Foodservice Disruption, Evolution, Solution a path Forward

 

Stuck at home, consumers once again cling to their comfort zone and the flat screen TV. Once again “ The 65 Inch HDTV Syndrome continues to disrupt retail foodservice driving the adoption of grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food.

Once again, this year, Foodservice Solutions® recent Grocerant ScoreCards continue to indicate that at the intersection of the consumer, technology, and retail food sales we find the grocerant niche creating and expanding points of food distribution up some 19.8% with 84.3% of existing points of distribution recording double digit year over year increases, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

It’s at that intersection that Foodservice Solutions® Grocerant Guru® identified one universal commonality driving consumers buying pattern changes with the latest Grocerant ScoreCard finding that 83.2% of meals assembles, prepared, and service at home include at least one Ready-2-Eat or Heat-N-Eat fresh food meal component. Johnson calls it and extension of the “The 65 Inch HDTV Syndrome he identified, quantified, and qualified back in the day.

Battle for Share of Stomach

The grocerant niche is the result of the blurring line between restaurants, grocery stores, convenience stores, and drug stores all selling fresh prepared, portable, convenient meal solutions.  Targeted at the time-starved consumer with Ready-2-Eat or Heat-N-Eat fresh prepared food components that are perceived “better for you”, and portioned for one or two. Consumers like the Convenient Meal Participation, Differentiation, Individualization / Family Customization that these retailers offer.

Restaurateurs need to be particularly mindful of developments within grocerant niche for they are driving the change within the price, value, service equilibrium in retail foodservice.

It is at the intersection of the consumer, technology and The FIVE P’s of Food Marketing: Product, Packaging, Placement, Portability, and Price that retail food sales competition is expanding.

So, get this back in the day GrubHub the nation’s number one online and mobile food ordering service data reveled that pre-game orders spiked more than 35 % for the first four weeks of the 2012 professional football season when compared to the same timeframe during the 2011 season and sales continue to climb.     “When it comes to watching football, the best seat in the house really is at home,” stated Susanne Dawursk, GrubHub’s brand marketing director. Well, that is what we say again this year. Here is the point the grocerant niche is a trend that is not going away.  It has been here a long time and is building a core base that has elevated fresh food delivery, takeout to a preferred platform of choice.

Fresh prepared Ready-2-Eat and Heat-N-Eat food in non-traditional outlets poses an ever-increasing threat to restaurant growth. Want to know how to best address the 67-inch HDTV Syndrome? 

For international corporate 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 www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869

At the intersection of Amazon Fresh and Dollar Stores Consumers Reap the Rewards

 

Fresh food fast and food for less is the top of mind when it comes to buying food for home consumption. There are two companies that are driving down the cost of fresh food and saving customers both time and money while opening new stores, lots of them. Those two companies are Amazon Fresh, and Dollar General who is planning on to open 1,050 stores, remodel 1,750 stores for fresh food in 2021. 

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that the number one threat to retail grocery stores top line sales and bottom-line profits moving forward is not Aldi, Lidl, WinCo or Amazon Fresh it is Dollar General.

Recently Dollar General announced that they are planning significant store expansion in 2021 as it continues to roll out its DG Fresh food offerings as well as other merchandise initiatives.

Jeff Owen, Dollar General's chief operating officer stated, "Our portfolio of high-return real estate projects continues to be a top priority for capital allocation as we look to continue delivering long-term shareholder value. With a robust pipeline in place and plans to execute an average of nearly eight real estate projects per day in fiscal year 2021." The expansion push also includes increased focus on food.

So, during the first three quarters of 2020, Dollar General added approximately 49,000 cooler doors across its store base. It expects to install more than 60,000 cooler doors by the end of the year, most of which will be in its higher capacity coolers.

Battle for Share of Stomach

Vasos continued "We plan and continue to believe DG Fresh could provide a potential path forward to expanding our produce offering to even more stores in the future," .. "In total, we were self-distributing to more than 13,000 stores from eight DG Fresh facilities at the end of Q3. We expect to capture benefits from this initiative in more than 14,000 stores from 10 facilities by the end of this year, and are well on track to complete our initial rollout across the chain in 2021."

The simple fact is the Dollar store sector simply walked away with the center of the store legacy CPG profits and now they are taking aim at fresh food, fruit, bread, mild, eggs, meat, everyone can see the customer migration continuing for Dollar General except for legacy grocery stores.  I guess they will just sit back and continue doing what they have always done and doing it in the same way.  What are you doing to grow sales?

Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that 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.

Modern Market Eatery a Brand Marketers Dream Company

 

Driving brand messaging with a low-cost growth platform, simply leaves more money on the table for brand marketing and that will contribute too top-of-mind awareness, garner migration, drive both sales and profits according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

Recently, Modern Market Eatery opened its first ever ghost kitchen in Tempe, Arizona. This concept is serving almost the entire Modern Market menu, but by delivery only. The brand already has a presence in the metro-Phoenix area with three locations throughout. So, the cost for new locations has gone down, while brand messaging, has gone up, helping unit sales at all units.

This is important, third-party delivery services were already a growing trend, they were deemed essential amid the pandemic to keep many restaurants afloat. Modern Market saw an opportunity to expand its services with these new concepts to better serve the community and enhance the brand. Think of third-party delivery services as a new marketing platform.  A highway to incremental sales success.  If you are not on the new highway.  Your customers will simply drive by.

Edifying its brand messaging, Modern Market introduced its brand-new concept, Honest Pizza – which opened Monday out of the brand’s Broomfield, Colorado, location. This delivery only concept comes from the chef’s behind Modern Market and was inspired by the hole in the delivery market for high-quality, chef-inspired pizzas. This menu is completely different and offers unique handmade pizzas, I’ve included a few below:

New Mexico: Green chili, organic mozzarella, fresh jalapeño, Berkshire pulled pork, cilantro, cotija, and lime

When Pigs Fly: House red sauce, organic mozzarella, Creminelli uncured pepperoni, Polidori Italian sausage, nitrate free bacon, and Mike’s hot honey

Backyard BBQ Sweet Potato: Lillie’s smoky BBQ sauce, organic mozzarella, roasted corn, sweet potato, red onion, fresh jalapeño, smoky crema

So, how is your brand expanding? How fresh is your brand messaging? Mix & match meal component bunding is a key driver of grocerant niche success.  How can you leverage your location, menu and messaging to drive growth?

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

Steak ‘n Shake Renews Brand Relevance with Apparel Line

 

Chain restaurant brand messaging can get worn out. While consumers are longing the day that their daily routine will return, subconsciously they want more comfort, more security in their own well-being, and they want their favorite brands of yesterday and today to move forward with them according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Extending a brand message with comfort (one foot in the past) and hope (one foot in the future), Steak ‘n Shake is extending a branded invitation with relevance, a new line of clothing and collectables.  Customers can choose a gift that family and friends will really love with Steak ‘n Shake merchandise and apparel and receive free delivery from Friday, December 11 – Thursday, December 31.

So, Steak ‘n Shake is offering a wide selection of clothing for men, women, and children, along with home accessories, and vintage-inspired collectables. Choose the perfect gift for the die-hard Steak ‘n Shake fan on your list, from stocking stuffers like the plush Steak ‘n Shake mascot “Goldie,” to nostalgic wall art, and cozy fleece blankets.

And for those that want to bring the Steak ‘n Shake experience home this holiday season, enjoy a 12-pack of our world-famous chili. Not 100% sure what they’ll like? You can’t go wrong with a Steak ‘n Shake gift card.

Check out Steak ‘n Shake’s online store by visiting: http://www.shopsteaknshake.com/  What are you offering the consumers at the intersection where yesterday meets tomorrow?

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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 one of the following links: Facebook,  LinkedIn, or Twitter

Walmart: Customers are the Last Mile Solution

Contactless ordering and at-store pick-up has empowered Walmart customers to be the ‘last mile solution’ at Walmart according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

That said Walmart has a long way to go become top-of-mind when it comes to delivery of convenience items according to a recent study released by CS News that found:

THE MOST-UTILIZED DELIVERY SERVICES BY GENERATION ARE:

1.       GENERATION Z (AGED 18-21) DoorDash

2.       MILLENNIALS (AGED 22-37) Local chain restaurant

3.       GENERATION X (AGED 38-53) Amazon/ Amazon Fresh

4.       BABY BOOMERS (AGED 54-72) Amazon/ Amazon Fresh

So, maybe convenience items and restaurant meals are top of mind as last mile solutions for Walmart customers, but Walmart gets lots of credit at looking at the entire supply chain. Looking at the middle of the supply chain and technology Walmart is expanding the current trial of autonomous box trucks for "middle mile" delivery.

So, in 2019, Walmart began testing use of the trucks for delivery between a fulfillment center and a Neighborhood Market in Bentonville. The trucks were operated in autonomous mode but had a safety driver present. Now, confident in results from the pilot—the trucks have logged more than 70,000 miles along a 2-mile test route, the company said—Walmart is giving the OK for the box trucks to run driverless in Bentonville starting in 2021. Wow, that could be a huge savings for Walmart.

Now, think of how your company can reduce the cost within your supply chain.  EV’s (electric vehicles) will soon be allowed in urban centers as driverless taxi’s. Autonomous EV’s can provide a platform to reduce cost while you improve service according to Johnson. One of the big reasons is true autonomous EV’s have 40% fewer parts (cost less, repair less) than a standard vehicle and with each downloaded upgrade they will also become ‘smarter’.

Walmart is not just looking at the ‘middle mile’ they will begin a trial of the autonomous trucks along a 20-mile route between New Orleans and Metairie, La., early next year. So, that test will have trucks running between a Walmart Supercenter and a designated alternative pickup point for customer orders. As with the initial trial run in Bentonville, the Louisiana test will have a safety driver in place in the vehicles. Palo Alto, Calif.-based software company Gatik is providing the tech behind the vehicles. 

