Thursday, September 29, 2011

Walgreen’s fresh food is expanding consumer choice, while attracting consumers from restaurants.

The food options now available in non-traditional avenues of distribution continue to drive consumer discontinuity within traditional restaurant sectors.  Menu, meal or snack options of fresh prepared high quality food are now attracting consumer too new channels.  Restaurateurs while innovative are simply not keeping up with the innovation from non-traditional fresh food chain outlets. If success leaves clues retooling menus focused on evolving consumer eating habits, styles and flavor profiles may prove more useful than staying with existing niche profiles.
Joseph Magnacca will at the end of this month replace Kim Feil, Walgreen Co’s Chief Marketing officer.  His focus of late has been driving top line sales and bottom line profits in the front of the store with food, fresh food ready-2-eat and heat-N-eat.
Mr. Magnacca was with Duane Reade and did the same thing there increasing consumer traffic, consumer loyalty with fresh prepared grocerant niche food products. This will be a significant change for Walgreen’s yet not unfamiliar territory.  It was not that long ago that Walgreens was one of the largest food retailers in the US.  Grocery stores and restaurants chains should all be keeping a close eye on what is happening in this sector.
Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson, Grocerants or twitter.com/grocerant

Wednesday, September 28, 2011

C-stores gain frequency with fresh food and restaurants performance is falling.

At the intersection of contemporary consumer meal consumption trends and the confluence of the time starved consumer is the grocerant niche filled with fresh ready-2-eat and heat-N-eat prepared food.  Driven by consumer demand these items can be found in Grocery Stores, Chain & Independent Restaurants, Convenience Stores, Chain Drug Stores and increasing at food trucks and online food portals.  New points of food distribution are reshaping the retail food landscape. Is your company ready?
The  NPD Group reports that” the number of annual restaurant visits by an average Millennial consumer (age 16 to 30) has dropped from 245 visits five years ago to 192 this year -- approximately one fewer visit each week. Additionally, a National Restaurant Association survey found that in July, restaurant performance dropped to its lowest level in almost a year, and restaurant owners predicted their worst overall performance expectations in 20 months.”  Price positioning continues the focus within the restaurant sector with fast-food deals leading the way here are some examples:
• $10 pizzas from Pizza Hut, which has reintroduced its $10 any pizza deal. "The environment hasn't gotten any better for consumers," said chief marketing officer Kurt Kane.
• Domino's Artisan Pizza for $7.99, making it the first large, three-topping home-delivered pizza in memory at that price point, according to spokesman Chris Brandon.

• Double Burger King meals for $6.99 that include two Whoppers, two small fries and two small drinks.
• More $5 footlong sandwiches from Subway. Starting Oct. 1, customers can order any footlong sub at that price with the exception of premium subs. "You have to have strong offers out there in this economy," said Subway CMO Tony Pace.
• Mini-Blizzard meals from Dairy Queen that include a DQ GrillBurger with cheese, French fries, a medium drink and a Mini Blizzard.
• Taco Bell's 99-cent Chicken Flatbread sandwich. "Deals are more important than ever," said Marketing Vice President Tom Wagner.
• Free ice cream cones from Burger King for customers who order from its value meal.
Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson, Grocerants or twitter.com/grocerant

Tuesday, September 27, 2011

Evolving Food products drive top line growth.


I phone 1-2-3-4-5, I pad 1-2, Apple computer is evolving technology, and consumer increased desire to simply daily task with technology solutions. The new “I” line of devise has propelled Apple to the top of the fortune 500 list! Apple understands that consumers would accept, buy and utilize products that provide solutions while simplifying daily life. I know some may argue that they are not that easy to use, get over it! They are and consumers know it!

Recently legacy retail food industry insiders have been writing about “meal solutions” coming of age. Articles appearing in Progressive Grocer, Supermarket News, Convenience Store News and Nation’s Restaurant News decrying a battle between Grocery vs. Restaurants, Convenience Stores vs. QSR’s etc.

That fact is retail foodservice success is about simplifying the daily life of the consumer. There is no discontinuity, the consumer is evolving and wants more options, in flavor, portion size and points of distribution. If your company is not evolving with the consumer it’s dying. The grocerant niche of fresh prepared read-2-eat and heat-N-eat food is growing both the top and bottom line for food retailers today.

Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson or BING / GOOGLE: Steven Johnson Grocerants

Monday, September 26, 2011

Food attributes consumer’s value

 
WD Partners understands the food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist.  In industry speak, differentiated does not mean different to the consumer it means familiar.

Cultivating a brand is more important that managing a brand. Brands are dynamic not static, they develop and grow with/for your clients and the consumer.  Identifying distinctive differentiated programs, positioning and consumable’s by day part that reflect the brand, industry trends, consumer preferences is an area of the grocerant niche that Foodservice Solutions particularly excels.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Friday, September 23, 2011

Private Label brand managers or slotting fees and legacy brands what’s working?



Slotting fees are a way of justifying being a poor merchant with rationalization. Diminished is the role of the legacy national brand manager in a world where private label is branded. When national brand manufactures continue paying slotting fees to grocery stores and supermarkets as the easiest way to reach the consumer, then the battle is ½ lost by the brand.
Slotting fees continue to go for space on the shelf of many legacy brands.  All the while many leading companies are utilizing End Caps with the stores own private label products including Trader Joe’s 9highest seals per SQ Ft in retail foodservice.)  If your paying a National Brand manager and your brand value is gone, fire the brand manager or pay higher slotting fees and fool some of the people some of the time.
Don’t become like Campbell’s soup filling the shelves via slotting fees with “less salt soup” only to find out that customers want the salt. Who likes slotting fee’s well for one Wall Street analyst love to see sales via pushing slotting fees at the end of a slow quarter to meet “goals”.  Why they like it is beyond logical reason. 
Mediocre C-level grocery store chain managers like slotting fees better than being force to become merchants.  They utilize slotting fees to supplement profits.  Slotting fees are a way of justifying being a poor merchant with rationalization. By the way Wall Street likes that too! 
The brand managers of the private label products are utilizing a tool out of the National Brand Managers playbook to build loyalty, reinforce value and generate additional sales and profits for the store and their particular private label product.  They are taking the end caps for themselves! While selling high quality products with and ever increasing acceptance by the consumer.
Deep in the store, the private label battle continues with ready-2-eat and heat-N-eat fresh prepared portable food.  All prepared fresh and in most cases right in front of the customer.  Private label Grocerant niche ready-2-eat and heat-N-eat food now has brand managers of their own and they are building sales not with slotting fees.  Think about it, building sales on demand from consumers?  Novel ideation or business fundamentals, you choose.
Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson, Grocerants or twitter.com/grocerant

Thursday, September 22, 2011

Food brand protectionism VS retail food brand evolution.

Retail foodservice is evolving since the economy is not. Retail food operators are evolving product mix and or menu mix in order to keep up with the changing consumer.  Family after family is expressing that they are now becoming exasperated, worried and directly affected by the prolonged economic down turn.

Grocery stores are providing more and more ready-2-eat and heat-N-eat meal component options. Chain Drug stores are now selling ready-2-eat fresh prepared food and Convenience stores continue up grading fresh and prepared meal offerings. Restaurateurs must rapidly readjust menus to reflect the increased in fresh prepared ready-2-eat and heat-N-eat meal competition and new points of food distribution.

If success leaves clues one of them is follow the customer as fast as you can.  If you do not your brand may very well loose its consumer relevance.  During the past three years the grocerant niche has expanded and excelled.  Companies and brands that are or have been practicing brand protectionism are losing market share to those practicing brand evolution.

Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson, Grocerants or twitter.com/grocerant

Wednesday, September 21, 2011

Travel Plaza’s and Truck Stops building ready-2-eat food sales fast.

Food sector by food sector the grocerant niche is propelling top line sales and bottom line profits.  Are your sales up?

 The Grocerant Niche filled with ready-2-eat and heat-N-eat fresh and prepared food has reached every sector of retail foodservice including Travel Plaza’s and Truck Stops.  McLane Co. reported an increase of “24 percent during the 2011 second quarter, compared with a year earlier, led largely by hot and cold beverage sales along with commissary, foodservice, dairy and deli sales, according to the McLane-NATSO Index”

“…The 2011 Second Quarter McLane-NATSO Index also showed that sales of commissary, dairy and deli products jumped 23 percent compared with the same period a year earlier, as retailers continue to market these higher-margin products. Cold dispensed beverage sales, meanwhile, increased 22 percent. These two categories reflect a growing trend toward grab-and-go food at truckstops.”

The grocerant niche growth is unprecedented in retail foodservice.  Every sector of retail foodservice is finding that ready-2-eat and heat-N-eat fresh and prepared food can drive top line growth and bottom line profits.  Need new product ideation,  grocerant niche positioning assistance or grocerant program review; contact Foodservice Solutions® at: 253-759-7869.

Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson, Grocerants or twitter.com/grocerant

Tuesday, September 20, 2011

Conveniences Stores, Trader Joes, Whole Foods all leverage fresh prepared food for success.

Retail foodservice sector leaders, Wawa, Sheetz, Trader Joes, Whole Foods and 7 Eleven are leveraging fresh prepared ready-2-eat and heat-N-eat fresh and prepared meal components to garner market share.

Take-Away, Take-Out or delivered fresh prepared food continues to drive top line sales and bottom line profits within retail foodservice. Trader Joe’s continues to expand its small footprint grocerant across the US with ever increasing success. That success is in large part due to quality meal components that can be bundled in a single or large family meal quickly.  Whole Foods has now reduced the footprint of all new stores while increasing fresh prepared ready-2-eat meal component options.

Trader Joe’s utilizes Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price better than any other food company operating in the US. Upon any visit to Trader Joe’s you will witness a private label fresh or prepared entree in most of the shopping carts. Sheetz with its MTO line and Wawa has its branded Hoagies each is of the highest quality in fresh prepared food.

Both Whole Foods and Trader Joes have food product sampling and information stations staffed with well trained employees that can assist you in creating a special dinner, a family meal or a main dish/ casserole of your own.  One  unique ability of Whole Foods and Trader Joes is the ability to allow consumer to customize while utilizing prepared and packed private label products. Those products reduce the meal assembly and cooking time. The outcome is a quality meal in less time, for less money in most cases. You can even sip a glass of “two buck chuck” from bottle Trader Joe’s house wine while you cook, remember the 5’Ps price is simply one of them.

With dollar stores cherry picking the “center of store” of legacy grocery stores one may begin to wonder how long before the large footprint legacy grocery stores will be around. New formats and fresh prepared meal solutions are clearly leading the consumer in a new direction. C-stores are catching on and growth in fresh food meal options continues to fuel that sectors industry leading growth. Restaurants be aware.

Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson, Grocerants or twitter.com/grocerant

Monday, September 19, 2011

Yum Brands understands consumers need set.

KFC was one of the very first food compaines to  understand the consumers need for  ready-2-eat bundled meal options.  Today KFC continues to offer bundled meal components with the grocerant niche meeting the need set of todays time starved consumer.

John Gordon joins Foodservice Solutions®  leading Food Advocacy: Legislative Action for Food Availability is needed and Good News for consumers

NATION WIDE FOCUS REQUIRES QUICK ADVOCACY ACTION

Sometimes there are important issues that need to be worked, quickly, for the betterment of both consumers (really) and corporations

At the intersection of contemporary consumer meal consumption trends and the confluence of the time starved consumer is the grocerant niche filled with fresh ready-2-eat and heat-N-eat prepared food.  Driven by consumer demand these items can be found in Grocery Stores, Chain & Independent Restaurants, Convenience Stores, Chain Drug Stores and increasing at food trucks and online food portals.

It’s time to allow Americans receiving food assistance to purchase fresh and prepared ready-2-eat and heat-N-eat food from Grocery Stores, Chain & Independent Restaurants, Convenience Stores, Chain Drug Stores and the like.

One such issue is expanding governmental food assistance eligibility

Recession, stagnation or double dip, 45 million plus Americans are currently receiving assistance from the Food and Nutrition Service division of the U.S. Department of Agriculture, which oversees the food stamp program.  Like most legacy government programs its time to up date this program ensuring participant parity and a contemporized relevance.

While the US unemployment rate is roughly 9.2% it is estimated that combined with the underemployed and those not even looking any longer the rate is 14.7% it’s clear a large portion of America is going without. Unemployment numbers are disproportionately high for those under 24 and over 55 increasing anxiety while creating a climate of disorder in the workforce. 

Why is this good thing for all of us?

