Grocerant Fresh Food Fuels Dinner Debate and Disruption

Success does leave clues and how and where consumers obtain dinner is a key driver of grocerant niche growth and foodservice channel migration according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The Debate

Cook dinner, eat at a restaurant, pick-up a prepared meal and take it home, or order a meal or meal components delivered. At noon there are 80.3% of consumers that do not know what’s for dinner.  The simple fact according to Foodservice Solutions® Grocerant ScoreCards is in 2018 at 4 PM 64.9% of consumers do not know what they are going to have for dinner. 

The undercurrents of demographic change continue to drive the uncertainty according to Johnson fully 47.0% of Americans over the age of 18 are single and the need to cooking from scratch and planning for them is simply not top-of-mind.  In fact fast our 2018 ScoreCards indicate that for singles fully 76.2% top choice is ‘where to pick up dinner’.

The Choice Cook or Up-Pick-Up Meal Components

Consumers today have a plethora of choices for when it comes to dinner.  Traditionally consumers would buy food at a grocery store and cook from scratch but that was 1950-1970 and then the undercurrents of change began with an abundance of great restaurant choice and increasing fresh prepared food options at grocery stores, drug stores, and convenience stores. All driven by increasing time constraints on consumers combined with an increased lack of cooking skill set for new international flavor profiles consumers have become accustom.

Recent internal research by Albertsons revealed that 80% of its customers say they want meal kits in stores, according to Pat Brown, the chain’s vice president of strategic business initiatives, in an interview with CNBC. He also said that 85% of online meal subscribers want an in-store option. Albertsons bought meal kit pioneer Plated last fall and is currently rolling the line out to stores nationwide.

Hello fresh has followed suit and is now offering its meal kits at 581 Giant Food Stop & Shop grocery stores.  Johnson reminds us that those meal kits are for customers that want to cook at home and do dishes.  It’s important to note that those meal kits in grocery stores are competing with the service deli where rotisserie chicken and many other fresh prepared meal components are being sold and many are being sold for less than the cost of the meal kit.   

Bain & Co. estimates meal kit sales are “$1.5 billion annually” our Grocerant Guru® reminds us that number is like a cup of water in the Pacific Ocean. Nielsen states that meal kit spending is growing ‘more than three times as fast as other channels’ which might be more important number.

Restaurants & C-stores

Remember that 47.0% of all Americans over the age of 18 are single and restaurants and fast food drive thru restaurants specifically offer fast fresh food fast that is portable and priced very competitively has become a compelling option for what’s for dinner. Fast casual restaurants along with full service restaurants are increasingly offing delivery, pick-up or third party food delivery to compete with the drive-thru.  

The National Association of Convenience stores as regular readers of this blog know has tested their own meal kits in stores. C-stores have a decided advantage to restaurants and grocery stores according to Foodservice Solutions® Grocerant ScoreCards.  That advantage identified by 81.9% of respondents was the ability to mix & match meal components. Speed of service was second with 73.5% of consumers saying it was faster than either a restaurant or a grocery store.

Food Manufacturing Conundrum

Manufactures the ilk of Kraft-Hines, Campbell’s Soup, Tyson, Smucker’s, General Mills, and Unilever all must rethink how they are selling food.  Rethink where food is being bought? Most important food manufactures must reinvest in who is today’s consumers. Food manufactures must ask themselves do our products look more like yesterday than tomorrow.

So just what is your New Electricity? 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

McDonald’s Breakfast is Big and getting Bigger

Few retailers have the insights or brand strength to take on companies the ilk of Starbucks or Dunkin’ Donuts breakfast sales or catering but McDonald’s is one company that is doing just that with well-established branded products the ilk of Egg McMuffin, McGriddle, Fruit ’N Yogurt Parfait.

So McDonald’s is now testing breakfast catering in 195 restaurants in the Orlando area. The bundled morning meals include more than a dozen pre-selected catering trays serving everything from Egg McMuffins to pancakes to parfaits.

Offices can now order catered breakfast meal bundles for early morning meetings instead of ordering Donuts or Expensive Coffee.  Like ti should be breakfast catering is only available during breakfast hours. The packages, available for delivery through UberEats or for pickup, target groups of 6, 12 or 18 and larger.

A McDonald’s spokesperson via press release said “Prices are determined at the individual restaurant level and may vary,” According to a restaurant along Orange Blossom Trail in Orlando,. A catering tray for a party of 12 dubbed “Early Fiesta” cost $38.85. It includes 12 sausage burritos, 6 parfaits, 6 Fruit & Maple Oatmeals, and 6 Baked Apples Pies.

