Fresh Food Retailers Utilize OmniChannel Consumer Focus to Drive Sales

Gone are the days national syndicated food research studies can provide restaurants, grocery stores and C-stores all the valued information a company needs to understand the competition while identifying a clear path for its own direction.  Today successful fresh food retailers focused on consumer’s desires, wants and need set have the ability to exploit the Omnichannel retail world to build top line sales and bottom line profits.

Fresh ready-2-eat and heat-N-eat food companies today can leverage innovative “Digital Zip®” technology offered by MaxPoint Interactive too drive local in-store sales. MaxPoint in a new indexing study focused on Thanksgiving food preferences revealed neighborhoods in Atlanta and Oklahoma City as those most interested in gourmet and comfort foods, respectively.

Here is what MaxPoint does they “analyzed offline and online data points—including point-of-sale data and consumption of social media, videos, music, local Web pages and online magazines—to pinpoint the U.S. cities most interested in gourmet and comfort foods”. This information can then be leveraged into Foodservice Solutions® 5P’s of Food Marketing to garner the best menu mix offerings neighborhood by neighborhood and or city by city depending on the number of units you company may have.

Here are the top 3 cities for Gourmet Thanksgiving Cuisine and Comfort Cuisine for 2012:

Gourmet                                               Comfort

Atlanta                                                  Oklahoma City, OK
New York, NY                                     Green Bay, WI
Milwaukee, WI                                     Grand Rapids, MI

Technology today can empower marketer’s ability to leverage the halo of the brand neighborhood by neighborhood or city by city.  Yes, it’s more work but the results can drive top line sales and bottom line profits all the while edifying your brand, franchisees, and most important your customers.  Brand relevance has never been as important as it is today. Is your brand relevant everywhere? Ready for help? 

Since 1991 Foodservice Solutions® a Tacoma, WA based retail foodservice consultancy has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven Johnson at:grocerant@q.com or the Grocerant LinkedIn page or on Facebook at Steven Johnson, BING / GOOGLE: Steven Johnson Grocerants or Grocerant on Twitter

Fast Casual Summits, Conferences, Seminars another industry Folly

Restaurants customer migration is underway and began in 2005 the first year in 35 that spending on food for home increased over food away from home.  Non-traditional retailers have exploited the fresh prepared food niche leveraging the 5 P’s of Food Marketing garnering share of stomach from the restaurant sector. 

While legacy industry consulting companies and research firm simply missed this shift in consumer focus, we did not.  These same firms to save face and protect turf want you to believe there is a universal convergence within the “fast casual” sector.  Nothing could be further from the truth. If you think that you only compete with restaurants, get over it.  There is a race for share of stomach in retail specifically within fresh prepared ready-2-eat and heat-N-eat sector by well-financed competitors. They want your customers.  The fresh prepared food sector is booming.  The retail world knows it and restaurateurs you should too.

Its 4 PM: your customers are just beginning to think about what's for dinner. 81% of American consumers are unsure about what's for dinner. Time Starved Consumers are looking for high quality ready-2-eat foods and or heat-N-eat meals. Today's time starved consumer want to purchase meal components that they can bundle into a customized family meal that will please everyone without spending time cooking.  The one universal commonality driving customer migration is fresh prepared ready-2-eat and heat-N-eat food aka Grocerant niche food.

Examples of Grocerants       

Restaurant examples are McDonalds, Pret A Manger Burger King, Pizza Hut, Papa Murphy's and Starbucks, each having a fresh ready-2-eat or heat-N-eat food menu. You may not think of Walgreens as a food destination yet Walgreens sells fresh soft-serve yogurt, sandwiches, coffee and sushi at selected stores, so they are technically grocerants. In the Casual Dining sector Maggiano's Little Italy offers a buy one take a 2^nd home for free in their Classic Pastas menu section.  Maggiano’s understands it is not about this rush to fast casual and now so does Olive Garden.  It is a rush for share of stomach and a migrating consumer.

