Thursday, February 28, 2013

7 Eleven is the poster company for the Grocerant Niche.



Growing at a rate of 14.0+% in the United States alone with close to 50% of the new units not offering gasoline it’s fresh food that is key to success.  Grocerant niche ready-2-eat and heat-N-eat food continues to drive all retail food success. 

7 Eleven outpaces all large food retailers, most medium size and many small competitors in the retail food space in 2012. They experienced record growth and are on target to surpass the 50,000-store mark prior to the end of Q-1 2013. Success Clue for those of you who are not regular readers: Fresh Food Sells.

In 2012, 7 Eleven the world’s largest retailer by store count added nearly 5,000 units to its worldwide portfolio.  7 Eleven CEO Joe DePinto said “We expect accelerated growth in North America to continue, and we also see many more opportunities”… “2012 was a tremendous year for us in terms of organic store growth, acquisitions and business conversions. We expect accelerated growth in North America to continue, and we also see many more opportunities for international expansion.”

7 Eleven has intensified it focus around the world on Fresh Prepared ready-2-eat and heat-N-eat food. They have improved distribution, food quality, service all the while building day-part meal awareness. The grocerant niche is elevating and expanding points of fresh food distribution daily. So is 7 Eleven.

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

Wednesday, February 27, 2013

C-stores shifting to healthier fare too garner new customers.



Mintel reported that two-thirds of Americans are focusing on healthier food options in a new CPG food and drink report. Mintel’s John Frank stated in Convenience Store News, “As a result, today’s consumers are seeking out healthy food with greater urgency. However, skeptical or confused consumers aren’t likely to pay a premium for healthier food.”  C-stores need to be mindful when introducing new “better for you” products and how and where they position them within the stores.

Across the country C-stores are focusing on fresh food that is “Better for You” including 7 Eleven which just last Friday offered its Free Fresh Food Friday in Portland, Oregon. They introduced a line of fresh foods and downsized some of its fare by creating portion-sized items. The goal at 7 Eleven is to have 20 percent of sales come from fresh foods in its U.S. and Canada stores, up from about 10 percent currently, according to a December New York Times report.

In a Kansas the focus is on salt intake. Convenience Store News reported “Hy-Vee Convenience Store, Gas & Shop Convenience Store, Larry’s Shortstop and 10 local Kwik Shops in Shawnee County, Kan., agreed to display a standalone rack of healthy, low-sodium items (chosen and customized by a dietician) in a prominent spot in their stores. This health initiative was spearheaded by the commissioners in Shawnee County, which provided the racks, promotional signage, technical assistance and advertising.”

The West Coast is playing catch up but Minute Market in Oregon is another c-store operator adding and testing better-for-you items like string cheese, low-sodium sunflower seeds, fresh fruit and "healthier" drinks for kids as reported by CSnews. “As the industry changes, we are getting more options to choose from and bring in as our main distributor picks up these healthier products,” said Phyllis Simpler, Minute Market's operations manager. “Over the last year, especially, a lot more products have been madeavailable to us.”

In Brattleboro, Vt., independent C-stores joined the Healthy Retailers program, sponsored by the Brattleboro Area Prevention Coalition in collaboration with the Vermont Department of Health. CS News reported that ”In addition to discouraging tobacco and alcohol use among youth, the program resulted in vegetables, new fruit varieties, and ground beef and pork products from local farms being available for purchase at select convenience stores in the area.”

Restaurants, Grocery Deli’s and Retail Drug Stores are all focusing on grocerant niche ready-2-eat and heat-N-eat fresh prepared food that is “better for you”.

Steven Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at: http://www.grocerants.blogspot.com. For more on the Grocerant Niche visit linkedin at:linkedin.com/in/grocerant,facebook.com/Steven Johnson, Twitter.com/grocerant Email Contact: grocerant@q.com

Tuesday, February 26, 2013

'Fabulous Fresh Foods Friday' 7 Eleven is turning up the heat on restaurants.