The McDonald’s Florida experiment comes as fast-food chains are focusing more on off-premise sales fighting to regain breakfast sales losses to Convenience Stores and Grocery Store service Deli’s according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

Regular readers of this blog know that in  March, Dunkin’ Donuts began offering catering in 16 locations in Massachusetts, Vermont, Pennsylvania and Connecticut. The bundled Dunkin’ Donuts packages, geared for parties of 10 or 20, range in price from $30 to $96. Plates, silverware and an exclusive “DD” branded tablecloth come with each catering order.

How is your brand expanding its reach?  Can you leverage dayparts to drive sales?  Can Delivery or Catering become your new electricity that drives top line sales and bottom line profits?  The team at Foodservice Solutions® can help you identify, quantify, and qualify new points of distribution, new products, and new daypart opportunities. Contact: Steve@FoodserviceSolutions.us  Are you looking a customer ahead? 

Locali's Quinoa Bowls Extend the Brands Reach

Grocerant niche ‘better-for-you’ Locali’s is continues to drive the halo of better-for-you- foods beyond the current  health-conscious convenience store and neighborhood deli according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Locali, is now extending it quality food offerings with four pre-packaged vegan and gluten-free quinoa salad bowls in Whole Foods Market stores throughout Southern California.  Regular readers of this blog know that  Locali, has locations in Hollywood, West Hollywood, Venice and Downtown Los Angeles, is changing the way consumers view healthy eating.

While the line continue to blur for food retailers Locali’s diverse menu of award-winning, “last meal-worthy” salads, sandwiches, smoothies has captured the attention of influential companies across the nation, and was asked to cater an event at the United State of Women Summit in May 2018, in partnership with Postmates. Johnson says think consumer food relevance not C-store, deli, or restaurant the ‘halo’ around Locali’s is fresh quality better-for-you’ food.

Now Whole Foods offers four of Locali’s “Killer Quinoa Bowls,” including: The Big Daddy with quinoa, arugula, vegan and gluten-free chicken marinated in spicy vegan buffalo sauce, celery, black beans and creamy dill dressing; The Krazy Kale with quinoa, shredded kale, black beans, chopped tomatoes, cucumber, sunflower seeds and chipotle lime dressing; The Odyssey with quinoa, spinach, hummus, chickpeas, artichoke tapenade, tomato, cucumber, kalamata olives and creamy dill dressing; and The Deconstructed BLT with quinoa, chopped romaine, tempeh bacon, tomato, avocado and maple mustard dressing.

Has your menu evolved with consumers? Is your menu incremental to your brand? Or is you menu your brand?  How do you plan to evolve your best brand attributes?  Where are you selling your fresh prepared food?  Success does leave clues and growing your brand where your consumers shop for food is a very good clue.

Are you looking for a new partnership to drive sales? 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

JAB Holdings Focusing on Hand Held Food for Immediate Consumption

The undercurrents of consumer migration from traditional avenues of fresh food distribution to new non-traditional avenues of fresh food distribution have been well documented by Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

One company JAB Holding Co continued its food-industry buying spree this week this time targeting a leader in the grocerant niche chain restaurant Pret A Manger that excels with hand held food for immediate consumption and has outstanding growth prospects according to Johnson.

Jab Holding Co is the same company that bought Panera Bread to JAB in 2017 another company that excels with hand held food for immediate consumption, catering, and delivery.  The food category similarities place Jab Holding Co within the top tier of the growing grocerant niche retailers.

Pret-A-Manger was, founded in London in 1986, it currently has 530 locations worldwide, including 381 in the United Kingdom.  It has 92 restaurants scattered within the northeastern United States including Boston, Chicago, New York, Philadelphia and Washington. The company had fiscal 2017 sales of $1.17 billion and according to Johnson is positioned for growth.

JAB grocerant niche has become clear to all retail players as they also have controlling interest in global coffee manufacturer Jacobs Douwe Egberts; Peet’s Coffee & Tea; Caribou Coffee Co.; Einstein Noah Restaurant Group, Inc., and Espresso House, the largest branded coffee shop chain in Scandinavia.

The Grocerant niche is filled with Ready-2-Eat and Heat-N-Eat fresh prepared food for immediate consumption most of with is hand held and Jab Holding Co team has a record of innovation, consolidation, and marketing skill set to not only drive growth but incremental top line sales and bottom line profits.