Most of you know that ninety percent of Americans live within 10 miles of a Walmart, but consider this customers who may seek a more-convenient option for picking up their online orders—on the way home from work, for example—alternative pickup locations could provide additional flexibility. Just last week, Walmart noted that it is expanding delivery to neighborhood bodegas in Mexico, and offsite pickup of grocery orders is an established phenomenon for other global retailers. Think about a tailgate party and a stadium pick-up location, beer anyone.

Walmart did not a word of caution saying, “driverless delivery can come with a host of logistical, regulatory and financial headaches, making it a tough nut to crack. Earlier in December, Uber announced it was selling its autonomous driving unit.” That said just remember consumers are dynamic not static and brands need to be as well.

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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 

Fuzzy’s Taco Growth Focuses on Grocerant Niche

 

Grocerant niche meals and meal components had driven top line sales and bottom-line profits within every sector of retail foodservice for the past 8 years.  The COVID-19 pandemic has favored foodservice retailers that were early adopters according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared meals and meal components have been the lifeline for restaurants, the attraction at C-stores, been elevated at grocery stores, and driving incremental sales at dollar stores according to Johnson.

Fuzzy’s Taco Shop has introduced grocerant niche meal planning solutions for this holiday season with their Baja-inspired family meals, perfect for feeding the entire family or for gatherings with close friends. The taco shop’s Taco Family Meals and Fajita Family Meals allow families to spend less time in the kitchen and more time enjoying each other’s company around the dinner table.

Both packages are available in two sizes: regular (serves 4-6) and large (serves 6-8) and can be ordered online at www.FuzzysTacoShop.com or by calling your local shop to place your order. The Taco Family Meal is available for $35 for regular size, and $50 for large, and includes:

·         Choice of two meats – shredded chicken, seasoned ground beef, spicy pork or grilled veggies (fajita beef, fajita chicken, or shredded brisket are available for an additional charge)

·         Choice of two sides – borracho beans, black beans, refried beans, cilantro-lime rice, Mix-Mex rice

·         Chips, salsa and Fuzzy’s famous queso

·         All fixings – tortillas, lettuce, tomatoes, shredded cheese, cilantro, feta, garlic sauce, Fuzzy’s Taco Shop Butt Burnin’ Hot Sauce

The Fajita Family Meal is available for $55 for regular size, and $70 for large, and includes:

·         Choice of meat with veggies – fajita beef, fajita chicken, or a combination of both

·         Choice of two sides - borracho beans, black beans, refried beans, cilantro-lime rice, Mix-Mex rice

·         All fixings – tortillas, guacamole, lettuce, pico de gallo, shredded cheese, sour cream, Fuzzy’s Taco Shop Butt Burnin’ Hot Sauce

·         Sopapilla bites and icing

Meal bundling solutions that can be mixed and matched by sides, size, and sizzle sell according to Johnson.  Grocerant niche meal bundling is a customer facing meal solution hitting most consumer touchpoints within the foodservice sector today according to Johnson.

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

At Wawa Augmented Reality Technology is Relevant

 

When asked what convenience store chain with over 500 stores has the highest sales volume per-unit the answer always comes back to Wawa according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  It’s been widely reported that Wawa’s unit sales average over $ 5.5 Million per year. 

Success does leave clues and at Wawa there is a new augmented reality (AR) game as an extra feature to its line of Kids Meals, which debuted in August which is customer focused, multigenerational, interactive, and participatory according to Johnson.

Wawa partnered with Pennsylvania-based developer Neo-Pangea to create a free and interactive game, "Wally's Adventure Game," starring Wawa mascot Wally Goose and designed to entertain beyond mealtime. I know, we said multigenerational it’s the parents that will help the kids get informed of the game and connected to it.  That garners incremental generational buy-in.

So, Wawa is the first c-store operator with an Augmented Reality Kids Meal game in its market, according to the company. Johnson stated that digital technology is driving rapid success in every sector of business today. Just look at the pace in which Pfizer pharmaceutical was able to develop a vaccine for COVID-19.  Parents today want their children to embrace technology earlier than parents even one generation before them.  

In the new Wawa Kids AR game, players can flap Wally's wings and move left and right to fly around trees, over fences and beneath storm clouds on a quest through the forest to collect as many Kids Meal Boxes as possible. It is accessible through a QR code on the Kids Meal boxes. Players can scan the QR code or visit www.wawakidsmeals.com/game on a mobile device to play, with no downloads required.

Chief Product Marketing Officer Mike Sherlock stated, "In addition to providing wholesome foods, it's our hope that creating such a fun AR game gives families a reason to laugh and play together during meals," said.

So, the Wawa Kids Meals offers a choice of entrée, including Junior hoagies with turkey, ham, roast beef or cheese; small mac & cheese; cheese quesadilla; chicken strips; small meatballs; and small chicken noodle soup, accompanied by one side of apple slices, yogurt (outside of Florida), mozzarella string cheese, and a one-ounce bag of chips or chocolate chip cookie, plus a choice of beverage, including water, milk or chocolate milk.

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.