Non-traditional fresh food retailers have been garnering market share from the restaurant sector for 7 years.  The Convenience sector has garnered the most over that period.  7 Eleven the world’s largest C-store chain once known as the king of roller grill food is stepping out from behind the roller grill and into fresh food in a big way.

7 Eleven is proud of what they are cooking, brewing and warming in its stores and last Friday they offered residents of Washington and Oregon free samples of new fresh food offerings. I what they called “Fabulous Fresh Food Friday”.  Yes, 7 Eleven has its eyes on the ready-2-eat and heat-N-eat fresh prepared food grocerant niche is a big way.
 
While all of the samples were free disappointment could be hear during our channel check over some of the “fresh” roller grill items the new coffee, fresh sandwiches and Salted Caramel Mocha Cappuccino seemed to be a hit. I agree the roller grill seemed to diminish the value of the messaging.  I do not think they should eliminate the roller grill right away but when offering “Fresh Food” it might be wise to reflect on consumers predisposed inclinations on the roller grill.

7 Eleven with global sales in-excess of 76 Billion Dollars can and will become a global force in the ready-2-eat and heat-N-eat fresh food grocerant niche. All food retailers must be mindful success leaves clues and 7 Eleven is elevating its fresh food offerings that is a clue to how they grew new units 14.4% in 2012. Did you? Close to 50% of 7 Elevens new stores do not sell gasoline, they are food focused.
Interested in learning how Foodservice Solutions® 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Sunday, February 24, 2013

Restaurants with seats to fill use Threep; Social, Local, Mobile, and Digital Marketing







Mr. Conley will be attending SXSW from March 9th -12th 2013.  For a one-on-one meeting or press interview call: 415-589-9619 to set up an appointment or Email: "Darren Conley" dcprime@gmail.com

It will take you less than a minute to understand the value you can garner from Threep.  Here is a link to the 58 Second Video: http://grocerants.blogspot.com/2013/02/threep-promo-video.html

2014 Contact: Darren Conley dcprime@gmail.com , or  Darren Conley" dconley@tiriam.com ,

Threep is currently available in the Apple App Store as “Threep Lite” and will be publically released for Android early next month. Threep is contributing to the evolution of the mobile food space that is resonating with consumers.  Threep is a platform providing contemporized consumer relevance and can edify every food marketer’s tool kit.
The only out-of-pocket cost to you would be for a smart device to run the retailer software such as an iPod Touch, which sell for less than $195.00 (or about $0.66 per day for the first year) per store.  If your location already has an iPhone, iPad, or iPod Touch, it can be set up to run on your existing devise at no cost.
The ability to build sales, customer frequency, and check average targeting office workers for lunch, happy hour, dinner and family’s on the weekend specifically could contribute significantly to your efforts to build both top line sales and bottom line profits.  You pay only for positive results – there are no fees, no sales.
Leveraging segmentation techniques, Threep can aggregate groups by day-part, age; sports teams (little league to senior bowling), company office, church group, bridge clubs or birthday clubs. Threep can drive top line sales, leveraging micro groups for macro results.

If you are planning to be at SXSW this weekend, please contact us as we would love to talk to you in person about the benefits Threep can offer your business.
Steven Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at: http://www.grocerants.blogspot.com. He can be found on linkedin at:linkedin.com/in/grocerant,facebook.com/Steven Johnson, Twitter.com/grocerant Email Contact: grocerant@q.com Phone: 253-759-7869


Coffee a battle over market share is brewing and Burger King is throwing the first punch.



Convenience Stores have be sipping / siphoning coffee market share from the restaurant sector and as Mitch Morrison reported in CSP Daily News C-stores “are finally growing their total hot beverage unit sales after the economy fell in late 2008.(They) are now back and above historical unit consumption levels.

Burger King has taken notice. In fact Burger King following the lead once again of McDonalds has upgraded its coffee offerings with the help of an unusual restaurant sector competitor Starbucks wholly owned subsidiary Seattle Best Coffee. 

Understanding the importance of fresh brewed ready-2-eat food and “better for you” beverages Burger King is levering one of the 5P’s of food marketing (Price) to introduce its new line and garner trial with consumers. Consumer can “Receive a 12-ounce Smooth Roast Coffee For Just 25 Cents Now Through March 10th at Participating BURGER KING® Restaurants Nationwide”

Restaurants including Burger King have a plethora of advantages over coffee offering from C-stores and adding price to drive trial will be key.  However speed of service, available inside seating and bundling meal components will also contribute greatly.  Who’s food are your selling and what channels would you like to be in next? The Grocerant Niche is filled with opportunity. Is your company ready to get in the game?

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

Saturday, February 23, 2013

Take-Away, Take-Out and Ready-2-Eat Fresh Food Sells



The Grocerant niche filled with “better for you” Heat-N-Eat and Ready-2-Eat fresh prepared food can drive customer counts and frequency when consumers believe the food is “local”.

In a new study by A. T. Kearney found that Seventy percent of Americans would pay more for locally grown foods, survey says: 66% buy local because they believe it helps local economy, 60% because they think it offers better assortment of products, 45% because they believe it's more healthful.

The food business is just that simple. All marketing is local. Consumers want to buy, eat and share fresh food.  Leverage restaurant and food marketing segmentation techniques, the ilk of Threep to aggregate messaging via groups by day-part, age, gender, and other demographics, reaching sports teams (little league to senior bowling), company office workers, church groups, bridge clubs, birthday groups, and many more.
Interested in learning how Foodservice Solutions® 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Friday, February 22, 2013

Grab-N-Go Fresh Food Is Expanding Non-Traditional Food Outlets



Hot Dog Carts once a novelty, quickly became an acceptable option for a hot meal, snack or on the go ready-2-eat fresh lunch option in urban centers.  Today hot dog carts are alive and well, but crowed out is some cities by taco carts, carts offering wraps and some focused on salads alone.

The grab-N-go fresh prepared ready-2-eat and heat-N-eat food aka the grocerant niche is expanding beyond carts to food trucks, C-stores, Grocery stores and retail drug stores all adding made to order foods. 
Walgreens is offering fresh prepared products from sushi, salads, wraps and sandwiches all made fresh in the stores is select urban markets while offering fresh prepared packaged options in many suburban locations. Gone are the days of roller grill hot food masked as fresh and better for you.

Consumers increasing are leveraging many platforms including restaurants, grocery stores, C-stores, food trucks, carts and C-stores for purchasing meal components that can be bundled into a family meal.  Fresh prepared ready-2-eat and heat-N-eat food that is “better for you” will continue to drive retail sales as long as it continues to get closer and closer to the consumer. What new avenues of distribution is your food in?

Interested in learning how Foodservice Solutions® 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Thursday, February 21, 2013

Ready-2-Eat and Heat-N-Eat Food is Booming.



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 in take-out and take-way options.
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, evidenced by the Dollar Store formats selling more foods and Walgreens selling fresh foods and doing it well as you can see from this video of a Walgreens in San Francisco. 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 (Limited Time Offers) 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

Wednesday, February 20, 2013

The Food Shopper is Spurring New Retail Food Formats



Trader Joe's and Whole Foods have created ready-2-eat and heat-N-eat fresh prepared food items with qualitative differentiation as an entity with identity that has help propel them into ready-2-eat fresh prepared food leadership. In fact recent research shows that both Trader Joe's and Whole Foods are each known for high quality (restaurant quality) ready-2-eat and heat-N-eat foods with distinctive offerings. More important each is leading with innovative products and package size that create value and have positioned each chain as a food shopping destination for meal components customized and personalized for immediate consumption or mix and matched for a meal time at home. In short they are stealing your customers.

Walgreens fresh prepared food is restaurant quality and priced less than Panera Bread or Corner Bakery CAFE. Both Panera Bread and Corner Bakery CAFE thrive in urban locations. Walgreens is now growing price, quality and speed of service advantages over legacy retailers. Legacy restaurant chains must reconsider the speed at which they evolve and adapt or non-traditional outlets will capture profits margins as well.

Traditional views of meals and mealtime can pretty much be discarded. Legacy retailers waiting for the "next big thing" to copy simply might be out of luck this time. Legacy food retailers may not like to be first movers very much but it may prove that waiting too long will not work this time.

Product, Packaging, Placement, Portability and Price are Foodservice Solutions® 5 P’s

The retail food world is evolving at an ever increasing pace filled with innovation in food, portion size, points of distribution, and quality fresh prepared meal solutions. The price, value, service equilibrium is resetting in retail foodservice. In order to edify the brand and reinforce consumer relevance restaurateurs must leverage Foodservice Solutions® 5P's of food marketing. 

Many legacy food retailers continue to practice brand protectionism, stifle the brand while diminishing consumer relevance. The consumer is dynamic not static. Brands must be dynamic, evolving with the consumer. Four more years of watching other retail sectors thrive should be long enough. Success in the restaurant world is no longer simply about what happens within your 4 walls.

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 http://www.linkedin.com/in/grocerant or twitter.com/grocerant 

Tuesday, February 19, 2013

Pizza consumption remains at 9 % of all meals consumed in the U.S.



In search of what drives frequency within the Pizza Sector Consumer Edge Insight conducted a study to identify the most commonly-cited factors in determining which pizza take out consumer like best and why.
Here are the finding as reported by David Decker President of Consumer Edge Insights:

  1. The restaurant patronized most often are good value (53%),
  2.  Convenient locations (44%),
  3.  Low prices (44%),
  4. Good discounts / Promotions
  5. Fast Service
 Decker found within that the survey included five of the largest pizza-takeout restaurant brands in the US: Cici’s Pizza, Domino’s Pizza, Little Caesar’s Pizza, Papa John’s Pizza, and Pizza Hut. Here is a list of who won the different attributes consumers value:

  1. The strongest perceptions for providing “good value” among past visitors were Little Caesar’s (45%) and Cici’s (43%).
  2. The top-scoring pizza-takeout brands for “convenient locations” were Pizza Hut (40%), and Domino’s and Little Caesar’s with 34% each.
  3. The top-scoring brands for “low prices” were Little Caesar’s (50%) and Cici’s (47%),
  4. The top-scoring brands for “good discounts/promotions” were Domino’s (39%) and Little Caesar’s (38%).
  5. Brands most likely to be perceived to offer “fast service” were Little Caesar’s (43%) and Cici’s (38%).
  6. When it comes to taste, Papa John’s was top-rated for having great-tasking” food by 44%
 Interested in learning how Foodservice Solutions® 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Monday, February 18, 2013

Restaurant Customer Migration is Growing Where is your Customer Eating?



Driven by the 65 Inch HDTV Syndrome Foodservice Solutions® Grocerant Guru Steven Johnson found:
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. This fight is taking place in what is called the grocerant niche.
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 is simple feed one meal at a time in the restaurant while protecting and edifying the brand.
Historically chain restaurant leaders have denied the credibility of start-up competitors as non-relevant. The pizza sector is a great example; evolving from family dinning independents to national chain of "Red Roof" Italian, then to delivery only outlets and now take-N-bake is garnering market share in the pizza sector. (Note: Home Made Pizza Company and Papa Murphy's are further examples of take and bake pizza operators.)
Trends in the Food Industry Point to an Increase in Non-Traditional Meal Occasions
At the intersection of the consumer, fresh prepared food and technology we fine that 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, demands of raising a family, commuting, social interaction, kid's 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 non-traditional food distribution have empowered consumer choice, and Americans are embracing these choices even as legacy marketers cringe. Who's after restaurant food dollars… simply put… everyone.
Why should you care if Walgreens is selling fresh prepared ready-2-eat and made-2-order sandwiches? Why should you care if Whole Foods, Trader Joe's, Safeway and Wegmans are selling ready-2-eat and or heat-N-eat fresh pizza? Why should you care if Coinstar is selling Seattle Best Coffee at 1,000 locations for $1.00?
You should care because they are selling it, and you are not! The fastest growing sector of retail food service for the past four years has been the Convenience store sector. The C-store sectors growth in large part has been driven by fresh prepared food. Non-traditional avenues of distribution are growing, gobbling market share while establishing new patterns of consumption, price points and customer loyalty.
The Shopper is in Control Spurring New Retail Food Formats
Trader Joe's and Whole Foods have created ready-2-eat and heat-N-eat fresh prepared food items with qualitative differentiation as an entity with identity that has help propel them into ready-2-eat fresh prepared food leadership. In fact recent research shows that both Trader Joe's and Whole Foods are each known for high quality (restaurant quality) ready-2-eat and heat-N-eat foods with distinctive offerings. More important each is leading with innovative products and package size that create value and have positioned each chain as a food shopping destination for meal components customized and personalized for immediate consumption or mix and matched for a meal time at home. In short they are stealing your customers.
Walgreens fresh prepared food is restaurant quality and priced less than Panera Bread or Corner Bakery CAFE. Both Panera Bread and Corner Bakery CAFE thrive in urban locations. Walgreens is now growing price, quality and speed of service advantages over legacy retailers. Legacy restaurant chains must reconsider the speed at which they evolve and adapt or non-traditional outlets will capture profits margins as well.
Traditional views of meals and mealtime can pretty much be discarded. Legacy retailers waiting for the "next big thing" to copy simply might be out of luck this time. Legacy food retailers may not like to be first movers very much but it may prove that waiting too long will not work this time.
Product, Packaging, Placement, Portability and Price are Foodservice Solutions® 5 P’s
The retail food world is evolving at an ever increasing pace filled with innovation in food, portion size, points of distribution, and quality fresh prepared meal solutions. The price, value, service equilibrium is resetting in retail foodservice. In order to edify the brand and reinforce consumer relevance restaurateurs must leverage Foodservice Solutions® 5P's of food marketing. 
Many legacy food retailers continue to practice brand protectionism, stifle the brand while diminishing consumer relevance. The consumer is dynamic not static. Brands must be dynamic, evolving with the consumer. Four more years of watching other retail sectors thrive should be long enough. Success in the restaurant world is no longer simply about what happens within your 4 walls.
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 http://www.linkedin.com/in/grocerant or twitter.com/grocerant 