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

Domino’s Success Branded Invitations

Success does leave clues and Domino’s ability to extend the brand via an consumer focused interactive participatory invitation is a success clue everyone should make note of according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

When Domino’s reached out to customers inviting them to submit their own recommendations for Domino’s Hotspot delivery locations across the U.S. food marketers around the country took notice. 

While more than 150,000 Domino’s Hotspots were launched in April, giving customers the option to receive deliveries at locations without traditional addresses.  New-nontraditional points of fresh food distribution the ilk of dog parks, beaches, and sports fields. That was a nod to Millennials seeking food discovery.  With this new invitation Domino’s will add even more local delivery spots based on customers’ feedback at dominos.com/suggestahotspot.

Dennis Maloney, Domino’s chief digital officer stated “We heard from customers about places in their communities that would make perfect Domino’s Hotspot locations,”.. “We’re excited to now have a system for customers to share those locations with us, making our easy-to-use Domino’s Hotspots even more relevant to our local neighborhoods.”

Here is how it works customers visit dominos.com/suggestahotspot, they can identify a new location on the delivery map for their nearest store and then mark it as a potential Domino’s Hotspot for the local franchisee to review. Once approved, customers will receive an email letting them know the location is ready to accept deliveries and the Domino’s Hotspot will appear on the map for customers to select.

So just what is your New Electricity?  How are you engaging 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

What’s for Dinner Not Cooking at Home

What’s for dinner?  Just like the old song says ‘things they are A-changin’ Well if your cooking for an at home family meal for two, three, or four, family members, chances are very good your buying several Ready-2-Eat or Heat-N-Eat fresh prepared meal components according to Steven Johnson Grocerant Guru® at Tacoma WA based Foodservice Solutions®.   

Regular readers of this blog know that grocery stores, convenience stores, and restaurants are all bundling fresh prepared meal components for the home cook.  The home cook is responding buying individualized components making meal assembly of fresh prepared meal components the replacement for cooking from scratch.

Restaurants, Service Deli, and C-store foodservice aided with branded and private label food manufactures products are all vying for your dinner table. Ready-2-eat and heat-N-eat foods from Swiss steak, Meatloaf, Baked Salmon, Rotisserie Chicken, Pizza and Lasagna fresh prepared, portioned and portable in portions for 1,2, or 5 are all available at most foodservice retail location.

Most exciting is the opportunity for new start-up’s and regional manufactures to produce sustainable business built on local, fresh and unique flavor profiles.  Legacy national brand manufactures are experiencing an increase in repositioning, consolidation and acquisition activities.  Regional start-ups are thriving supplying local restaurants, C-stores and grocery store delis.

Consumer are responding buying meal components in new food channels, experiencing new flavor profiles all the while individualizing the family meal.  The foodservice industry is evolving with the consumer.  Those companies looking for opportunity for growth times have never been better. The consumer is dynamic not static are you keeping pace?

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.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche visit:

www.Linkedin.com/in/grocerant  or www.twitter.com/grocerant

Food Delivery a Foodservice Cultural Shift to Build Sales On

American consumers are migrating from Eating-In to Eating-Out While Eating-In according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The undercurrents of this sea change in consumers path to purchase was identified, quantified, and qualified by Johnson in Foodservice Solutions® white paper ‘The 65 Inch HDTV Syndrome’

Today 86% of consumers are using off-premise services at least monthly that includes:

1.       78% obtain fresh prepared food from a Drive Thru

2.       75% obtain fresh prepared food as Carry-out or Takeout

3.       64% obtain fresh prepared food from Delivery

According to Melissa Wilson, principal with Technomic “Food delivery, in particular, is projected to grow in the double digits12% per year over the next five years”, In fact year over year food delivery sales are up a staggering 28%. 

Regular readers of this blog know that grocery stores, convenience stores, restaurants, and new non-traditional foodservice outlets are all delivering fresh prepared food. As the lines between food sectors continues to blur so does brand messaging within takeout, drive-thru, and delivery ordering according to Johnson.

Generational shifts are a major contributor to consumers’ growing desire for delivery. By 2026, 80% of millennials will be parents, said Wilson. Combine that, she said, with nearly half of consumers preferring to eat at home. The result is incremental sales growth for operators who can provide the optimal food delivery experience.

One brand doing a particularly good job is Red Robin going where other dare not.  However Red Robin is finding that consumers of all ages are now more open to fresh food delivery and non-traditional branded locations.

Success does leave clues 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