store Monitor, dispensed beverage buyers are much different than average c-store customers, who tend to be 18- to 49-year-old males. Dispensed beverage buyers are often female, aged 35 to 64, white collar, Hispanic and from larger households. Those who purchase coffee tend to be 45 to 65 years old, white and blue collar, strong military connection, smaller households and higher income.”

These consumers are migrating to a non-traditional fresh food format and abandoning legacy retail shopping patterns for a more contemporize consumer focused retail foodservice experience. If success leaves clues all food retailers need to pay attention too the quality attributes found within the grocerant niche.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven

Tuesday, July 5, 2011

List Your Restaurant On Google Fast and Free Guest Blog by David Archer


A first page listing on Google search results is the Holy Grail when it comes to search engine marketing. Many companies invest big dollars to appear on the first page by advertising through Google Adwords. For example, to achieve the top ad position when a user searches for “seafood restaurant New York,” the advertiser is paying $2.35 each time someone clicks on their ad. That can become very expensive very fast. Wouldn’t it be better if there was a way to appear on Google for Free? The good news is there is, and Google wants you to do it.

Google Local Business Center is designed as a way for local business owners to provide information about their business, so Google Maps can deliver more relevant findings. But in the Google tradition of ‘more is better,’ it goes far beyond a simple location description. This is an essential online marketing tool that is provided to you for Free!

Beyond listing your business, you can add important restaurant information including your phone number, website, description, category, payment options, business hours and service area. But it doesn’t stop there. You can also add photos and videos, and now they also give you the option to provide both printable and mobile phone coupons. And here’s where it gets really interesting because they provide information on your results – how many viewed your listing, what actions did they take, and where did they come from. And did I mention this doesn’t cost you anything?

Here’s how to take advantage of this great Google resource:

1. Visit http://local.google.com

2. Click on “Put your business on Google Maps”

3. Sign In with your Google account. If you don’t have an account, it’s simple and Free to sign up for one.

4. Click on the “Add New Business” button. The other button is “Upload A Data File” which is a very handy option if you have multiple locations. You can take a spreadsheet of all your locations, and upload them all at once.

5. From there, you start adding your information. It’s as easy as that.

Results appear with the “Local Business Results” map that you often find at the top of a search. Take a few minutes and add your restaurant to Google Local. It’s time well spent.

David can be reached at: http://www.RestaurantMarketingSecrets.net

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven

Saturday, July 2, 2011

Increase Restaurant Profits Through Menu Engineering


Guest Blog by David Archer

Let’s go inside your restaurant to examine ways to turbocharge the marketing power of the most important selling tool you have – your menu! This is where the customer decision can be influenced. It’s the last sales opportunity you have before they make their final choice and place their order. As a traffic driver, you’re trying to increase return visits by capturing the hearts and minds of your customers.

Different restaurant concepts have different types of menus. The following menu enhancing ideas can be applied in one way or another to almost any type menu – you’ll have to decide which ideas work best with your concept. The underlying goal is to increase your check average and your margin. To do this, you’ll first need to know what your margins are. If you sell a steak for $15 with a food cost of $8, and you sell a plate of linguine for $12 with a food cost of $4, you’ll want to feature the linguine because when you do the math, you’re putting an extra dollar in the bank every time the customer chooses pasta over steak.

Once you decide what you want to sell, there’s a variety of ways you can guide the customer into making the choices you want them to make…

• List Management – All locations in a list are not created equally. Our eyes naturally look at the top item in a list and the bottom item, often glancing over the middle items in a list. Be sure to put the items you want to sell at the topand the bottom of your lists, and break up long lists into smaller ones so you don’t have so many unseen locations.

• Box Featured Items – An easy way to draw attention to an item in the middle of the list is to draw a box around it. This has the added value of not only drawing attention to that item, but it also creates two lists out of your long list. You now have a “top” and “bottom” location in the list above the box, and a “top” and “bottom” location in the list under the box.

• Picture It – Pictures sell. If you have a quality photo of an item on your menu, it’s a virtual guarantee that the sales of that item will skyrocket.

• Icons – Draw attention to an item with a little graphic. It can say “New” or “We’re Famous 4 It” or just be a tiny version of your logo to signify it’s your specialty. Any of these will make that item stand out from the others and make the readers eye stop on that line.

• Name It – Add some pizzazz to your menu items by naming them. Would you rather order “Oysters” or “Chesapeake Bay Oyster Platter?” By getting descriptive and creative with your names, it will enhance the sales of those items.

• Exclusive Creations – Customers love to order items that they believe are unique to your restaurant, especially if they can’t experience the same thing at other restaurants. If you don’t have something unique, try creating something new that you can claim as your own. Unique creations can command a higher price point, because customers can’t do a price comparison, so don’t be shy when it comes to pricing.

• Emphasis Add-Ons – Are there ways to enhance your normal plates, such as
“add shrimp to your steak for $2,” “Add Blue Cheese crumbles for $1,” or “Add a second vegetable for 99 cents.” These add-ons are incremental sales that do wonders to your check average!