Sunday, February 17, 2013

Ready-2-eat and Heat-N-eat Fresh Prepared Food Rocks in 2013



Do you have time to eat, time for dinner or even time for cooking at home today?
If you are "ready-2-eat" there is a very good chance you are looking for fresh prepared multi-flavor, multi-ethnic Grocerant meal components. Heat-N-eat and ready-2eat fresh prepared food with portability is driving retail food success in 2013. Where are you shopping for you food today is not the same place your mother was nor is the meal prepared the same way.
As long as multi-generational family's gather for meals together, the demand for more divergent flavors continues to permeate. Grocerant mix and match bundled meal component offerings allow for increased family integration, understanding and acceptance in less time without a required cook from scratch skill set.
In the 1940's cooking from scratch was the normal. The average home cooked meal took 150 minutes to prepare. Everyone sat down at the table and enjoyed it or not but they all ate the same thing. Today's "home cooked meal" takes on average less than 30 minutes to prepared. In most cases at least two different entrées are served.
The average time spent inside a McDonalds in the 2,000 was 11 minutes. Today 65+ percent of all McDonald's food is sold via the drive-thru. U.S. fast-food chains are increasingly remodeling restaurants in an effort to garner additional drive-thru customers inside and increase sales, simple because the drive-thru can't hold all the cars.
According to the New York Times Magazine - McDonalds Came Back Bigger Than Ever McDonald's Corp. saw a 50% increase in sales during the first quarter of 2012 after opening a remodeled restaurant in Riverside, California, that features a new décor, solar panels on the carport, and ceiling panels that contain L.E.D. lights. During the first 12 months, sales at this restaurant increased 20% overall.
Walgreens is creating and bundling distinctive differentiated food consumable's as an entity with identity by day part in a mix and match meal component format in select urban setting targeted at both the office worker for lunch and meal components for them to take home for the family dinner. It is a successful program. With over 7,550 units operating in the United States Walgreens has the potential to become the most disruptive force in food retailing in 50 years. Walgreens with its modular mid-sized foot-print is garnering customers from both restaurants and grocery stores.
Consumers Want Easy to Prepare Meals
The grocerant niche continues to grow with companies like Central Market, Whole Foods, Wegmans and 7 Eleven entering the fresh prepared better for you space. Meal time is now becoming a time of convenient meal participation, with differentiation and individualization for the entire family. Safeway with its lifestyle stores are heading in the right direction however the stores are so large consumers are forced to spend more time in them than they want.
More often than not the multi-generational family today is multi-ethnic as well. Creating a demand for more varied flavors and additional cooking skill set that is simply not there. Grocery stores, Convenience Stores, Restaurants and Chain Drug Stores are all selling ready-2-eat and heat-N-eat fresh prepared food. Is your focus family dinning? Are you selling meals or meal components for Take-Out, delivery or Take-Away?
Lacking the skill set to prepared fresh prepared multi-ethnic meal components at home coupled with the time it takes to prepared a home cooked meal it is clear the buying habits of consumers will continue to evolve. Bundling mix and match meal components into a meal is one key driver within the grocerant niche. Given that most American family are comprised of multi-cultural background. The fight for share of stomach will only intensify.
Restaurants menu's at one time were very narrow in focus and have moved more upscale with offerings such as Oriental; Chicken Salad, Southwest Chicken Salad, along with a chef salads. Grocery stores on the other hand are expected to sell complete lines of reay-2-eat multi-ethnic food. That places higher expectations on grocers than restaurants or a company like Walgreens. Walgreens might just be in the perfect spot to expand fresh prepared food offerings capturing customers from both restaurants and supermarkets.
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 A. Johnson or the Grocerant LinkedIn page or on Facebook at Steven Johnson, BING / GOOGLE: Steven Johnson Grocerants or Grocerant on Twitter

Saturday, February 16, 2013

Meals To-Go Up 38% Year Over Year at C-Stores.



Stealth Competition is no longer just between restaurants, grocery stores and supercenters this had better be your wake-up call.  The United States conveniences stores have increased in numbers since 2005 by 8,100 according to Nielsen. The US total store count as of January 2013 stood over 149,000. 

Regular readers of this blog know we have documented the focus of the convenience store sector on ready-2-eat and heat-N-eat fresh prepared food.  Not only were sales on “meals on the go” up 38% year over year but total same store sales were up year-over-year 4.90%.  That number again was the best of any sector in retail foodservice.

Increasingly Convenience Stores are adding Drive-Thru’s which are providing not only direct competition for restaurants but grocery stores as well.   C-stores with drive-thru’s are making most stores items available including basics the ilk of bread, eggs, milk and cereal along with ready-2-eat and heat-N-eat fresh prepared food.  This is FRESH FOOD FAST and MORE.  Consumers are dynamic not static and they want more and they like saving time.  Convenience stores are becoming food retail giants. 

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

Friday, February 15, 2013

Multi-Cultural Flavors Drive Bundled Meal Components Sales.



Alice May Brock said: “Tomatoes and oregano make it Italian, wine and tarragon make it French, sour cream makes it Russian, lemon and cinnamon make it Greek, soy sauce makes it Chinese, garlic makes it good.”

Convenient meal participation, differentiation and individualization; are each hallmarks of the ready-2-eat and heat-N-eat fresh prepared grocerant niche.  That is the recipe for retail food success in 2013.

Meal components allow customers to select from Italian, American, French, Russian or Greek and utilize the components at home any way they like.  The new American meal can be a composite of any prepared food components that the individual may want and they can mix and pair them any way as well.  The United States is a melting pot of people from all over the world, with different cultures, traditions and flavor preferences.  

The new American meal is a melting pot of flavor and choice.  Meal components that can be mix and matched for home consumption are integral to retail success.

Fresh prepared and portable ready-2-eat and heat-N-eat foods are now available for all comers and can be found at Convenience stores, Drug stores, Grocery stores, Restaurants, Mobile trucks all just waiting for the taking.  When developing new menu items do you consider where the food will be consumed?

Consumers have been exposed to a plethora of flavors and have not the time to master the skill of cooking each.  The rapidly growing grocerant trend is empowering the consumer to establish new customs and traditions in eating better, more flavorful food.  The Grocerant niche is about convenient meal participation, differentiation and individualization.

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

Thursday, February 14, 2013

Food Manufactures find success with Meal Kit’s



The grocerant niche continues to garner momentum making it the fastest growing sector of retail foodservice. Restaurants, C-stores, Grocery Stores, and Drug Stores are now all selling ready-2-eat and heat-N-eat food.  Legacy food manufactures have found success in all the same avenues of distribution and in the Dollar store channel as well. We have pontificated since 1991 that consumer prefer to assemble meals rather than making their meals from scratch.  In fact today consumer utilizing meal kit’s say they cook from scratch.

Here are some Meal Kit examples:

Kraft's Velveeta Skillets, a deluxe version of mac-n-cheese in a box with flavors such as Chicken Alfredo and Lasagna. Kraft Sizzling Salads dinner kits are not exactly your mother's "made from scratch" recipes.

Kraft directs consumers “to heat up some chicken with the marinade and toss a salad with the dressing”. Fear not Kraft provides extensive cooking tutorials online.

Kraft  provides a “video for the Chicken Caesar meal kit, a woman demonstrates how to squeeze the marinade over four chicken breasts in a frying pan. She then guides viewers through the steps of adding croutons and shredded cheese into a bowl of chopped lettuce. The finishing touch? Squirting in some Kraft dressing.”

General Mills  as a line of "Progresso Recipe Starters," which are pre-made sauces in flavors such as "Fire-Roasted Tomato" and "Creamy Portabella Mushroom" that can be a base for a variety of dishes.
Progresso's “sauces involve a little more work. For example, let's say you want beef stroganoff. All you need is two pounds of boneless beef sirloin, an onion, garlic, Worcestershire sauce and a can of Progresso's Recipe Starters in Creamy Portabella Mushroom flavor. The dish takes 35 minutes from start to finish, according to the recipe on the can’.

Campbell Soup has "Skillet Sauces" that can be mixed with fresh meat and veggies. Total prep time: 15 minutes.

Land O' Lakes has "Saute Starters," cubes of butter that contain olive oil and are packed with the right mix of spices to make a dish, coming in flavors such as Italian Herb and Lemon Pepper.”

Does your restaurant sell meal components To-Go?  C-stores and grocery stores now have hot ready-2-eat proprietary soups available daily. If success leaves clues sell meal components that can be bundled into a customized home cooked meal is one of them.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities and or a brand 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

Wednesday, February 13, 2013

At 4 PM: What’s For Dinner?



81% of American consumers are unsure about what’s for dinner at 4 PM every day!

Your customers are just beginning to think about what's for dinner. Eighty-one percent of American consumers are unsure about what's for dinner; the opportunity is yours for the asking. Consumers are looking for high quality ready to eat foods and ready to heat meals… I coined them as ready-2-eat and or heat-N-eat. Consumer trends point to this - what today's time starved consumer wants is to purchase meal components that they can bundle into a customized family meal that will please everyone without spending time cooking.

