Tuesday, July 19, 2011

Brand managers of private label food wooing consumers.


Whole Foods, Trader Joe’s, Wegmans, H.E.B., and Walmart all have now utilized End Caps to position their own private label products as top of mind in the minds eye of the consumer. Yes, even the 800lb food retailing gorilla Walmart has recently positioned at minimum 7 End Caps within their stores with either Great Value or Marketside products.

Utilizing legacy category management metric’s Walmart has positioned low end private label brand Great Value and their higher end private label Marketside on End Caps squeezing attention from legacy brands. Consumer have embraced and accepted private label products. What is needed for success is not a battle of private label vs. brands but private label brand managers creating a halo of quality around each private label product.

Wall Street analysts who pride themselves on “state of the art information” need state of the art metrics. A&P and Supervalu tried to please the street with legacy metrics. How well did that work? It’s time to reward those who are garnering customers, while reducing basket size as well. Trader Joe’s private label brands are driving success in sales per square foot now the highest in food retailing.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

Friday, July 15, 2011

Food prepared fresh that is Ready-2-Eat or Heat-N-Eat continues too drive customer frequency.


An exclusive article by Don Longo in Convenience Store News magazine reveled” Dining frequency at convenience stores was up 63 percent, from an average of 1.6 times a month to 2.6 times per month, according to the study conducted by AlixPartners, which also included a business review of more than 120 foodservice concepts from QSRs (quick-service restaurants) to fine dining to convenience stores.”

Regular readers of this blog understand that many new viable avenues of fresh and prepared food distribution are increasing the competitive nature of the retail food industry. No one sector has benefited more over the past three years than the Convenience Store sector. Companies the ilk of Sheetz, Wawa, Rutters and QuickChek have outstanding retail food programs. 7 Eleven is expanding its fresh food offerings while increasing their food positioning with new quality fresh food products.

Walgreens entrance in 2011 has been well documented here as well. Without doubt Walgreens will continue its test of fresh food due in large part to the documented success seen in the Convenience Store sector and early results with Duane Reade. The grocerant niche continues to boom all the while legacy grocery stores and legacy QSR’s may be the unsuspecting capitulators of market share.

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

Thursday, July 14, 2011

Restaurateurs the food landscape is changing are you?


Americans love affair with restaurants is not dying. However increased competition with innovative food with a twist broadens consumer choice of dinning with quality, ease at home. Ready-2-Eat and Heat-N-Eat fresh and prepared food is expanding consumer choice of Mix & Match Meal component options.

Restaurants, Convenience stores and Grocery stores are all selling Take-Away food. Meal Mix & Match grocerant meal components have been the leading sector in retail foodservice of late. It’s menu magic.

Mix & Match grocerant food allows the consumer too spend more time in front of the 65 inch TV. Grocery store brand loyalty and frequency increases with each advancement in quality Ready-2-Eat and Heat-N-Eat food. Here are examples of Mix and Match Meal components from Grocery stores only: What is your local grocery store are selling? More important how are you positioning your brand and products? Below are local grocery or C-store offering from around the country.

Goat Cheese Strawberry Salad: spring mix topped with thinly sliced strawberries, blueberries, walnuts and crumbled goat cheese.
Cajun Seasoned Potatoes: roasted potatoes topped with Cajun blackening seasoning
Coconut Crusted Mahi Mahi and Chicken Tenders: coated in toasted panko bread crumbs and cream of coconut (ready-to cook)

Mexican Lasagna
Mushroom Risotto
Crabcakes
Aegean Salad: shell pasta with Feta, onion, artichoke hearts, cherry tomatoes and kalamata olives
Caprese Panini

BBQ Chicken Quesadilla
Matzo Ball Soupeared Chicken Breast with Peach & Chive Sauce
Parmesan Chicken Fingers
Turkey Roulade with Cranberry Stuffing

Cauliflower Spinach Gratin
Artichoke & Asiago Croquette
Spaghetti with Seasoned Tomato Sauce
Escarole & Beans
Apple Almond Yam Cakes

Cajun Chicken
Chicken Saute with Artichokes
Mushroom & Asparagus Israeli Couscous
Sage Roasted Turkey Breast
Vegetable Fried Rice
Salmon Nicoise Salad

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

Wednesday, July 13, 2011

One, two, three, how dumb is YUM brands.


No legacy food company is a better example of what happens at the confluence of Brand Protectionism and inflated C-level ego’s than Yum brands. Yum brands at one time was at the center of retail foodservice growth in the US retail food marketplace. Now caught up in a quagmire of their own making in part because it was easy to cherry pick profits from a fast growing Chinese middle class all the while spending 5 million plus franchise dollars per year too promote a single horse race? That’s not chicken; it’s a lot of tacos.

Capitulating market share is nothing new for YUM brands, they have been doing it in the US market for years in each of the three key sectors Pizza, Mexican, and Chicken. (Regular readers of this blog I assure you can name to competitors in each sector that have garnered share from Yum.) While hand held food for immediate consumption continues to garner market share Yum brands continues to capitulate share in each sector they still compete.