Convenience Store examples are 7 Eleven, Wawa, Sheetz and QuickChek, all of which sell fresh and prepared sandwiches, salads, beverages.

Supermarket examples are Whole Foods, Central Market, Safeway and Kroger… all sell fresh prepared chicken, salads, sandwiches and most offer sushi and beverages.

Drug Store examples are Walgreen and Duane Reade both offer in both New York and ChicagoSushi, Smoothie, Wine, Coffee, and Fro-yo Bars then there are the 455+ CafeW’s severing baked goods and beverages.

The retail supermarket and convenience store sector have unique grocerant challenges. Presentation of the ready-2-eat or heat-N-eat fresh food is important. When you get a meal at a restaurant, the plate and the food look great… let's call this "food for now". Non-traditional retailers are primarily selling "food for later" or take-out and unless an item is a sandwich, the looks of ready-2-eat meals and snacks begin to change.  Are you prepared to change your focus, from defined label to consumer focused?

Consumer Focus

Take-Out and Take-Away food is driving fresh food sales in non-traditional retailers.  In the Hot food section of the grocery store the food in most cases does not look appealing so consumers expectations drop when we get it for Take-Away. That is simply legacy thinkng.  Consumer think Whole Food, Wegmans, Central Market and on and on are RESTAURANT QUALITY even if you do not. Convenience stores like Wawa, the ready-2-eat food looks great in the to-go containers. Why? Because Wawa puts the entire package together. They exert more control on the look and feel of "food for later".

Around the world we are now seeing sections in department's stores and kiosk in malls in Europe and Asia and airports around the world. The items can range from entrees to side items and deserts. Some examples of items range from fried chicken, mash potatoes, cream spinach, to liver and onions, pizza, hot dogs, steak, prime rib, various casseroles (hot-dish) to salads, side salads pie, cake and any single proportioned deserts. They can be picked up at the specific unit, or delivered.

Successful Migration Marketing will be required if you plan to maintain or grow share.

In summary, if you are spending money on outdated legacy focus information you will continue to lose share of stomach to those focused on the consumer. Fast Casual, Casual and QSR restaurant chains have all lost share to new non-traditional retailers. Don’t be fooled trying migrate into a place defined by groups that simply missed the fork in the road the consumers took.

New non-traditional points of distribution and retail food competition are opening daily and it important to be mindful of the migrating consumer. Do you know how to build sales with a grocerant focus?  We do.

Since 1991 Foodservice Solutions® a Tacoma, WA based retail foodservice consultancy has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven Johnson at:grocerant@q.com or the Grocerant LinkedIn page or on Facebook at Steven Johnson, BING / GOOGLE: Steven Johnson Grocerants or Grocerant on Twitter

Digital Food: 5 Reasons Digital is Winning in our Omni-Channel Retailing World.

While we all understand that The 65 Inch HDTV Syndrome has slowed restaurant growth.  If you have not heard of The 65 Inch HDTV Syndrome, here is the link:  http://www.grocerants.blogspot.co.uk/2012/10/the-65-inch-hdtv-syndrome-is-slowing.html  Consumers are dynamic not static your food in digital form can place you in front of the consumer every day in every way. 

Consumers want it now. Traditional Meals times are Re-defined.

Food merchants including restaurants need to be aware that repeat sales are demand driven.  Today consumers expect a seamless life and lifestyle food shopping experience. That means consumer expect your product to be available through all shopping channels, i.e. desk top computer, brick-and-mortar, television, catalog and mobile devices. If they are in or on a channel and they want food if you are not there you are out of luck. Life and lifestyle trump dinner at 5PM.

Customer efficiency equals food retailer efficiency.

The ability for consumers to believe that they simultaneously can do two things at once makes them happy. What the “connected customer” is looking for is ease of use and ability to check brand not a channel; order diner for pick up from work computer, buy fresh food while watching your kids play soccer. If they want your brand the digital device becomes an extension of the brick and mortar supply chain.  

Superior digital food experience creates superior sales.

Omni-channel retail creates a platform where consumer can be knowledgeable about the values of your brand that are important to them. Seamless brand messaging rules in this our Omni-channel world.  IDC Retail Insights found that Omni-channel shoppers spend up to 15%-30% more than multi-channel shoppers and exhibit strong brand loyalty, often influencing others to patronize a brand.

Digital food transparency builds loyalty.

When consumers like your food, they do not like surprises with food availability or pricing.  Utilizing the Omni-channel approach restaurants, grocery stores and C-stores can input real-time data edifying the customer experience. Do you want to be “bookmarked? Omni-channel transparency creates a seamless brand experience and elevates Top of mind awareness.

Omni-channel food retail edifies internal team.

Success steps for Omni-channel retail will require more cross-functional communication than ever before between marketing department and IT department.  Establishing joint customers focus goals and objective will edify the team and place the consumer a win win position. Brick-and-mortar sales are influenced by online search are four times higher than total e-commerce sales, according to IDC.  Consumers want Food where ever they are and when they want it. They want food, to be Fun and Fast seamless.

Since 1991 Foodservice Solutions® a Tacoma, WA based retail foodservice consultancy has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven Johnson at:grocerant@q.com or the Grocerant LinkedIn page or on Facebook at Steven Johnson, BING / GOOGLE: Steven Johnson Grocerants or Grocerant on Twitter

First Global Grocerant Webinar: The Rise of the Grocerant

Foodservice Solutions® Grocerant Guru Steven Johnson will be presenting a webinar for Industry Intelligence on November 14, 2012. The Rise of the Grocerant: The New Normal in Food Retailing.

Non-traditional retailers are focusing on Fresh Prepared Food, leveraging portability, packaging to create family meal cohesion and garner market share. 

Who is after your current customers? Do you understand Migration Marketing?

SOME LIMITED FREE REGISTRATION STILL AVAILABE

80 percent of retailers know about up-dated industry data, but only 47 percent understand its implications for their business, according to a study by Edgell Knoweldge Network.

Consumers are dynamic not static.  Legacy Chain Restaurant and Food retailers must be mindful of the undercurrents of Migration Marketing success steps utilized by Non-traditional fresh food retailers to capture a larger share of stomach. 

This webinar will help you answer:

What are Non-Traditional Retailers doing?

Where are Non-Traditional Retailers doing it?

Who is winning or losing market share Non-Traditional Retailers or Legacy Restaurants?

LIMITED FREE REGISTRATION

Reserve you spot now they are filling up fast.   The link for webinar The Rise of the Grocerant on Nov 14 is:

http://www.i2live.net/webinar-the-rise-of-the-grocerant-nontraditional-retailers-focusing-on-fresh-food-portability-and-packaging-to-create-family-meal-cohesion/

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. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Are Restaurateurs the last to embrace competitors, the under-currents of change, and technology?

The line between restaurants and food retailers is growing ever thinner. The fight for America’s food dollars continues to intensify as consumers find fresh prepared ready-2-eat food options at a wide and growing array of outlets across almost every channel: convenience stores, chain drug stores, restaurants, grocery stores, club stores, vending and even more non-food retailers like dollar stores.  While manufacturers, retailers and restaurants worry about choice overload, consumers have embraced their new choices and show no signs of returning to the old ways.

The restaurant industry is not an industry known for trying to be first as in fastest to market with an ideation, food or technology advance. In the United States the larger the chain in almost all cases the more slowly they are to adopt something than a smaller chain or independent restaurants will.  Chain restaurants goal has traditionally been, simply feed one meal at a time in the restaurant while protecting and edifying the brand. That is not enough in our rapidly evolving Onmi-channel retail world.

Historically chain restaurant leaders have denied the credibility of competitors as non-relevant. The pizza sector is a great example; evolving from family dinning independents to national chain of “Red Roof” Italian to delivery only and now the take-N-bake is in an exciting market share growth phase.