• Create Combos – Have you ever done the math on the combo meals at quick service restaurants? They usually have little if any discount to the price, yet they make it much easier for the customers to say “yes” to adding a drink and chips to their meal. Look for ways you can create a combo to increase your sales.

• Feature other Courses – Encourage your customers to order appetizers and desserts. Beverage sales are another add-on that increases profits. Feature these items in your menu, or make a separate menu that focuses on selling these items.

• Price Increase – It may be the most obvious way to increase income, although you always walk a fine line between an increase in income and a potential loss of customers. You can accomplish a hidden price increase by adjusting the items you offer on your menu. If you add some NEW interesting items that
are higher priced and get the customers to buy them, you essentially have a price increase. To take this one step further, you could also delete some lower priced items, however you probably don’t want to take off popular items or you will have unhappy customers. If a low-priced item is too popular, try reintroducing your “New and Improved” version that has something added to it, which can justify a price increase.

And that wraps up a good list on ways to enhance your income by focusing on your
menu. Print this out and put it in a file so you can be reminded to look at your menu every few months, to determine if you have new opportunities to increase sales through menu engineering.


David can be reached at: http://www.RestaurantMarketingSecrets.net

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven

Friday, July 1, 2011

To Coupon, Groupon or Poupon Your Restaurant Marketing


Guest blog by David Archer

It’s one of the biggest decisions you have to make when planning your restaurant marketing, and with today’s weak economy the pressure is greater than ever to coupon as a way to drive guest traffic. But is that the right decision? There are a few key questions you need to ask before jumping onto the coupon bandwagon.

Do I Want To Cheapen My Brand Image?

Remember the old mustard commercial where the Rolls Royce pulls up, the passenger rolls down the window and asks, “Pardon me, do you have any Grey Poupon?” That’s a classic example of a product that built a brand image of being a higher-class, premium product worth paying a little more for. When customers perceive a product as a premium product, you cheapen the value in their minds when you start couponing and reducing the price of the product. Take that to the extreme and you end up in the pizza category, where couponing reaches as high as 70% of transactions, and customers feel like suckers if they actually buy the pizza at menu price. So is your restaurant a Grey Poupon Restaurant, or are you a generic mustard restaurant?

Can I Afford To Coupon?

The sharply-dressed sales reps will come in and talk a great story with you, telling you how advertising with them is an investment and the restaurant will be full and there will be a line out the front door if you put coupons in their publication or on their website. Funny thing is if you ask them to guarantee the results or you pay nothing, they won’t be willing to take that bet because they want to make their money. But before you commit, you need to do your marketing math to see if there’s any way that you will also make money.

Example 1: Buy One Get One Free – To make the math easy, let’s say you sell your plate for $10 and have a 30% food cost, so for each plate it costs you $3 dollars. For the BOGO Coupon, you receive $10 for the “Buy One,’ and you have $3 x 2 = $6 in food costs for the two plates. So you’ve cleared $4 dollars. Those 4 dollars have to cover the advertising costs it took to print and distribute the coupons, plus rent, labor, and all your other fixed expenses. If you figure it was an incremental sale that you wouldn’t have had otherwise and all the other expenses are fixed that you already would have paid, then you probably did alright especially if you were able to add on some beverage and dessert sales.

Example 2: GROUPON 50% OFF – This new popular traffic driver comes in many different forms… Groupon, Living Social, Radio Stations’ Half Price Fridays, and now Google and others are jumping on the bandwagon. But beware, 50% Off may sound the same as Buy One Get One Free, but in these deals it’s a far different animal. For many of these, the consumer buys your Gift Certificate for half price, so a $10 Gift Card is sold to them for $5 dollars. Now you have to split that $5 with Groupon or the other media outlet. So you receive $2.50, and your food cost is $3.00. No matter how many guests the promotion drives, you are losing money. The more successful the promotion is, the more money you will lose.

How Will I Get The Coupons Distributed?

There are endless ways to distribute your coupons. From free-standing newspaper inserts in the Sunday paper to direct mailers, local coupon clippers, nickel ad papers, and a wide variety of mom and pop coupon mailers, you have options. Add in the internet and all the coupon sites, there’s no shortage of outlets for your coupons. You also can distribute them in your restaurant but this needs to be done strategically. Use them as bounce backs that are good on their next visit. The absolutely worst way to coupon is to place a stack of coupons by your register. Every customer will use a coupon at that point, and you are just giving away money.

If I Start, Can I Ever Stop Couponing?

That question can only be answered by you. For many, coupons are like a drug. They distribute the coupons, see the spike in guest traffic, then want to see that again next month. If you judge success on year to year comparisons, you had that traffic spike last year so you want it again this year to match last year’s results. But the real test should be whether those guests are making you any additional profit.

The reality is that most coupon customers are not loyal. If they don’t have a coupon they probably won’t come back in for another visit, so they have to be profitable on their coupon visit. Know your numbers, do your coupon math, and you’ll be able to judge whether you should continue couponing or not.

David can be reached at: http://www.RestaurantMarketingSecrets.net

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven