Customer Counts at Restaurants are Weak OR FLAT

The line between restaurants and food retailers is growing ever thinner. The fight for America's food dollars continues to intensify as consumers find fresh prepared Ready-2-Eat food options at a wide and growing array of outlets across almost every channel: convenience stores, chain drug stores, restaurants, grocery stores, club stores, vending and even more non-food retailers like dollar stores. While manufacturers, retailers and restaurants worry about choice overload, consumers have embraced their new choices and show no signs of returning to the old ways. This fight is taking place in what is called the grocerant niche.

The restaurant industry is not an industry known for trying to be first as in fastest to market with an ideation, food or technology advance. In the United States the larger the chain in almost all cases the more slowly they are to adopt something than a smaller chain or independent restaurants will. Chain restaurants goal is simple feed one meal at a time in the restaurant while protecting and edifying the brand.

Historically chain restaurant leaders have denied the credibility of start-up competitors as non-relevant. The pizza sector is a great example; evolving from family dinning independents to national chain of "Red Roof" Italian, then to delivery only outlets and now take-N-bake is garnering market share in the pizza sector. (Note: Home Made Pizza Company and Papa Murphy's are further examples of take and bake pizza operators.)

Trends in the Food Industry Point to an Increase in Non-Traditional Meal Occasions

At the intersection of the consumer, fresh prepared food and technology we fine that consumer eating behavior is evolving and is now beyond the control of traditional food marketers. Evolving culture and lifestyle, demographics along with the new uncertain economy are all putting pressure on the American food consumer: Demands of work, economic shrinkage, demands of raising a family, commuting, social interaction, kid's after-school activities, all contribute to a food marketplace where convenience vies with price over legacy brands. Recent advances in food packaging and new points of non-traditional food distribution have empowered consumer choice, and Americans are embracing these choices even as legacy marketers cringe. Who's after restaurant food dollars… simply put… everyone.

Why should you care if Walgreens is selling fresh prepared Ready-2-Eat and Made-2-Order sandwiches? Why should you care if Whole Foods, Trader Joe's, Safeway and Wegmans are selling Ready-2-Eat and or Heat-N-Eat fresh pizza? Why should you care if Coinstar is selling Seattle Best Coffee at 1,000 locations for $1.00?

You should care because they are selling it, and you are not! The fastest growing sector of retail food service for the past five years has been the Convenience store sector. The C-store sectors growth in large part has been driven by fresh prepared food. Non-traditional avenues of distribution are growing, gobbling market share while establishing new patterns of consumption, price points and customer loyalty.

The Shopper is in Control Spurring New Retail Food Formats

Trader Joe's and Whole Foods have created Ready-2-Eat and Heat-N-Eat fresh prepared food items with qualitative differentiation as an entity with identity that has help propel them into Ready-2-Eat fresh prepared food leadership. In fact recent research shows that both Trader Joe's and Whole Foods are each known for high quality (restaurant quality) Ready-2-Eat and Heat-N-Eat foods with distinctive offerings. More important each is leading with innovative products and package size that create value and have positioned each chain as a food shopping destination for meal components customized and personalized for immediate consumption or mix and matched for a meal time at home. In short they are stealing your customers.

Walgreens fresh prepared food is restaurant quality and priced less than Panera Bread or Corner Bakery CAFE. Both Panera Bread and Corner Bakery CAFE thrive in urban locations. Walgreens is now growing price, quality and speed of service advantages over legacy retailers. Legacy restaurant chains must reconsider the speed at which they evolve and adapt or non-traditional outlets will capture profits margins as well.

Traditional views of meals and mealtime can pretty much be discarded. Legacy retailers waiting for the "next big thing" to copy simply might be out of luck this time. Legacy food retailers may not like to be first movers very much but it may prove that waiting too long will not work this time.

Product, Packaging, Placement, Portability and Price are Foodservice Solutions® 5 P’s

The retail food world is evolving at an ever increasing pace filled with innovation in food, portion size, points of distribution, and quality fresh prepared meal solutions. The price, value, service equilibrium is resetting in retail foodservice. In order to edify the brand and reinforce consumer relevance restaurateurs must leverage Foodservice Solutions® 5P's of food marketing. 

Many legacy food retailers continue to practice brand protectionism, stifle the brand while diminishing consumer relevance. The consumer is dynamic not static. Brands must be dynamic, evolving with the consumer. Four more years of watching other retail sectors thrive should be long enough. Success in the restaurant world is no longer simply about what happens within your 4 walls. Get Help Now:

Visit www.FoodserviceSolutions.us  Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. 

Consumers Pick Heat-N-Eat # 1 Pizza Chain Again Papa Murphy’s

When you are Ready-2-Eat Pizza consumers once again this year selected Papa Murphy’s their favorite chain. In a new report released by Market Force Information after polling 6,100 consumers in the pizza category Papa Murphy’s beat the likes of Pizza Hut, Papa John’s, and Domino’s.

While new and exciting limited service brands are dotting the landscape none has garnered the attention that Papa Murphy’s has ranking # 1 the last two years.  One reason is fast growth and customer acceptance of just about everything in the Grocerant Niche which Papa Murphy’s is squarely positioned. Papa Murphy’s came in at No. 1 overall and was rated first for both quality and healthy food and second in fast service and value.

Janet Eden-Harris, CMO and senior vice president of strategy at Market Force Information stated “In addition to ranking restaurants consumers favor most, the study looks at what contributes to these preferences, analyzing factors such as service, food quality, and value.

Here are the categories that Papa Murphy’s scored very high in the poll:

1.       Food Quality

2.       Fast Service

3.       Healthy Food

4.       Friendly Service

5.       Value

Eden Harris said that “Pizza Ranch came in second overall for the category, followed by Papa John’s, Cici’s Pizza, Domino’s, and Pizza Hut. Pizza Ranch received the most votes for atmosphere and accommodating children, and CiCi’s was second in both categories. The fastest service went to Little Caesar’s, while CiCi’s took the top spot for value.”

Success does leave clues and Papa Murphy’s business model combine with food quality seems to be a clue customers like as well.

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991

Market Bistro by Price Chopper Setting New Fresh Food Standards

The evolving food marketplace is on display at Price Chopper’s new Market Bistro banner; its “consumer interactive participatory foodservice, Grocerant Niche focused filled with consumer relevance” according to Foodservice Solutions® Grocerant Guru™.

If you were to ask Neil Golub, executive chairman of the Price Chopper board, to describe what exactly his new concept store is, he doesn't hesitate —  "a theme park of food."  He also said the banner is an accumulation of his experiences in the food industry.  

Market Bistro is fresh, serving fresh local food including growlers of craft cider made from local apples.

The growler station pours other regional craft brews, including Saranac Wild Hop, Wolaver’s Wildflower Wheat and Brown’s Pale Ale.

Setting new standards for Ready-2-Eat and Heat-N-Eat fresh prepared food Market Bistro has other unique fresh features including store-grown hydroponic tomatoes, infused oil and vinegar filling station, and a gluten-free department.

In store on “Bistro Boulevard” you can find multiple stations offering custom burgers, fresh sushi, burritos, and stone-fired pizza.

Consumer relevance, in food retailing today is driven by Grocerant Niche Ready-2-Eat and Heat-N-Eat fresh food.  Consumers drive change and Price Chopper new market Bistro will drive frequency, and customer adoption, top line revenue and bottom line results.  Success does leave clues.

Foodservice Solutions® specializes the Ready-2-Eat and Heat-N-Eat Fresh Prepared Food niche aka the Grocerant niche.  www.FoodserviceSolutions.us  We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.

Smaller Family Size Not Snacking Drives Single Meal Shifting

The United States census reports that 50 percent of the U.S. adults over the age of 18 are single.  Foodservice Solutions® Grocerant Guru™ attributes smaller meal purchases are a direct link to family size.  Snacking is not a trend in a recent survey conducted by Foodservice Solutions® found food consumed by singles were smaller and at more intermittent time periods.

No one can be surprised that more and more consumer are eating alone when 50 percent of the U.S. population over the age of 18 are single.  It is the driving factor in marketing, positioning and selling of Reasy-2-Eat and Heat-N-Eat fresh prepared grocerant niche food.

While the Food Channel’s rating are soaring to new highs, no one wants to buy the food, or clean the kitchen while cooking for either one or two people. What is new is a focus on “Better for You” foods, and increasing awareness on both preparation and sourcing.

The search for authenticity in food has provided a platform for food trucks, Pop-up restaurants, coffee shops and drive-thru of all sorts.  With an increase in multi-generational households, multi-person households with varying work schedules eating alone continues to rise.

Ready-2-Eat and Heat-N-Eat fresh prepared food for “immediate consumption” aka grocerant niche food will continue to rise in popularity and in points of accepted distribution.  We anticipate Drug Stores, C-stores, and grocery stores will continue to increase distribution of quality Ready-2-Eat and Heat-N-Eat fresh prepared food.

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991

Starbucks Leadership Success Evolving with Customer Relevance

In 1971 the first Starbucks opened in Seattle at the Pike Place Market that was 43 years ago.  Today, as they race closer to the 50 year anniversary Starbucks looks more like a company of tomorrow than a company of yesterday.

During the first 20+ years CEO Howard Schultz refused to sell food.  Starbucks always sold non-food items that complemented and extended the Starbucks experience and brand yet Starbucks shied away from food.  In fact with ease you can find article after article with definitive statements from Schultz that Starbucks would never sell food.

Success does leave clues and Starbucks customers were evolving and Schultz listened then began selling food. Selling food did not go so well at the beginning it may have been because the effort appeared half-hearted.  That’s all changed.