  • For consumers:

Over the past 20 years there has been a transition in home cooking where the vast majority of meals are not cooked from scratch but assembled meal components.  Components like rotisserie chicken, fresh vegetables, ribs, soups, take-N-bake pizza, casseroles, Chinese entrees, build your own salad. This trend in large part was driven by the ever increasing growth of multi-cultural multi- generational households where meal time consisted of more divergent flavors than ever before.  The skill set to cook multi-cultural meals has not been handed down as in the past. The anxiety of being cash strapped, frustration and desire for comfort food is heightened. Allowing consumer to buy fresh prepared meal components edifies the family unit of today while easing the frustration and pain of economic turmoil.

  • For small business:

Small business nestled in each community across the country, understand the flavor profiles and competitive business environment and are best equipped meet the consumers needs while building community cohesiveness.  Independent restaurants will benefit creating more Jobs.

  • For big business:

Large corporations particularly grocery stores have witnessed the migration of there consumer from the “center of the store” to the perimeter where grocerant niche ready-2-eat and heat-N-eat fresh and prepared food can be found.  National retailers understand the consumer is dynamic not static and want to maintain consumer relevance.  These changes will do just that more jobs.

Who are we?

Foodservice Solutions® has offices in California and Washington and is a foodservice consultancy specializing in outsourced vertical retail food sector strategy - marketing strategy and business development, identifying, quantifying and qualifying niche opportunity for global foodservice related activity since 1991.

Steven Johnson has been a restaurant franchisee and concept developer, is globally recognized for his blog “The Grocerant.” An industry expert in alternative channels of food distribution, he is Grocerant Guru at Foodservice Solutions® specializing in the “grocerant” niche in both fresh and prepared foods. The “grocerant” concept includes grocery stores offering Ready-2-Eat and Heat-N-Eat foods too convenience stores, restaurants and now even the drug store sector. The foundation of Johnson’s work in the channel are the 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price. He holds a Master of Science in Food Marketing with distinction from Saint Joseph’s University, and a Bachelors of Arts degree from the University of San Francisco. He is a member of Beta Gamma Sigma, the International Business School Honor Society. Johnson has received numerous awards including 3 EMMEY, awarded by 3M for “Outside the box” thinking and team leadership.


John A. Gordon is a chain restaurant analyst and management consultant who specializes in niche restaurant sector research, analysis and special business intelligence projects. With a professional lifetime in restaurant operations, financial management and management consulting roles, he provides independent perspective and actionable analysis for investors and others regarding difficult and complex restaurant earnings and economics topics via his niche analysis and advisory firm. . He has a 40 year passion for and association in local, state and national politics and government and has hands on knowledge of the legislative process and how the advocacy game should be played.

What we propose to do:

  • Issue development  the food availability issue is fast becoming a signature interlocking solution needed for both consumers, and economic development as a whole. We will coordinate and enhance this issue with logical, fact rich support for next legislative cycle introduction.  
  • Legislative advocacy: via our contacts and connections, we can work this issue in select, gateway states that will insure fair hearing and progress. This includes briefing and communications to allies, direct legislative access planning and support.
  • Ongoing support:  successful issue implementation via the legislative process requires ongoing care and feeding. We can be the gateway to providing logical support and backup to answer questions and sustain the action over time.

How are we different than the other lobbyist/advisory firms?

  • Laser like focus and attention: this is our issue and we’ll work it exclusively to others.

  • Unlike the other empty suits, we know this business and these issues: we have unique viewpoint and immersion throughout the food “space” and do not sit in ivory towers. If market facing conditions change, we’ll know it before others who sit at the end of the “feed chain”.

  • We don’t have the same baggage as they do: we have no other client conflicts or hidden agendas and have no goal other than client satisfaction.
  • We don’t have the same overhead as they do: let’s face it: cycle time and cost matters.  Why pay the big firms to get up to speed?

Contact us for topical research and suggested action steps

Steven  Johnson, Grocerant Guru, Foodservice Solutions Food Advocacy  Email:grocerant@q.com Voice: (253)-759-7869

John A. Gordon, Senior Advisor Email: jgordon@pacificmanagementconsultinggroup.com

Voice: (619) 379-5561

Thursday, September 15, 2011

Lunch at 7 Eleven; consumer say yes.

Wings from 7 Eleven

Fresh prepared food is entering the marketplace in new points of established distribution. With ready-2-eat and heat-N-eat fresh prepared food becoming the fastest growing and most profitable sector in retail foodservice aka the grocerant niche. 7 Eleven has stepped up and is standing out as sector growth leader.

7 Eleven is perfectly situated to capture a large share of the marketplace. 7 Eleven will experience strong sales growth as they roll out an integrated grocerant food program with distinctive differentiated food consumable’s as an entity with identity by day part. 7 Eleven’s successful food product branding has allowed them to own the flavored crushed ice niche with the Slurpee! They will do it by daypart with other food items as well. If success leaves clues keep your eye on 7 Eleven they are changing and changing fast.

With consumer multi-tasking more and more, convenience stores with a plethora of food offering combined with other services may have an edge moving forward. According to a recent study “ 75 percent of consumers are more satisfied when offered a variety of menu options to choose from; 60 percent of consumers say price is important when choosing between lunch options; 47 percent of consumers choose restaurants that are "earth-conscious"; and 76 percent of consumers take calories and nutrition into account when deciding on lunch.”

Grocerant ready-2-eat and heat-N-eat food is garnering the attention of the consumer. This niche is filled with better for you products that are portioned, priced and portable. C-store success leaves clues in ways that legacy restaurant operators have yet to understand.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Wednesday, September 14, 2011

Whole Foods Edifies whole PAYCHECK!

Picture from LA Times

During the past five years Whole Foods has been one of the most successful grocery stores companies in understanding the US food consumer. Whole Foods has increased consumer frequency, by creating consumer interactive participatory fresh prepared in stores ready-2-eat and heat-N-eat meal options with seasonal relevance and sustainable positioning. Whole Foods could well be in the process of becoming the first national US Grocerant.

Whole Foods with its understanding of the consumer in hand, and lessons learned from its on-going social media advertising; contracted with LivingSocial for a proactive campaign to garner trial and attention. Wow it worked. They sold “1 million coupons on the LivingSocial website”.

Instead of utilizing the LivingSocial program to educate and elevate the consumer about the brands repositioning with the consumer centric focus of in store fresh prepared ready-2-eat and heat-N-eat meal options that have every increasing consumer relevance and higher margins.

They elected to utilize the social media messaging platform to edify legacy consumer tongue & cheek tagline “Whole Foods equals Whole PAYCHECK” The offer was $10 cash for a $20 gift card. 50% discount in the minds-eye of the consumer means OVERPRICED to begin with. Which was the legacy messaging that Whole Foods has successfully been getting away from with their grocerant offerings.

Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price which they utilizes with grocerant niche items would have served them well on this program as well.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Take-A-Way, Take-Out fresh prepared food a success tool in foodservice today.

 
Ready-2-eat and heat-N-eat fresh and prepared take-out or take-A-way food continues to drive top line growth and bottom line profits in retail foodservice today. Creating or identifying distinctive differentiated food consumable’s as an entity with identity by day part that are portable is a key driver of that success. 
Understanding the unique balance between palate, price, pleasure and the consumer’s drive for qualitative distinctive differentiated new food consumables allows companies to identify, quantify and qualify new regional products that become successful.

The food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist.  In industry speak, differentiated does not mean different to the consumer it means familiar.  
Cultivating a brand is more important that managing a brand. Brands are dynamic not static, they develop and grow with/for your clients and the consumer.  Identifying distinctive differentiated programs, positioning and consumable’s by day part that reflect the brand, industry trends, consumer preferences is an area of the grocerant niche that Foodservice Solutions particularly excels.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Tuesday, September 13, 2011

Independent restaurants stumble while leading a year over year loss of 9,450 units

Chain convenience stores continue to garner consumers favor.  With increase customer frequency at chain convenience stores driven in 2011 by new ready-2-eat and heat-N-eat fresh and prepared food offerings it’s easy to say for the fourth year running convenience stores will top the foodservice growth charts once again.  
For every winning sector there is a sector that is down, again this year it is the independent restaurant sector where changing marketing dollars and product buying clout was simply to much to over come. “U.S. restaurant unit counts declined by -2 percent, or a loss of 9,450 restaurants, based on the most recent restaurant census conducted by The NPD Group, a leading market research company. NPD's Spring 2011 ReCount®, which is a census of commercial restaurant locations in the United States compiled in the spring and fall each year, finds most of the total unit declines were independent restaurants, 8,650 of which closed in the census period.
Many C-store operators have adopted to follow Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price; while repositioning their food offerings in the grocerant niche. Building strong sales while increasing customer frequency as they roll out an integrated grocerant niche food program with distinctive differentiated food consumables.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Monday, September 12, 2011

Is your Foodservice operation like a Disney movie?


Is your retail foodservice operation like a Disney Movie, where everything is happy at the end of each month where sales and profits are up. Then you most likely have entered the grocerant niche. Grocery stores, Restaurants, Convenience stores, Dollar Stores, Mobile food trucks and Kiosk are all improving the quality of the food that they sell. The race for share of stomach has never been at a faster or more focused pace.

Consumers want to feel connected to you brand and your brand must remain relevant in the minds-eye of the consumer. The convergence of new non-traditional points of distribution, an evolving grocery fresh prepared sector and lingering economic conditions have created the perfect opportunity for retail food brand expansions. Drug stores chains and Dollar stores are now attracting traditional restaurant and grocery stores customers.

Its time that brand managers challenge the premise of all new food product ideations, pressing, probing and prodding development teams to develop new products for each new avenue of distribution. Brand protectionism never works. The retail foodservice consumer is dynamic not static and the opportunity for branded ready-2-eat and heat-N-eat fresh prepared food has never been greater in multiple channels. If you want your foodservice operation to mimic a Disney movie, remember the grocerant niche.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

Thursday, September 8, 2011

Retailers find that “Better For You” food is good for the top and bottom line.

Consumers of all ages are looking for and buying “better for you” food today.  They are utilizing a confluence of new tools including mobile app’s, from wireless phone, On-line ordering from computers and PDA’s, IPad’s to name just a few.  The younger the consumer the more likely they are to find any of these alternate forms of ordering preferable. This is also perceived as better for you from the consumer perspective.
Foodservice consumers responded to a research survey conducted by the International Food Information Council (IFIC) on Functional Foods.  The survey found that “89% of Americans agree that certain foods can have benefits for long term health including reducing the risk of disease or other health concerns.  Consumer identified the following:
  1. Fruits and vegetables
  2. Fish / seafood
  3. Milk & Yogurt
  4. Meat & poultry
  5. Herbs & spices
What is most interesting to me is that the number one item on the list also appeared as the number one food preferred by college students in dorm meal plans for the past 20 years!

Now think about it, our customers are looking for a better for you food products when they go out to eat and at home.  Grocerant ready-to-eat and ready-to-heat prepared food must be comprised of better for you food and available in better for you formats for contemporize consumer relevance.
Prudent retailers will soon understand the power of the Grocerant niche!  Ready-to-eat, Ready-to-heat quality bundled meal options that are better for you, create demand in new and alternative channels of sales and distribution.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Wednesday, September 7, 2011

Family Food Fast: The rise of the Grocerant.

The Grocerant niche is comprised of Ready-2-Eat and Heat-N-Eat fresh and prepared food that is better for you.  The niche continues expanding, founded within the restaurant sector, then into grocery stores, convenience stores and now into the retail drug store sector.  The grocerant food is entering the convenience store niche at such a fast pace that the C-stores sector of the foodservice industry has lead all other retail food sectors in year over year growth for the past two years.
The primary driver of the grocerant niche is quality food bundled as components allowing and promoting consumer choice.  Meal time is now becoming a time of convenient meal participation, with differentiation and individualization for the entire family.  When a family can mix and match components everyone wins.
Companies that utilize Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price; will understand success can be found within the grocerant niche. Building strong sales if they roll out an integrated grocerant niche food program with distinctive differentiated food consumables as an entity with identity by day part.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Tuesday, September 6, 2011

Zagat's 2011 National Fast-Food Restaurant Survey results.



This year's Zagat's most popular fast-food chains include:

Mega Chains Large Chains Quick Refreshment

1. Subway 1. Five Guys 1. Starbucks

2. McDonald's 2. Panera Bread 2. Dunkin' Donuts

3. Wendy's 3. Chipotle 3. Culver's

4. Burger King 4. Chick-fil-A 4. Ben & Jerry's

5. Taco Bell 5. In-N-Out Burger 5. Cold Stone Creamery

This year's Top Overall Rated chains (averaging food, facilities and service ratings) are:

Mega Chains Large Chains Quick Refreshment

1. Wendy's 1. Chick-fil-A 1. Pinkberry

2. Subway 2. In-N-Out Burger 2. Red Mango

3. McDonald's 3. Papa Murphy's 3. Peet's Coffee & Tea

4. Pizza Hut 4. Panera Bread 4. Culver's

5. KFC 5. Chipotle Mexican Grill 5. Coffee Bean & Tea Leaf



Zagat surveyors also named the best fast-food items in a variety of categories including:

Burger: Five Guys

Fried Chicken: KFC

Grilled Chicken: Chick-fil-A

Breakfast Sandwiches: McDonald's

Value Menu: McDonald's

Overall Value: McDonald's

Child-Friendly: McDonald's

Drive-Thru: McDonald's

Wings: Buffalo Wild Wings

According to the survey, 69 percent of diners favor calorie count displays; moreover 55 percent report that their dining behavior has been influenced by such calorie counts.

"For better or for worse, fast-food is a major part of American culture, with our average surveyor eating at chain restaurants nearly 11 times per month,” said Tim Zagat, CEO of Zagat Survey. “It's worth noting the majority of surveyors are taking their health seriously and are demanding transparency from the industry. It's also encouraging to see chain restaurants stepping up and offering healthier options."

For the third year in a row, Subway wins for Top Healthy Options, Top Service and Most Popular Mega-Chain. Jason's Deli (Large Chain), and survey newcomer Red Mango (Quick Refreshment) also rank No. 1 for Healthy Options.

A new category this year is Best Wings. The inaugural award goes to fast-food chain Buffalo Wild Wings; KFC followed.

Explaining its success, McDonald's (with more than 33,000 units worldwide) topped a host of categories including Best Value, Best French Fries, Best Breakfast Sandwich, Most Child Friendly and Best Drive-Thru.

This year's champ for Best Burger is Five Guys Burgers & Fries. In second place is cult-favorite In-N-Out Burger, followed by Wendy's where it's 'hip to be square' (burger patties), Burger King and McDonald's.

Private Label products are key drivers of the grocerant ready-2-eat and heat-N-eat niche.

Trader Joe’s, Whole Foods, TGI Fridays, Boston Market, Sheetz, Wawa and Walgreen’s all have entered the branded private label ready-2-eat and heat-N-eat fresh and prepared food grocerant niche.  Each is finding success while rolling out additional meal components.  Consumers have responded positively, in fact the entire food industry is taking notice.
Thom Bilschok global president, innovation and strategy for SymphonyIRI stated while speaking about IRI’s new survey “Accelerating Growth in Uncertain Times” that “ meal ingredients and components together make up the “hottest supercategory”We’re projecting that meal ingredients are going to grow over double digits for 2011 and 2012,” he said. “Shoppers continue to [struggle] with expenditures.
Success leaves clues and Blischok went on to make a number of suggestions. Within meal ingredients/components, retailers should invest in flavor innovation. “People are getting tired of eating the same old meatloaf — they’d like to try a different kind of meatloaf,” he noted. “So if I were a retailer, I would do two things: I would make sure shoppers understood that I’m there to help them make a simpler, better-quality, more value-driven meal than in the past; and I would be doing some private brand innovation around flavors and taste.”  Regular readers of this blog are not surprised by this at all.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

Monday, September 5, 2011

Friday, September 2, 2011

Hand Held food continues to gain popularity.



In NPD Group’s 2011 report on Eating Patterns in America famed food industry research and speaker Harry Balzer found that Hand Held food lead the category of which food we ate more of this year than ever before both at home and at restaurants.
 The foods and beverages U.S. consumers ate more of last year than ever before:

In-Home Meals
Pizza
  • Fruit
  • Salty Snacks
  • Yogurt
Restaurant-Purchased Meals
Breakfast Sandwiches
  • Hot Cereal
  • Snacks Burritos
Regular readers of this blog will not surprise by Mr. Balzer findings on Hand Held foods.  What we found most interesting is he confirmed our findings with regards to Ready-2-eat and Heat-N-eat fresh and prepared food.  He found …”While consumers are less likely to use a "fresh" product to prepare dinner at home than they have been since NPD began tracking this in 1985”.
Meal assembly is another recurring theme on this blog.  Clearly retailers must react to consumer demand for fresh prepared ready-2-eat and heat-N-eat in order to maintain consumer relevance.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com