Legacy companies that practice brand protectionism simply do not understand or forgot that the consumer is dynamic not static. All food brands must maintain a relevant relationship with the consumer or give ground to competitors. Success in retail food service today can be found in Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price.

Today retail food is a mix and match meal component opportunity that is very empowering for the consumer. Consumer’s select by meal occasion what “better for you” flavor or attribute they want. It can be fresh hamburger, low salt, cooked to order, or green packaging. Don’t discount the value of consumer choice or limit the world of “better for you”. Mix and match of small portion, fresh products, green packaging is making meal time a time of convenient meal participation, differentiation and individualization and consumers are responding. Yum must remember its about bundling product not price points. The consumer has moved and Yum must move with them or risk losing additional market share.

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

7 Eleven is ready for Breakfast, Lunch or Dinner think fresh food.


What Do Consumers Think About Lunch at 7 Eleven?  Ready-2-Eat and Heat-N-Eat fresh prepared food is becoming the fastest growing and most profitable sector in retail foodservice aka the grocerant niche and 7 Eleven is in the expanding with fresh prepared food too drive frequency.

7 Eleven is perfectly situated to capture a large share of the marketplace. 7 Eleven will experience strong sales growth  in 2011as they roll out an integrated grocerant food program with distinctive differentiated food consumable’s as an entity with identity by day part.

7 Eleven’s successful food product branding has allowed them to own the flavored crushed ice niche with the Slurpee! They will do it by daypart with other food items as well. If success leaves clues keep your eye on 7 Eleven they are changing and changing fast.

Consumer are multi-tasking more and more; convenience stores with a plethora of food offerings combined with other services may have an edge moving forward. According to a recent study “ 75 percent of consumers are more satisfied when offered a variety of menu options to choose from; 60 percent of consumers say price is important when choosing between lunch options; 47 percent of consumers choose restaurants that are "earth-conscious"; and 76 percent of consumers take calories and nutrition into account when deciding on lunch.” 7 Eleven is on track to capture share of stomach in fresh prepared food.

Grocerant Ready-2-Eat and Heat-N-Eat food is garnering the attention of the consumer. This niche is filled with better for you products that are portioned, priced and portable in ways that many legacy operators have yet to understand. Keep your eye’s on 2011 growth numbers for 7 Eleven.

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

Tuesday, July 12, 2011

Food Oasis a confluence of quality research, sustainability, and the consumer.


Squarely positioned in the heart of the grocerant niche Walgreens continues its consumer focused sales growth and loyalty building initiative from coast to coast with fresh and prepared meal components. Regular readers of this blog understand the huge upside potential the grocerant niche has been delivering in the retail food sector.

Walgreens is one company that has begun testing, expanding and building a sustainable, consumer focused ready-2-eat and heat-N-eat fresh and prepared food program. That program is building “Food Oasis” currently in urban centers across the country in New York City, Chicago, and now in San Francisco.

Grocerant fresh and fresh prepared food has driven growth during our economic malaise in the retail food sector particularly successful in the convenience store sector. Walgreens is now offering an “assortment of fresh fruits, vegetables, whole grains, beans, lean protein and other healthy meal components to help address the need for greater access to affordable, nutritious food” at select urban outlets.

While other food retailers scoff at the idea of fresh and prepared food at a retail drug store chain and dismiss the competitive threat. I suggest that they review Walgreens success and legacy with food. At the same time they must remember that any company with sales of $67 billion that operates 7,730 retail stores in all 50 states should be taken seriously. Walgreens is on the right track and will in five years or less be one of the largest retail food outlets in the US. The grocerant niche is booming.

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

Monday, July 11, 2011

Foodservice Solutions® 5 P’s of Food Marketing are today’s foundation for successful food sales.


Foodservice Solutions® 5 P’s of food marketing are: Product, Packaging, Placement, Portability and Price. When grocerant Ready-2-Eat and Heat-N-Eat fresh and prepared food is thrown into the mix consumer frequency and customer loyalty both increase for retailers driving top line sales and bottom line profits.

Simply look at the retail foodservice growth and sales leaders of today. Trader Joe’s, Chipotle Mexican Grill, Five Guys Burgers & Fries, 7 Eleven are all growth leaders. Trader Joe’s leads in sales per square foot at over $1,750 per Sq Ft. Chipotle, Five Guys and 7 Eleven are all growing units and garnering share of stomach from everyone else. All are members of the grocerant niche.

One of the most interesting new developments is bundling of the meal components with a “better for you” focus. It’s a mix and mach game that is very empowering for the consumer. Consumer’s select by meal occasion what “better for you” attribute they want. It can be fresh hamburger, low salt, cooked to order, or green packaging. Don’t discount the vale of consumer choice or limit the world of “better for you”. Mix and match of small portion, fresh products, green packaging is making meal time a time of convenient meal participation, differentiation and individualization and consumers are responding.

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