At the intersection of the consumer, fresh prepared food and technology Consumer eating behavior is evolving and is now beyond the control of traditional food marketers. Evolving culture and lifestyle, demographics along with the new uncertain economy are all putting pressure on the American food consumer:  Demands of work, economic shrinkage, the age-old demands of raising a family, commuting, social interaction, health & wellness goals, kids after-school activities, all contribute to a food marketplace where convenience vies with price over legacy brands.

Recent advances in food packaging and new points of distribution have empowered consumer choice, and Americans are embracing these choices even as marketers cringe. The grocerant niche filled with ready-2-eat and heat-N-eat fresh prepared food that is deemed “better for you” continues garnering share of market from legacy restaurants, grocery stores providing a platform of opportunity for retailers looking for growth.

Success does leave clues one clue is Foodservice Solutions®.  We specializes in outsourced business development with a focus on the grocerant niche. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Foodservice Solutions® 5 P’s for Food Retail Success.

Understanding and utilizing Foodservice Solutions® Grocerant Guru Steven Johnson’s 5 P’s of fresh prepared food marketing: Product, Packaging, Placement, Portability and Price with a consumer focus will lead to success.

Channel blurring is not in the mind’s eye of the consumer.  It is only in the mind’s eye of the legacy marketing managers in legacy companies.  The explosive growth within the ready-2-eat and heat-N-eat fresh prepared food niche is a perfect example of how the consumer is responding.

This year alone Walgreen’s, Rite Aid, Amazon, CVS, Dollars General, and Dollar Tree all have developed and rolled out fresh food programs.  7 Eleven continues building on its global success with fresh prepared ready-2-eat and heat-N-eat food. The grocerant niche is redefining avenues of fresh food distribution.  In fact it will define success in years to come within each sector including, Restaurant, Convenience Store, Grocery Store, Dollar Store and Drug Store channels.

It’s time for many in the industry to reconsider individual brand positions.  Who are you and where do you want to be. QSR’s are moving into fresh prepared “better for you food”.  Grocery stores are selling bundled meal components that are fresh prepared.  Grocerant fresh prepared food is going main stream.

Product, Packaging, Placement, Portability and Price are the 5 P’s of successful grocerant fresh prepared food retailing.  Combine the 5 P’s with digital technology, a consumer focus and success follows.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Fresh Food Retailing Expanding Beyond Traditional Borders

The success of ready-2-eat and heat-N-eat fresh prepared food has been documented, talked about and written about for one reason of late.  It is driving top line sales and bottom line profits within existing points of distribution and more importantly at non-traditional points of fresh food distribution garnering share from legacy food retailers.

Is your food company prepared to succeed in 2013, 2014 … 2020? Here are some of the advantages to entering or expanding your business within the grocerant niche:

Exposure to more customers and all Sides of the Food Business

Most large food retailers, big companies, have a narrow focus. That has worked for 50 years.  They have honed their brand and supply chain. They have set and defined boundaries, and it is difficult to get outside of them. Time and technology have redefined the consumer playing field.  Your brand must become dynamic again or risk losing consumer relevance. There is a huge opportunity for share of market if you elect to evolve you brand with migrating fresh food consumers.

People Reward Potential

Large food retailers typically pay more at the C-level, and are seen as stable employment currencies (not-taking risk).  However the grocerant niche when vertically integrated into an existing brand creates a new level of excitement within the entire company.  When sales grow, the opportunity for advancement expands, building team momentum, excitement explodes like a wildfire.  Customers can feel the proactive positive buzz from employees. Doing nothing Boring Doing Something Soaring. 

Proactive Change is Exposure to Success

Change is incredibly dynamic, consumer focused changed is contagious. Change evolves and will go through a bell curve, and you see the whole thing step by step when you vertically integrate change into brand and consumer values. If not integrated you do not really get to escape the velocity of the event, but change is exciting nonetheless and customers will still follow.

Impacting Consumer Relevance Means Thriving not Simply Staying Alive

Are you going to tangibly impact your company or maintain the status quo? Today like never before companies have the ability to evolving a brand at a speed not seen since your company was a start-up. What impact are you going to have on your company? There is a difference between the work you do and the impact you have.  Fresh Food retailing is evolving at break neck speed.  Is your brand evolving fast?

Spin Out, Spin Off or Springboard to more Profitability

If you do nothing but wait, watch or blame the economy you are very likely to simply spin out of control. Redefining your brand with consumer relevance will position you too either create a positive spin off or springboard to the next level.  Legacy organizations need to be mindful that springboards do great things for your organization, your team and your shareholders.

Success Does Leave Clues and Foodservice Solutions® is clue # 1

LTO’s can drive top line sales and bottom line profits while taking you in a new direction.  Are your LTO’s leading your brand, testing your brand or simply copy-cat marketing tactics absent strategy?

Since 1991 Foodservice Solutions® a Tacoma, WA based retail foodservice consultancy has been the global leader in the Grocerant niche. For product or brand positioning assistance contact via: grocerant@q.com, the Grocerant LinkedIn page or on Facebook at Steven Johnson, BING / GOOGLE: Steven Johnson Grocerants or Grocerant on Twitter

65 Inch HDTV’s blamed for slowed restaurant growth.

Have you hear of The 65 Inch HDTV Syndrome? Retail foodservice continues evolving with a strong focus on the consumer.  At the intersection of the consumer, technology and retail food sales we find the grocerant niche creating and expanding points of quality food distribution.  It’s at that intersection that Foodservice Solutions® Grocerant Guru identified one universal commonality driving consumers buying pattern changes.  Johnson calls it “The 65 Inch HDTV Syndrome.

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 5 P’s of Food Marketing: Product, Packaging, Placement, Portability, and Price that retail food sales competition is expanding. Driving ever greater Mix and Match bundled meal options and new points of distribution for consumers.  Consumers love the on-the-go options in fact Zaget’s 2013 NYC Restaurant Survey found that in New York at-home meals surpassed dining out for the first time in 30 years. 

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.  With San Francisco, Phoenix, Oakland and Atlanta all leading the way.   “When it comes to watching football, the best seat in the house really is at home,” stated Susanne Dawursk, GrubHub’s brand marketing director.

More than just sports The 65 inch HDTV Syndrome is driving customers away from frozen foods as well. In a study from Packaged Facts, reports that sales in the $44 billion U.S. retail market for frozen foods have been flat to declining, with nearly all dollar sales gains attributable to inflation or new products -- not to increased consumer demand. The study found that Preference for 57 % of consumer say fresh foods the top reason why US consumers have not purchased frozen foods in the last three months, followed by preference for home-cooked meals.

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?  Contact Steven Johnson Grocerant Guru at: grocerant@q.com

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. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Food Trends “Trickle-up” in 2013 expanding the Grocerant Niche.

Legacy High-end restaurants have been trend setting or so they told us for years.  However new research from Culinary Visions edifies our position non-traditional locations are driving change.  Consumers driven in large part by The 65 Inch HDTV Syndrome are migrating food channels seeking new meal component options.

Sharon Olson, executive director of Culinary Visions research panel that conducted the study of 300 customers nationally including dozens of food experts four three key findings:

Street Markets of Asia are having an influence American food trends

Consumers want to be able to pronounce the ingredients in their food

Food trucks aren't news anymore: Chefs are taking their wares to oddball locations

Authenticity equals food integrity.  Consumers are showing a favor for locally produced foods, local and exotic veggies, street-vendor food and home-preserved foods. What does that mean for national chains decentralization.

The 2013 Culinary Visions research panel director Sharon Olson put it this way:

-- Street markets rule. Say goodbye to the notion of fine-dining trends eventually trickling down to the rest of us. In 2013, it will increasingly be trickle-up. "All of the inspiration will come from street markets," …Much is coming from street markets of Asia, for example, which recently influenced Chipotle to open the Asian-themed ShopHouse chain. "It's a reverse thinking on the way companies look at identifying food trends," she says….