Food is Everywhere

At one time you purchased your food at the grocery store, channel blurring has created food to be everywhere! Consumers today have the opportunity to purchase high quality chef prepared ready-2eat and heat-N-eat food from independent restaurants, grocery stores, chain drugstores (Walgreens) convenience stores, chain restaurants and non-traditional food retailers the ilk of Amazon.com and food trucks. At the convergence of all of these new and legacy meal component points of distribution you find the Grocerant niche.
What is a Grocerant?
The grocerant niche refers to prepared food that is portable, ready-2-eat or heat-N-eat food that is deemed "better for you food". The consumers are finding grocerant niche food in grocery store deli sections including Whole foods, Trader Joes, Safeway Lifestyle stores, Central Market and Wegmans Market Café . Not to be left out, convenience store segment has grocerant pioneers in the brand names of Wawa, Sheetz, Rutter's Farm Stores, and 7 Eleven. Finally chain restaurants and independent restaurants around the world complete the circle of grocerants.
Successful foodservice operators today understand that differentiation in menu items and food products doesn't mean different, rather it means familiar with a twist; taking ordinary daily menu items, adding contemporary relevance. Then presenting, brand positioning and pricing competitively; these are the universal footprints of success found within the grocerant niche.

Consumers Want Food On Sale.

90 percent of people look for deals to get more value when making food purchases in new national research survey conducted by DiGiorno January 2013.

US consumers estimate that restaurant rewards program would increase their visit rate to a particular restaurant by average of 35%, according to new study; 65% would recommend restaurant more to others if that restaurant offered rewards program in a study by LoyaltyPlus January 2013

US millennials seem to be spending more money than other generations when it comes to dining out, industry officials noted as reported by Ginia Bellafonte of the New York Times as a percent of income January 2013.

I would like to introduce you to Threep.  Threep is a mobile application that rewards users for visiting your business in groups of 3 or more people.  It is consumer interactive and participatory, with real time consumer relevance, adding value to your brand, building sales with incremental group size, and leveraging Micro groups for Macro results.  Threep is a sales building tool that complements restaurant LSM programs. Threep is a platform enabling consumer choice and brand equilibrium.  Let your brand win.
Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Tuesday, February 12, 2013

Florida Fresh Food Retail Has Never Seen Such Competition.



Lobster bisque, Grilled Chick Breast with Tortellini and California Rolls a new Florida restaurant no it’s Walgreens.  Look out Publix, , Winn Dixie, Wawa and Whole Foods here come’s Walgreens.  50% of Americans over the age of 18 are single; restaurants have capitalized on that information for years, just look at the growth of QSR sector. That same fact 50% of Americans over the age of 18 is single has been the Achilles ‘heel of the grocery store sector.  

Walgreens the 68 Billion Dollar retail giant plans to exploit its trusted and valued customer relationships as it re-enters the fresh prepared food space once again.  Walgreens with a rich legacy of selling fresh prepared ready-2-eat food in store this time is targeting the Florida market with up to 50 additional fresh food stores adding to its base of 14 which obviously have proven quite successful.

Jim Jensen, merchandise manager for perishable beverages and snacks at Walgreens says “"You can go and get a prescription, but then not come back for 90 days,"…Food you eat every day. The idea is about frequency." 

The fresh food items are delivered six days a week and most have a “halo” of fresh and better for you around them.  Some of the best-selling items are fresh cut fruit and vegetables cups, wraps, salads and sushi.
In retail foodservice focusing on the customer is always the right recipe for success. More than a test market for Walgreens Florida represents the suburbanization of its fresh food program.  Targeting frequency Walgreens will garner market share from many.  Are you ready to defend you position within the ready-2-eat and heat-N-eat fresh food grocerant niche?

Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant