Tuesday, June 25, 2024

EG America Embraces the Grocerant Niche with $5 Meal Deals

 


Yes, the Grocerant Guru® has long championed the appeal of mix-and-match meal component bundling, a hallmark of the grocerant niche. This summer, the team at Tacoma, WA based Foodservice Solutions® believe that EG America is setting a new standard by leveraging this approach to captivate both new and returning customers with their $5 meal deals. This strategy not only caters to the on-the-go lifestyle of summer travelers but also reinforces the value-driven dining experience that today's consumers crave.


Customization at the Core

EG America's $5 meal deal epitomizes the essence of customizable convenience. Which started June 19 and running through September 3, customers can create their perfect meal combination from the following options:

·         Main Course: Choice of any two roller grill items or two cheese or pepperoni pizza slices.

·         Beverage: Choice of a 1-liter bottle of Pepsi, Mountain Dew, Aquafina, or Brisk.

·         Snack: Choice of Lay's, Miss Vickie's, Ruffles, or Sun Chips in 1.375-ounce or 1.5-ounce bags.

By allowing customers to mix and match these components, EG America taps into the grocerant trend of personalized dining experiences, making meal times not just convenient but also tailored to individual tastes and preferences. Brian Ferguson, EG America's chief marketing officer, highlights this value proposition, stating, "Our new $5 summer meal deals offer our guests a quick meal on the go, at a great price."


More Than Just a Meal

In addition to the $5 meal deal, EG America is enticing customers with other appealing offers. Their doughnut combo, available from June 19 through September 4, includes two doughnuts and a large hot or iced coffee for just $4. As Michael Limoges, senior vice president of store operations, notes, "Few food items go better with coffee than a doughnut, and with this deal, we're offering our guests both."

EG America's focus on enhancing the coffee experience is another strategic move, emphasizing their reputation for quality beverages. The introduction of their XL cup size ensures that customers can enjoy more of their favorite coffee, adding both convenience and value to their daily routines.


A Commitment to Convenience and Value

With over 1,600 retail locations under various banners including Cumberland Farms, Kwik Shop, and Turkey Hill, EG America is well-positioned to deliver these value-driven deals across the country. The company’s commitment to providing quick, affordable, and customizable meal options aligns perfectly with the grocerant model, which prioritizes convenience, quality, and personalization.

This summer, as travelers hit the road, EG America's innovative meal deals offer them a refreshing alternative to traditional fast-food options. By embracing mix-and-match meal component bundling, EG America not only attracts new customers but also encourages repeat visits, fostering loyalty through value and variety.

In the ever-evolving landscape of convenience retail, EG America's $5 meal deals are a testament to the power of the grocerant niche. They demonstrate that by prioritizing customer preferences and offering customizable, affordable meal options, convenience stores can significantly enhance their appeal and drive customer frequency. As the Grocerant Guru®, I applaud EG America for their forward-thinking approach and look forward to seeing more retailers adopt similar strategies.

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter



Monday, June 24, 2024

Five Success Clues: Why McDonald's $5 Meals Will Drive Customer Frequency

 


If success does leave clues and it does according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Then let’s delve into the competitive battleground of quick-service restaurants (QSRs), focusing on McDonald's strategic move to regain their footing among value-conscious consumers. With McDonald's confirming their much-anticipated $5 Meal Deal set to launch on June 25, it's time to explore how this initiative will drive customer frequency and counter the migration to competitors like Wendy's. Here are five reasons why McDonald's $5 Meals are poised to make a significant impact.

1. Affordability and Value Perception

In the words of McDonald's USA President Joe Erlinger, "Value has always been part of our DNA." This $5 Meal Deal exemplifies that ethos by offering a McDouble or McChicken sandwich, small fries, a four-piece Chicken McNuggets, and a small soft drink—all for just $5. At a time when economic pressures are causing consumers to scrutinize every dollar, such a deal reaffirms McDonald's commitment to affordability. This perception of value is critical in attracting lower-income consumers, who have been straying to competitors like Wendy's, which has its own value-driven promotions.


2. Comprehensive Offerings Drive Traffic

The $5 Meal Deal isn't McDonald's only tactic to lure back customers. They are complementing this initiative with "Free Fries Fridays," offering a free medium fry with any $1 purchase through their app, and a special promotion on National French Fry Day with free fries of any size. These complementary promotions are designed to increase app engagement and drive more frequent visits, both crucial for maintaining customer loyalty and increasing transaction volume.

3. Addressing Price Sensitivity and Misinformation

In response to criticisms about rising prices, McDonald's is actively correcting misinformation and highlighting their efforts to keep menu items affordable. According to Erlinger, while the price of a Big Mac has increased by 21% since 2019, this is significantly lower than the 100% increase alleged by some reports. By openly communicating these facts, McDonald's is working to rebuild trust with their customer base, particularly those sensitive to price changes. This transparency is likely to resonate well with consumers who have felt priced out of the McDonald's experience.

4. Leveraging Technology for Localized Promotions

The emphasis on McDonald's app for accessing deals like the $5 Meal and "Free Fries Fridays" illustrates the company's strategic use of technology to engage customers. Localized promotions accessible through the app, such as buy-one-get-one deals and discounts on beverages, cater to regional preferences and needs. For instance, in Savannah, Georgia, a 25% off any purchase of $10 or more deal is available. These localized offers not only enhance customer engagement but also provide a personalized experience that can drive repeat visits.


5. Strategic Positioning Against Competitors

The introduction of the $5 Meal Deal is a direct response to the competitive landscape where value meals are becoming a battleground. Wendy's is offering a free small Frosty with the purchase of a Biggie Bag, and Burger King is promoting $5 Duos and $2.99 wraps. By entering this pricing battle, McDonald's ensures it remains a top-of-mind option for consumers seeking value. This strategic positioning is essential to retain market share and prevent further customer migration to other QSRs.

Incremental Success Tips from the Grocerant Guru®

1.       Enhance Digital Engagement: McDonald's should continue to innovate their app with gamified rewards and personalized offers to keep customers engaged and returning more frequently.

2.       Expand Localized Promotions: By tailoring deals to specific regions and demographics, McDonald's can better meet the unique needs of different markets, fostering stronger customer loyalty.

3.       Transparency in Communication: Maintaining an open dialogue about pricing strategies and value propositions will help McDonald's build trust and counteract negative perceptions about price increases.


Think about this, McDonald's $5 Meal Deal, coupled with complementary promotions and a strong focus on value, positions the brand to effectively drive customer frequency and win back those who have migrated to competitors. By staying true to their value-driven legacy and leveraging technology for enhanced customer engagement, McDonald's is poised to reclaim its stronghold in the QSR 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. 

Want to Build a Larger 

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PRICE 
Matters 

Sunday, June 23, 2024

Hooters Enters the Grocerant Niche: Better Late Than Never



As the Grocerant Guru®, it's my pleasure to see Hooters make a bold move into the grocerant niche by launching its first line of frozen appetizers and snacks at more than 1,300 Publix Super Markets. The team at Tacoma, WA based Foodservice Solutions® believe that this venture represents a significant step in diversifying their brand presence beyond the traditional sports bar setting. With plans for expansion by the end of the year, Hooters is ready to offer customers a taste of their favorite dishes in the comfort of their homes. However, as with any new venture, there are strategies that can help ensure incremental success in this competitive space.

Hooters' Entry into the Retail Arena

For those who have longed to enjoy Hooters' famous wings without the in-restaurant experience, the new frozen product line is a dream come true. The initial offerings include:

·         BBQ Smoked Wings

·         Dry Rub Smoked Wings

·         Buffalo-Style Boneless Wingz

·         Buffalo-Style Popcorn Chicken

These products are priced between $7.49 and $8.99, making them an attractive alternative to dining out, where similar items can cost significantly more. The convenience of heating these items in home ovens or air fryers allows customers to easily replicate the restaurant experience at home.


Grocerant Guru's Recommendations for Incremental Success

To maximize the potential of this new venture, Hooters should consider the following three strategies:

1.       Leverage Cross-Promotions and Bundling

o    Suggestion: Create exclusive promotional bundles that pair Hooters' frozen products with complementary items, such as dipping sauces, side dishes, or even beverage vouchers. Cross-promotions with popular supermarket items can also drive sales. For example, a "Game Day Bundle" that includes wings, chips, and a beverage could appeal to sports fans.

o    Implementation: Partner with grocery retailers to create end-cap displays that highlight these bundles, making them easy to spot and purchase.

2.       Engage in Digital and Social Media Marketing

o    Suggestion: Utilize social media platforms and digital marketing to build awareness and drive consumer interest. Engaging content such as cooking tips, recipe ideas, and user-generated content can create a community around the product.

o    Implementation: Launch a digital campaign that encourages customers to share their Hooters at-home dining experiences using a specific hashtag. Offer incentives such as discounts or giveaways for the best posts.

3.       Expand Product Line with Seasonal and Limited-Time Offers

o    Suggestion: Introduce seasonal or limited-time products to keep the product line fresh and exciting. Items like holiday-themed appetizers or special edition flavors can generate buzz and attract repeat customers.

o    Implementation: Plan a product release calendar that includes seasonal offerings and align it with major holidays or events. Promote these items heavily through in-store signage, online marketing, and email campaigns.

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The Path Forward

Hooters' entry into the frozen food market is a smart move that aligns with the growing trend of restaurants expanding into retail. By embracing mix-and-match meal component bundling and offering customizable convenience, Hooters can attract a broader customer base and drive incremental sales. The success of similar ventures by other brands, such as Wow Bao and TGI Fridays, demonstrates the potential longevity and profitability of this strategy.

By implementing the Grocerant Guru's recommendations, Hooters can enhance its market presence and ensure sustained success in the grocerant niche. It's an exciting time for the brand, and with careful planning and strategic execution, Hooters is well-positioned to become a household name in frozen appetizers and snacks. Better late than never, indeed!

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869




Saturday, June 22, 2024

Walmart's Strategy to Attract Gen Z Shoppers: Fresh Food and Affordable Fashion



Walmart, the world's largest retailer, is making a bold move to attract the Gen Z demographic. The company is leveraging its affordable fashion line, No Boundaries, to entice this younger generation to not only buy clothes but also fresh food from their stores. According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®Walmart is focused at the intersection of inflation, demographic relevance, choice, and discovery all are important to both Gen Z and Millennials.

The Power of Affordable Fashion 

Walmart has reimagined its legacy young adult fashion brand, No Boundaries, to appeal to Gen Z shoppers. The $2 billion brand promises a modern, relevant, and youthful assortment with new fabrication, shapes, and styles, with most pieces priced under $15. This affordable pricing strategy is a key part of Walmart's plan to attract Gen Z consumers, who are known for their value-driven shopping habits. 

The No Boundaries line, which features 130 pieces that span women’s clothing and intimates, men’s clothing, shoes, and accessories, will launch in stores and on Walmart.com on July 16. About 80% of the assortment will cost less than $15, including many pieces for just $5. 


Linking Fashion to Fresh Food 

Walmart's strategy doesn't stop at affordable fashion. The company aims to leverage the appeal of its clothing line to encourage Gen Z consumers to buy fresh food from their stores.  

Gen Z consumers are known for their preference for fresh and wholesome foods. They are also more likely to buy bulk produce and larger family packs of meat/poultry. By offering affordable fashion and fresh food under one roof, Walmart is positioning itself as a one-stop-shop for Gen Z consumers. 


The Impact of E-commerce 

E-commerce plays a significant role in Walmart's strategy. The company has seen a surge in online grocery sales, holding 48 percent of sales as of June 2021. With Gen Z and Millennials more likely than Baby Boomers to have purchased fewer fresh fruits and vegetables than they otherwise would have, changed the stores they shop at, or bought more products online, Walmart's strong online presence is a crucial factor in attracting these younger consumers. 

Think about this 

Walmart's strategy of linking affordable fashion to fresh food purchases demonstrates a keen understanding of Gen Z's shopping habits and preferences. By offering stylish, affordable clothing and fresh, wholesome food in one convenient location, both in-store and online, Walmart is well-positioned to attract and retain Gen Z consumers. As this younger generation continues to gain purchasing power, strategies like Walmart's will likely become increasingly common in the retail landscape. 

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 participationdifferentiation 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



Friday, June 21, 2024

White Castle’s Customer Focused Marketing Success Continues



Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that, it's clear that White Castle's strategic focus on consumer interactive participatory marketing is what sets them apart in the fast-food marketplace. Their latest campaign for the summer season exemplifies this approach, showcasing how they engage with customers in a dynamic and personalized manner.

White Castle, America's pioneering fast-food hamburger restaurant, is once again demonstrating its knack for innovation and customer engagement with the return of the Hidden Valley Ranch Chicken Rings and the exciting introduction of Smoky BBQ Chicken Rings. These mouthwatering all-white meat Chicken Rings are available at a remarkable value—just 12 for $3.99 at participating locations. 


The Smoky BBQ Chicken Rings bring a perfectly balanced blend of spices, offering bold flavor without overwhelming sweetness or spiciness. Meanwhile, the Hidden Valley Ranch Chicken Rings are seasoned with the iconic Hidden Valley Ranch mix, featuring a tangy blend of garlic, chives, and a touch of buttermilk.

"Our culinary team thrives on creativity, and these Chicken Rings are a testament to that," said Chef Phillip Bach, Head Chef and Director of Product Innovation at White Castle. "The unique seasonings elevate our classic Chicken Rings, promising a delightful and adventurous taste experience."

White Castle's commitment to versatility and customer satisfaction is evident in the Chicken Rings' adaptability. Cravers can enjoy them as a complement to their favorite Sliders or as a stand-alone entrée. With most White Castle locations open 24/7 and others open past midnight, customers can indulge in these delicious offerings whenever the craving strikes.


“These Chicken Rings are perfect for summer gatherings with family and friends,” said Jamie Richardson, Vice President of White Castle. “The combination of delicious flavor and unbeatable value at 12 for $3.99 makes them an irresistible treat.”

In addition to the Chicken Rings, White Castle is offering Shareable Meal #9 for the summer—a family-friendly option featuring 10 steam-grilled Original Sliders, 20 Chicken Rings, and a sack of crispy crinkle-cut fries. This meal is perfect for Cravers looking to feed their family affordably and conveniently.

White Castle's summer promotions continue their tradition of offering exceptional value and unique taste experiences. With a variety of deals and special offers, White Castle ensures that every customer can enjoy their favorite treats at great prices. Highlights include a BOGO free small shake during the Summer Solstice, free Sliders on National Onion Day, and discounted combo meals over the Independence Day weekend.


Here are the exclusive offers scheduled for June and July:

Occasion

Offer

Dates

Summer Solstice

BOGO free small shake after 8 p.m.

June 20 – 23

National Onion Day

BOGO 2 free Sliders (limit 2 free)

June 27 – 30

Independence Day

BOGO individual combo meal

July 4 – 7

National French Fries Day

BOGO free small fries (online orders use code FRYDAY)

July 12

National Cheesecake Day

BOGO free dessert-on-a-stick (online orders use code CAKEDAY)

July 30

“The summer season is packed with memorable moments, and we're here to help you make the most of it,” added Richardson. “White Castle has always focused on value, and we’re your go-to spot for great food at appealing prices, whether it’s morning, noon, or late-night at Night Castle.”

White Castle’s participatory marketing strategy, which includes engaging social media promotions and interactive deals, solidifies their position as a leader in the fast food industry. By fostering a direct connection with customers and providing exceptional value, White Castle continues to set the standard for consumer-focused innovation.

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

In a Battle for

Share of Stomach




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