"Pure" food sells. Consumers want the food that they buy demystified. They want to be able to pronounce the names of all the product ingredients. And they want to know where it comes from — ideally, locally, says Olson. "Nothing sells like pure and simple," ….

Kids get coddled. Forget the crayons, toys and prizes. In 2013, the way to appeal to both parents and kids will be to offer healthier but affordable food options; pay attention to food allergies, and train staff to be extra kid-friendly,…

Pop-up eateries emerge. Chefs increasingly will take their cooking talents to oddball locations in 2013 from kiosks to empty storefronts to farmers' fields, predicts Olson. "Food trucks aren't news anymore," says Olson, "so these are new ways of delivering the dining experience."…

Canning gets cool. As the locally grown push grows, so will the notion of canning, curing and cutting in-house. Pickling, in particular, is emerging as a hip way to add a personal touch,…

Veggies rock. From hyper-local veggies to those imported from exotic foreign lands, the vegetable will move to the center of many plates in 2013. Fresh veggies will show up in more school lunches and in more gourmet retail shops, says Olson. "Veggies have become chic."

These may seem “odd-ball” locations to some of you but non-traditional locations are a driving force in the successful growth the grocerant niche. Here are some we have spoken about Fresh food Markets, C-stores, Produce Stands and even Liquor Stores are now selling fresh prepared ready-2-eat and heat-N-eat food.

Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. 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 The Grocerant on LinkedIn or @Grocerant on Twitter

Migration Marketing Helps Restaurants Maintain and Build Sales.

Party of One is simply not happening in the restaurant sector. A party of one is not a party! However if you are a Grocery store, C-store or Urban Chain Drug Store then continue throwing the party because consumers are showing up. Food retailers need to understand that consumers that are single want to buy ready-2-eat and heat-N-eat fresh prepared food rather than cook from scratch.  The facts are simple and straight forward:

1. The United States Census Bureau reports that 50 percent of US citizens over the age of 18 living in the US are single.

2. A recent study conducted by THE HARTMAN GROUP on how we eat as a culture revealed that “46 percent of adult eating occasions (up from 44% in 2010) are undertaken alone.”

To date restaurants particularly Quick Service Restaurants (QSR’s) have benefited rise in sales of single serve meals singles are so attracted too. Did you ever wonder why Panera Bread was opening Drive thru units? OK now you know.

Convenience stores have for years benefitted in the shifting family model in the US.   Instead c-stores focused on mix and match meal options that extended beyond QSR’s drive-thru bundle meal option #1, #2, #3 or #4.  C-stores expanded options empowered consumer choice in fresh food meal options driving both top line sales and bottom line profits.

Understanding Foodservice Solutions® Grocerant Guru Steven Johnson’s 5’P’s of Food Marketing is key to effectively reaching single customers today; the 5P’s are: Product, Packaging, Placement, Portability, and Price. If you are interested reaching out to the single consumer the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization.

Grocery Stores, and Retail Chain Drug Stores have begun selling fresh prepared food that is perceived “better for you” by the consumer in either the deli in the case of grocery stores or in the Fresh Food sections of Duane Reade and Walgreens targeting single shoppers.  Each offers traditional family comfort foods prepared fresh, with customized portion size, more importantly with Mix and Match meal component options.  Who is buying your food?  Where are they eating it?  A party of one is much better for your bottom line than no party at all.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Food Trends for 2013 Threaten Restaurant Growth

New Take-Out and Take-Away Fresh Food Options Threaten Restaurant Growth.  These new fresh food options are coming from unexpected non-traditional retailers. Many of these non-traditional food retailers are fast becoming the New Normal in food retail.  Do you know how The Home Meal Replacement fad Evolved into the Grocerant Niche and isnnow capturing Migrating restaurant customers?

Looking back, during the late Home Meal Replacement frenzy grocery stores, C-stores and restaurants all studied with excitement the successful developments of Phil Romano's Eatzi's. Eatzi's is Where Phil turned the page from restaurateur to foodservice retailer and food merchant. Phil's experiment was a smashing success. It was and remains a concept that is consumer interactive, participatory with visceral authenticity recording sales of 17 Million a year at the original store. Now in NYC Eatlaly is Eatzi's on steroids doing close to 60 Million a year in sales.

Legacy Home Meal Replacement focus quickly faded away in the Restaurant side of business. However in the Grocery, C-store and Drug Store sector it continued to be studied, tested, and implemented. Today the grocerant niche is the strategic path of choice for non-traditional fresh prepared food retailers, targeted at restaurant customers, profitable and expanding at an ever increasing pace.

Food is Part of the Broader Consumer OmniChannel Retail Trends

Wawa was once considered a convenience store now the Wawa positions it's brand as Fresh First, Built-To Order and Ready-To-Go with focus of serving Fast Casual Food - To Go. At Wawa customers are now finding What's for Breakfast, What's for Lunch and now What's for Dinner. Sheetz once a convenience store now calls themselves a restaurant that sells gas. Sheetz Made To Order food is a hit with customers. Sheetz is successful contemporizing legacy C-store products with differentiation, customization and personalization. Consumer like the variety, 24 hour menu serving all day parts - all day long - with a wide range of consumer meal and snacking needs. Sounds and acts like a restaurant doing all the right things. That’s right Sheetz is a Restaurant that just happens to sell Gas.

Rutter's is another convenience store in transition. Rutter's understands the unique balance between palate, price, pleasure and the consumer's drive for qualitative distinctive differentiated new messaging and Rutter's is meeting that need set. 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. Rutter's is an example of brand identity extending beyond consumer expectations within the traditional conveniences store sector. Too the consumer Rutter's is a direct valued competitor within the QSR space.

Examples of Today's Grocerant

The grocerant niche is a result of the blurring of the 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 "better for you", portable and portioned for one or two. All of these operators want a larger share of the retail food market. They want to take share from the restaurants.

Whole Foods is no longer Whole Paycheck but Whole Fresh Food Fast and consumers find that is "better for you". They are driving customer frequency while building loyalty with Fresh prepared ready-2-eat and heat-N-eat better for you food. Whole Foods focus is on convenient meal participation, better for you differentiation, and individualization.

Safeway's has integrated Mix and Match Meal Bundling marketing into daily and weekly iphone app's and legacy print flyers. With a focus on Fresh Prepared Food, Safeway is leveraging The 5 P's of Food Marketing: Product, Packaging, Placement, Portability and Price establishing contemporized consumer relevance. In what was once restaurant food space alone grocery stores, C-stores and Drug stores are now garnering consumer attention.

Walgreens Fresh Food Is a Disruptive Force in the Retail Food Sector.

This video of Walgreens in San Francisco entering the fresh food space is evidence that no food retailer should dismiss as not my competitor. Walgreens with over 78 Billion in sales they has the capital and resources to repeatedly try an try again unitl they get it right. Walgreens might just be The Next Biggest Competitor in the retail food space.

Walgreens Fresh together with Duane Reade has 7,500+ retail outlets. Who is selling what in your back yard? With Walgreens entering the fresh food area again with meats, wraps, soups "and other on-the-go meal options, as well as convenient alternatives for tonight's family meal, it is clear that the future of fresh food retail leadership may be up in the air.

A Final Thought For Retailers and Food Brands

Food Retailing never takes a step backward. Consumers are dynamic not static always looking to save both time and money. The new normal is the grocerant niche propelling new quality points of fresh food distribution and competitors that are well financed. Remember, when it is 4pm, do you know what your customers want to make for dinner ?

Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. 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 The Grocerant on LinkedIn or @Grocerant on Twitter