During presentations Foodservice Solutions® Grocerant Guru™ asked the audience “if your company was 43 years old, had 20,510+ units operating around the world in the current prolonged economic conundrum how would your sales be up or down?” The vast majority of the audience responds with a resounding DOWN. Well, we all know today that.  Starbucks has become a food & beverage merchant evolving an industry, consumers, and suppliers. Here are some of the recent numbers that edify our view Starbucks is a company of Tomorrow:

1.       6% Global Comp Growth Drove Revenues to $3.9 Billion

2.       6% Global Same Store Sales Growth

3.       U.S. Growth a Positive 6%

4.       Non-traditional channel development growth up 10%

5.       Consolidated operating income up 18%

6.       Earnings Per Share up 17%

How long has your restaurant been in open? Are your sales growing at 6+ percent? When your customers evolve you company must evolve as well. Howard Schultz is to be commended for both following the consumer and leading an industry by changing who he sells, what he sells and where he sells food, beverages, and products.

The Ready-2-Eat and Heat-N-Eat fresh prepared food aka grocerant niche has no better example of success than Starbucks.  Starbucks ability to adapt and evolve with consumers and willingness to extend its brand and products within our current Omni-channel retail is an example for all.

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson at www.FoodserviceSolutions.us    His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. 

Bread is Back for Breakfast

Foodservice Solutions® Grocerant Guru™ found an increase in “Hand Held Food for Immediate Consumption” for breakfast stating “Safeway, Whole Foods, Wawa, Sheetz, Del Taco are joining Taco Bell in new AM special offerings all have breakfast items that are hand held and targeted at time starved consumers.”  Times have changed in a new study by Technomic they found that 63% of Americans regard skipping breakfast as ‘unhealthy’. 

While most of us have heard about the “Waffle Taco” many more are eating breakfast on bread. In a study by Packaged Facts titled Foodservice Breakfast Trends in the U.S.  found that “Flatbread breakfast paninis are on the rise, …. Tim Horton’s and Dunkin’ Donuts are just two chains promoting flatbreads. Cosi, a fast casual eatery with 121 units, just launched a new line of thin multigrain flatbread sandwiches with a lower-calorie profile than regular sandwiches.”

Hand Held Breakfast is fast and getting “better for you” according to Foodservice Solutions® team.  If you’re thinking about joining the breakfast rush here are six findings from the Package Facts study for you:

64% of breakfast foodservice customers get coffee with breakfast

50% of consumers seek out bold flavors

39% of breakfast menu items are baked goods

26% of consumers are motivated by convenient locations

20% of consumer desire foreign foods

12% of breakfast menu belongs to juice

One of Foodservice Solutions® 5 P’s of food marketing is PORTABILITY and during the AM day-part portability combined with speed can make or break your success. Bread is back and while C-store have become savvy with coffee, a breakfast sandwiches differentiated by bread carrier can turn trial in to customer adoption. 

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991

10 Clues for Food Sales Success Foodservice Solutions®

The Ready-2-Eat and Heat-N-Eat fresh prepared food niche continues to grow with new-nontraditional locations, year over years same store sales growth, and new customers.  In order to sustain the successful momentum that many retailers have found; Foodservice Solutions® Grocerant Guru® recommends that retailers integrate Foodservice Solutions® brand building clues into their Ready-2-Eat and Heat-N-Eat products and brands. 

Purpose.  Understand why you are there. Consumer contemporized relevance. Most successful brands are inclusive and include values greater than themselves. Today in the Ready-2-Eat and Heat-N-Eat space it is a lifestyle, a philosophy, an emotion a point in time today that means “better for you”.

A story. Most major brands have a story. Examples: if you like McDonalds restaurants you might be familiar with the story of Ray Kroc or if you use Facebook, you probably know how, where, and when Marc Zukerberg created it.

Consumer interaction. When your Ready-2-Eat and Heat-N-Eat food is first starting out, don't kid 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 you.

Trust. When you've consistently delivered for your customers long enough, you'll gain the type of trust that many brands have. Would you buy gas from BP today? Maybe so, but how long do they have to rebuild that trust?

Consistency. When a consumer chooses a product or service because of brand association, he or she is buying an expectation. Never try to manage expectations.  The expectation must be met time after time.

Differentiation. Expectation is often borne of differentiation. Many brands offer products and services that are commodities but they're successful when developing some differentiation for their products and services that consumers are sold on.

Imitators. Imitation is the sincerest of flattery and you're probably not a 'brand' until you have competitors trying to copy you. Do what you do best and lead your niche don’t follow.

Market leadership. Top brands are usually looked at as leaders in the markets they compete in. Own the space, and understand why you do. Research, consumers, and messaging are key to understanding.

Grow. The best brands are flexible and capable of reshaping and reinventing themselves and their messages over time. Consumers are not static! Your brand must be dynamic and grow, change and adapt over time.

A strong marketing presence. The information super highway is evolving; your message must follow the traffic. Don’t get stuck on the road less traveled. You’re products need to be in growing channels with consumer relevance. Don’t get stuck in a store less shopped.

www.FoodserviceSolutions.us  of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.