McDonald’s Looking a Customer Ahead and Sharing some Success Clues

 

Success does leave clues and McDonald’s has picked up a lot of clues over the years and according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® from time to time they share some of the clues will all of us.  When they do it’s important that you take note of what they are saying.   This is one of those times.

Fast-food behemoth McDonald's is making a strategic shift towards digital marketing, with plans to invest hundreds of millions of dollars in digital innovation. This includes new ordering channels, personalization, and loyalty programs. The move underscores the growing importance of digital marketing in the food industry, particularly for chain restaurants. 

1.   McDonald's is creating a digital marketing fund in the U.S., which will account for 1.2% of franchisees' digital revenues starting in 2025. This fund will be financed through existing marketing contributions from franchisees. 

2.  The company anticipates that this reallocation of contributions will enhance a typical store's cash flow by approximately $2,600 per year. 

3.  The strategy involves diverting funds from lower ROI marketing initiatives to digital marketing. The specifics of these shifts will be determined in collaboration with franchisees. 

4.  McDonald's Global Chief Marketing Officer, Morgan Flatley, stated that the company has already started to balance traditional mass media spend with investment in digital marketing capabilities. 

5. McDonald's digital sales have been instrumental in driving overall sales growth in recent quarters. The company's loyalty program has amassed 150 million active users globally and 34 million in the U.S., surpassing Starbucks. 

6.   Future investments will focus on new ordering channels, including web-based ordering without app downloads, personalized order recommendations, and next-generation loyalty features. 

7.  In 2025, McDonald's will shift funding for its digital marketing tools, such as its mobile app and customer relationship management system, into its digital marketing fund. This approach will initially be adopted in five global markets: the U.S., Australia, Canada, Germany, and the U.K. 

8.  Tariq Hassan, McDonald's U.S. Chief Marketing and Customer Experience Officer, and Whitney McGinnis, U.S. Chief Information Officer, emphasized the need to modernize the company's marketing model to personalize customer interactions. 

9. They also stated that the company will collaborate with franchisee leadership to incorporate digital marketing costs into the marketing budget and align this change with McDonald's 2025 plans in the U.S. 

10.  They believe this funding model will enhance understanding of consumer behavior, optimize customer lifetime value, and maintain systems for data management, network security, and data storage. 

This shift towards digital marketing underscores the critical role of digital innovation in the food industry. It highlights the need for chain restaurants to allocate separate funds and campaigns for digital marketing, ensuring they stay competitive in the evolving market landscape. 

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Domino’s Garnering the Attention of Gen Z and Millennials with the power of "dough-nation".

 

Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, is thrilled to share this news about Domino's, a restaurant company that's setting a new standard in corporate philanthropy. Domino’s has pledged to raise a staggering $300 million by 2034 for St. Jude Children’s Research Hospital, marking the largest financial commitment ever made to a children's hospital by a corporation or private entity. 

This announcement, made by Domino's CEO Russell Weiner at the company's 2024 Worldwide Rally in Las Vegas, is a testament to the company's dedication to making a difference. This commitment will ensure that families of St. Jude patients can focus on their child's recovery, without worrying about bills for treatment, travel, housing, or food. 

Domino's "Hungry for More" growth strategy is not just about expanding their business, but also about creating more opportunities for their customers to contribute to St. Jude. Since 2004, Domino's has enabled millions of customers to donate small amounts, with this new pledge, Domino’s aims to raise the total amount raise to 300 million by 2034.  

This approach aligns with the philosophy of St. Jude founder Danny Thomas, who believed in the power of many people each giving a little. Dominos embodies this spirit through their participation in the annual St. Jude Thanks and Giving® campaign and by offering customers the option to round up their change to support St. Jude's mission. 

Richard C. Shadyac Jr., president and CEO of ALSAC, the fundraising and awareness organization for St. Jude, expressed immense gratitude for Domino's historic pledge. This commitment is a significant step in Domino's longstanding partnership with St. Jude, helping to advance research and treatment for childhood cancer and other life-threatening diseases. 

This pledge follows the opening of The Domino's Village in September 2023, a six-story housing facility for patients and their families, funded by Domino's as part of a 10-year, $100 million commitment to St. Jude announced in 2020. 

Gen Z and Millennials, known for their commitment to social causes, are likely to appreciate Domino's efforts. Companies that are doing good things, like Domino's, are attracting these younger generations who value corporate social responsibility. Domino's is not just delivering pizzas; they're delivering hope and making a real difference in the world. This is a company that truly understands the power of "dough-nation". 

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

Buffalo Wild Wing’s Success Targets the Grocerant Niche

 

There are at several reasons that Steven Johnosn, the Grocerant Guru® at Tacoma, WA Based Foodservice Solutions® thinks that Buffalo Wild Wings' latest venture, Buffalo Wild Wings GO (BWW GO) will be a big hit.  This innovative concept is a game-changer in the Grocerant Niche for five key reasons: 

1.                   Smaller Footprint, Bigger Impact: BWW GO's compact design allows it to fit into bustling areas like airports, malls, and college campuses. This strategic placement brings the brand closer to its fans, increasing accessibility and visibility. 

2.                   Cost Efficiency: The smaller size of BWW GO locations results in reduced startup costs and lower operational expenses. This means a quicker return on investment for franchisees, making it an attractive business opportunity. 

3.                   Meeting Consumer Demand: With the rise of on-the-go dining, BWW GO is perfectly positioned to cater to this trend. Wings, a fan favorite, are now available at the customers' convenience, satisfying their cravings anytime, anywhere. 

4.                   Leveraging Brand Strength: Buffalo Wild Wings already has a strong and loyal fan base. By launching BWW GO under this established brand, Inspire Brands is capitalizing on existing brand equity to drive growth. 

5.                   Digital-First Approach: BWW GO is designed with a focus on the thriving take-out and delivery side of the business. This digital-first concept aligns with modern consumer preferences, further enhancing its appeal. 

I want you to think about this, BWW GO is not just a new restaurant concept; it's a strategic move by Buffalo Wild Wings and Inspire Brands to embrace the Grocerant Niche. It's a testament to their commitment to innovation, customer satisfaction, and growth. For more information on this exciting franchise opportunity, please visit the BWW GO Franchising website. 

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 than tomorrow?  Visit GrocerantGuru.com 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.

ALDI's Consumer Focus: A Game Changer in the Grocery Industry

 

ALDI, a renowned global grocery brand, has been making waves in the grocery industry with its aggressive expansion plans has left success clues for all retailers to follow. The company's unique marketing strategy and relentless focus on customer value have been instrumental in its rise to prominence. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® delves into why ALDI's consumer focus is garnering sales, empowering it to add 800 new stores, and why legacy grocery stores should be concerned. That said, Johnson notes consumers love the prices and discovery aspect of ALDI.

ALDI's Consumer Focus 

ALDI's marketing strategy is centered around its customers. The company strategically targets the middle-income market segment by offering low prices and no-frills discounts. By consistently providing high-quality products at affordable prices, ALDI has gained a loyal customer base that appreciates the value it offers. 

ALDI's eCommerce page serves as a key driver of its success, offering a seamless shopping experience to customers. The company prioritizes customer engagement, partnering with delivery services and utilizing engaging technology tools for a superior shopping experience. 

Garnering Sales 

ALDI's consumer focus has resulted in significant sales growth. In 2021, ALDI Group's net sales amounted to just under 134 billion U.S. dollars, a 15.3 percent growth compared to the previous year. This was the highest increase observed in the reported period, due to the spike in low-cost grocery demand during the COVID-19 pandemic. In 2022, the discount supermarket chain Aldi reported U.S. sales growth of 8.1 percent over the previous year. 

Expansion Plans 

ALDI's success has empowered it to plan an aggressive expansion. The company aims to open 800 new stores in the U.S. over the next five years. The expansion will focus on the Northeast, Midwest, Western U.S., and Southern California, with a debut in Las Vegas. ALDI plans to open nearly 300 stores in both markets by the end of 2028. 

Impact on Legacy Grocery Stores 

ALDI's rapid expansion and consumer-focused approach pose a significant threat to legacy grocery stores. ALDI's low-cost strategy is more appealing than ever to consumers, making it a formidable competitor. ALDI was the fastest-growing grocery chain in the United States in 2021 in terms of both the number of new stores it opened and the square footage those locations took up. This growth has made it the nation’s third-largest grocer by store count, with only Kroger and Walmart ahead. Driving Walmart from it position as ‘low cost leader’ to ‘stuck in the middle’ and Kroger forced to merge with Albertsons to retail its national relevance according to Johnson.

Think About This

ALDI's consumer focus and aggressive expansion plans are reshaping the grocery industry. Its ability to provide high-quality products at affordable prices has garnered significant sales and enabled it to plan the addition of 800 new stores. As ALDI continues to grow, legacy grocery stores must adapt to stay competitive in this increasingly challenging market. 

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Food Sales Restaurants Vs Convenience Stores Who is Winning

 

The lines between meals and snacks are disappearing, replaced by a wave of "mini meals" that cater to our busy, time-crunched lives. According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, convenience stores are perfectly positioned to win in the evolving retail food prepared food sales landscape, but they need to understand the key players: Gen Z and the “mini meal” revolution.

Pandemic Snacking Becomes a Permanent Trend: Snacking isn't just a pre-dinner treat anymore. It's become the "fourth daypart," fueled by convenience, a desire for comfort, and the need for health benefits. Think protein-packed snacks, energy-boosting options, and even flavor and texture add-ons to traditional meals.

Convenience is King (and Queen): With 80% of Americans feeling time-pressed, quick, easy, and satisfying options are crucial. This opens doors for convenience stores to provide the perfect in-between bites, especially for younger generations like Millennials and Gen Z.

Gen Z Holds the Snacking Power: This generation, with its $360 billion spending power, is a snacking powerhouse. They frequent convenience stores more than any other age group and are actively seeking new flavors and products, making them prime targets for CPG brands launching innovative snacks.

Who Wins? Convenience Stores with the Right Offerings: By understanding the evolving snacking trends and the influence of Gen Z, convenience stores can tailor their offerings perfectly. This means having a diverse range of products that are:

·         Convenient: Grab-and-go options that fit seamlessly into busy schedules.

·         Flavorful: Exciting taste profiles that keep customers coming back for more.

·         Value-driven: Affordable choices, especially relevant in today's inflationary climate.

Convenience stores that embrace these trends are well-positioned to become the go-to destination for the ever-growing mini-meal phenomenon. Remember, snacking isn't just a quick bite anymore; it's a fundamental shift in how we eat, and convenience stores have the potential to be the ultimate winners in this delicious revolution.

Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com 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.

Why Mobile Ordering Wins: Ditching the Kiosk for a Smoother Experience

 

Once again, the Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has his view on the value that speed of service has in the minds-eye of the consumer. While self-serve kiosks have become increasingly common, mobile and online ordering platforms offer a range of advantages that make them the preferred choice for many customers. Here's why:

1.       Convenience at Your Fingertips: Mobile ordering allows you to place orders from anywhere, at any time, using your own device. No need to navigate a kiosk or wait in line – simply browse the menu and submit your order at your own pace.

2.       Bye-Bye Lines: Kiosks can still lead to queues, especially during peak hours. Mobile ordering lets you bypass these lines entirely, saving you valuable time and frustration.

3.       Accuracy You Can Trust: With mobile ordering, you can meticulously review your selections and make any necessary changes before submitting your order. This reduces the risk of errors and ensures you get exactly what you want.

4.       Personalized Perks: Mobile platforms can track your preferences and purchase history, allowing businesses to tailor their marketing efforts and offer you special promotions that align with your tastes.

5.       Boosting Efficiency: Mobile ordering streamlines operations by minimizing the need for manual order-taking and payment processing. This frees up staff to focus on other tasks, improving overall efficiency.

6.       Flexibility on the Go: Mobile ordering platforms are readily accessible from any device, making it easy to place orders from anywhere, at any time, whether you're at home, at work, or on the go.

7.       Cashless Convenience: Both kiosks and mobile ordering offer the ease of cashless transactions. However, mobile ordering takes it a step further, allowing you to pay securely from anywhere, without needing to be physically present at the kiosk.

8.       The Post-Pandemic Shift: The COVID-19 pandemic has significantly accelerated the preference for contactless ordering methods. Mobile ordering provides a safe and convenient alternative to traditional in-person interactions.

Consider this, while self-serve kiosks offer a degree of convenience, mobile and online ordering platforms provide a superior customer experience thanks to their enhanced flexibility, accuracy, personalized features, and overall efficiency. So, the next time you're looking to place an order, ditch the kiosk and embrace the many benefits of mobile ordering.

 

O’ yes there is more as fast-casual and fast-food restaurants are increasingly replacing human cashiers with self-service kiosks. While this may seem like a modern convenience, a recent Temple University study reveals a downside: kiosk users experience ordering anxiety, especially when a line forms behind them. This anxiety leads customers to order less food, skip trying new menu items, and potentially miss out on the full restaurant experience.

Here's why takeout and delivery might be a better option in such situations:

·         Reduced Pressure: No rushing or feeling responsible for the line. You can browse the menu at your own pace, consider new items, and make a well-informed decision without the pressure of people waiting behind you.

·         More Adventurous Choices: Takeout menus are readily available online, allowing you to explore the entire menu from the comfort of your home and try something new without the anxiety of holding up the line.

·         Greater Order Accuracy: When ordering takeout or delivery, you have more time to double-check your selections, reducing the chances of mistakes that might occur when rushing at a kiosk.

While self-service kiosks offer convenience, they come with hidden anxieties that can negatively impact the customer experience. So next time you're faced with a long line at a kiosk, consider takeout or delivery for a more relaxed and potentially more adventurous dining experience.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter