Ready-2-Eat Breakfast On The Run and its "better for you"

The evolving face of retail foodservice continues pointing to the success of the grocerant niche filled with ready-2-eat and heat-N-eat fresh prepared food.  In the NPD Group chart above you can see that breakfast sandwiches outrank coffee. That is the time that has ever happened since NPD began the tracking it in 1985.

In the case of the breakfast sandwich it is one step back and ten forward. Harry Balzer NPD’s noted researcher and international presenter said “ “The beauty of the breakfast sandwich is that you can get that 1950’s breakfast of eggs, toast, cheese and meat all in one and you can walk out the door if you want to.

One of the drives is Portability one of Foodservice Solutions 5P’s of food marketing. It is a driver because Americans are eating more breakfast meals in their cars than ever before according to Balzer, and author of the annual Eating Patterns in America.

Blazer said that “For breakfast we focus so much on coffee, which was always number one, but what has really changed in the America’s eating habits is the breakfast sandwich. When eating out, breakfast sandwiches now rank higher than coffee!”.

Here are some numbers from Balzer report “People are getting their sandwiches on the go, rather than making them at home. For the year ending November, 2012, 46 percent of all breakfasts (excludes morning snacks….just breakfast) ordered at a restaurant include a sandwich. That number includes breakfast sandwiches, 34 percent, breakfast wraps, seven percent and burgers/other sandwiches, four percent. By comparison, 42 percent of all breakfast meals ordered at restaurants include coffee. The importance of the breakfast sandwich continues to grow. It is the fastest growing item at restaurants for breakfast. In 1989, 23 percent of all breakfasts ordered from a restaurant included a breakfast sandwich (this includes traditional sandwiches ordered for breakfast). By comparison, coffee is shrinking as a share of breakfast; 51 percent of breakfasts purchased at restaurants in 1989 included coffee. 

I recommend that if you like this you should purchase a copy of the full report by contacting kim.mclynn@npd.com. If success does leave clues others edifying Foodservice Solutions findings is one of them. 

Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation 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

Consumers Increasingly Find Value in Ready-2-Eat and Heat-N-Eat Food.

There is an underlining change in how consumers see value in ready-2-eat and heat-N-eat fresh prepared grocerant food from Grocery Stores, C-stores, and Restaurants.  That value is being determined by a new set of metrics.  Included it those are: Healthy, Quality, Price, Speed of Service, and Appearance.  Just as important is where the consumer can consume the food. 

Consumer continue to be time starve, on the run, and multi-tasking in all day-parts.  They are simply allotting less time for a full service sit down restaurant. Today grocery stores, Convenience Stores and supermarkets and Restaurants offering To-Go Meals are winning. Below are what we found to be the most compelling reasons to buy ready-2-eat food or heat-N-eat fresh prepared food:

“Better for you”:   Healthy or less time

Quality:  Fresh in appearance and how it is presented in store and To-Go

Price:  in price value equilibrium (Time+ cost of food+ cooking skill set)

Portability:  On the run consumers want food that they can serve at home, work, soccer

If success leaves clues food retailers today that find develop a balanced branded broad approach to fresh food distribution beyond the traditional four walls will find success.

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

Dinner Should be Seamless and “Better for You”.

Consumers can and do make better choices about food and calorie intake.  In a survey recently released titled  Seamless' Healthy Delivery/Takeout Survey found that consumers are fast becoming more aware of making healthy food choices when ordering delivery and takeout versus eating in a restaurant.  Below are some of the key findings:

People are 10 times more likely to consume bread at a restaurant than when it accompanies delivery or takeout.

People are twice as likely to order an appetizer at a restaurant than when getting food delivered.

Only eight percent of all respondents eat dessert when ordering in or taking out versus one quarter that order at restaurants.

Nearly 40 percent of respondents said that they typically order side dishes at a restaurant versus 25 percent when ordering for delivery or takeout.

No longer are delivery and takeout only about pizza and wings. More and more, people are watching their waistlines when ordering in and taking out. In 2012, Seamless customers ordered salads four times more than pizza and 16 times more than wings.

The halo of “better for you” is expanding and food retailers must pay attention to these evolving trends. The grocerant niche filled with ready-2-eat and heat-N-eat fresh prepared food that is better for you is Booming.

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

What Restaurants Must Fix Operationally in 2013 By John Gordon

Restaurant sector challenges of negative same store sales comparables, consumer unease, rising food commodity costs and some magnitude of increased heath care costs emanating from Obama Care appeared in 2012. The same issues will be present in 2013.

But all is not lost. There are initiatives that can offset the negatives. Here are thoughts of what restaurants, both chain operators and independents, of all stripes, simply have to fix in 2013 operationally to meet these challenges. None of these opportunities are new news.

Restaurants have been working on reducing food and labor costs since the 1970s. It’s time now to look at other areas of the P&L as well as revenue maximization beyond price increases.

Revenue enhancement related:

• Unique Store level pricing: US national. zone, region or even DMA level pricing is a relic of the past, representative of a 1960s-1970s more suburban, homogenous US restaurant mindset. With development everywhere and a vastly stratified and diverse US society, why does the price in suburban Philly Bucks County PA need to be the same as in south Philly? It doesn’t. The rub comes in with massive television driven campaign single price points. YUM/Taco Bell has just rolled out its $1.49 grillers on television. Is that really the only price point that will work? Rarely does the promoted item mix exceed 20%, so 80% of the mix remains to be influenced by store level pricing. This route provides for revenue management upside and I’ll have a whitepaper on this topic out soon.     
• New beverage and dessert options needed:  the rise in water only customers and the falloff of soda sales s is epidemic. This is very noticeable at your local Chipotle (CMG), go in and check out how many customers just get water. But the industry is to blame, as there has been little to no change in carbonated sodas for years other than the new Coca Cola mix machines. What about: flavored waters and drinks around $1? Could a carbonated cranberry, cherry or vanilla fizzy drink be prepared with existing soda/drink/bar equipment? Yes. Could it be sold profitably for $1? Yes, especially that is aimed at water customers who now carry zero gross profit. Smaller desserts: Jack in the Box (JACK) has recently figured that out with its $1.00 brownie bites, for example. This might not work at a Cheesecake Factory (CAKE), with a $7 flagship dessert that is split anyway, but it could work in other concepts.
• Suggestive sell/upsell: in almost every restaurant type, but especially in chain operations, the order taker generally ends the transaction by asking “would you like anything else? This happens in QSR, fast casual and casual dining operations. Ban the phrase “anything else”, and replace it with….”apple pie?” (for QSRs) or “glass of wine?” (for casual dining operators).  Bar operators have it covered with…”would you like another”, and is often used. The trick is to get new customers.

Cost Containment related:

• Obama Care Health Care impact: adapt, stop whining. It’s here. The estimates from McDonalds, Wendy’s, Dominos, CKE restaurants and the like are in the $15,000 to $20,000 additional expense per store zone. Papa John’s was the high outlier, up to $100K per store.  Perhaps John was on a carbo high when he mentioned that. Of course, small pizzerias and huge casual dining restaurants will have different costs per unit. The effect will vary based on many other factors. Test something. We wonder if a two track wage scale might work: one higher base wage for no benefits due, or a lower wage for where payable.  To foil the invariable Fair Labor Standards Act (FLSA, 1938) challenge (The FLSA does allow for differential wages for medical so long as it isn’t workers comp medical expense involved), sweeten the pot for the lower wage tier employees that they get first dibs to higher hours and overtime since they are covered and won’t affect the 30 hours/week calculation. Or what about a registry to share employees to keep employees engaged and working but under the hours threshold? I’ve have an additional whitepaper on this later.
• We’ve mentioned before restaurant utility costs, especially electricity (too few HVAC thermostats and overly cooled dining rooms (since kitchens are hot all day) Could not a second rooftop AC unit and thermostat be added for the front of house that would be amortized quickly? Utility company experts say the payback could be less than two years.    
• Stop discrimination and avoid legal costs:  it’s amazing the number of chain restaurant operators, franchisees and independent restaurants that get caught in EEOC/Title 7 discrimination situations. Two multi-unit franchises (BKW, PNRA) in December 2012 alone. Big settlements, big legal costs, diversion of management time and attention. The federal anti-discrimination laws have been on the books since 1965, and the Fair Labor Standards Act has been on the books since 1938. Management must enforce fair and equal treatment of all customers and employees. For every dollar in legal costs, twice as many restaurant sales dollars must be generated just to offset the direct cost.   

Contact:  John A. Gordon Principal, Pacific Management Consulting Group
Email: JGordon@pacificmanagementconsultinggroup.com

Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Food Marketing Migration: Restaurant Customers on the Move

The success of ready-2-eat and heat-N-eat fresh prepared food has been documented, talked about and written about a lot 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 specifically chain restaurants.

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 within the halo of the brand. 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

Food Quality Never Takes a Step Back.

The grocerant niche is driving new competitive points for food distribution which are a step above consumer expectation in most cases.  Food quality never takes a step back these evolving new points of fresh food will continue to improve over time increasing industry competitiveness. Dunkin Donuts, McDonalds, and Starbucks, here comes The C-store sector. 

When you look at the menu items offered by these legacy conveniences store operators it is clear to see that the grocerant niche is a platform that is creating equilibrium.   In other words they are not discouraged or intimated by competition from any sector.

Non-traditional fresh food retailers understand that 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.

Food Retailing Never Take’s a Step Backward.  Consumers are dynamic not static always looking to save both time and money.  The grocerant niche is propelling new quality points of fresh food distribution and competitors that are well financed.

Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation 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

Cut You’re Food Budget Eat Out Tonight

If you thinking of going out for dinner tonight? You might just be saving yourself some money if you do.
In a new study by GoBankingRates.com that look at the cost of food found that “with rising food costs, the low prices of fast food value menus and special offers from restaurants makes it cheaper to eat out than to cook at home.”  Consumers like ready-2-eat and heat-N-eat bundled meal options, eating out is a very simple way to get them.

The United States Department of Agriculture finds that cost of feeding a family of four has risen from $601.50 in February 2003 to $830.30 in February 2013 that is a 38 percent increase in ten years.

It’s not just Fast Food Restaurants that can save you money “When comparing the cost of a 10 oz. rib-eye dinner (with soup, salad and asparagus) from Outback Steakhouse with that of the homemade version, Outback was $2.53 cheaper,” found GoBankingRates expert contributor, Stacey Bumpus. “And comparing seafood Alfredo (with unlimited salad and breadsticks) at Olive Garden to making it at home, Olive Garden was $3.79 cheaper.”

Times have changed from when many of you were growing up, I like most of you was taught to prepare food at home because it was the cheaper alternative to eating out.

Today however Bumpus  says “A few decades later, however, it appears that parents are no longer saving money by cooking at home,”… “With fast food restaurants continuously adding value menus and grocery costs rising, dining out for many families has become the financial preference.”  An one at which a family can save money as well.

Ready-2-eat and heat-N-eat fresh prepared meals that are homecooked meals can be more nutritious and healthful than the items you'll find on a dollar menu but eating out can save you time and, apparently, money too including from Olive Garden and Outback Steakhouse.

Outside eyes can deliver top line sales and bottom line profits.  Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Pizza Burger Delivered not yet But Burger King Delivers Whoppers

California here we come! At least that’s what Bob Stevens the first California Burger King Franchisee to offer delivery is saying! Located in Glendale, CA Stevens joins a growing number of Burger Kings regions that now offer delivery programs including Miami, Washington, D.C., and Houston, TX.  San Francisco will be the next city in CA offering delivery at 15 locations.

Non-traditional points of distribution for ready-2-eat and heat-N-eat food continue to evolve and consumers now have the option to order burgers from Burger King in California.  Restaurant chains have the ability with new avenues of distribution to add additional menu items that they may have never considered before. In the case of Burger King pizza or pizza burger?

Here is how the Burger King System works: “The system involves routing phone and online orders -- placed at http://www.bkdelivers.com -- to a centralized location, which sends the customer's order to the closest Burger King that offers delivery….

The food is prepared and packed in a container that is newly designed to prevent burgers and fries from getting soggy or cold on the drive. Locally, it's then delivered by one of five drivers to locations within a 10-minute drive -- with traffic -- from the store.”

Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation 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

The 5 Pillars of Ready-2-Eat and Heat-N-Eat Food Marketing

Grocerant Guru Steven Johnson at Tacoma, Washington based Foodservice Solutions® has been gathering retail food success clues since 1991.  Within the clues he discovered some universal commonalities from those commonalities Johnson developed, The 5 Pillars of Ready-2-Eat and Heat-N-Eat  Food Marketing.  The 5 Pillars are:

1. Product
2. Packaging
3. Placement
4. Portability
5. Price

If you are interested in learning how integrating the 5 Pillars of Food Marketing can edify your retail food products, brand, or restaurants while creating a platform for consumer convenient meal participation, differentiation and individualization contact us at: grocerant@q.com

Interested in Presentations, Key Note or Trade Show Event Speaking or Company Consultative Services contact:grocerant@q.com

Foodservice Solutions® specializes in global outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more visit http://www.linkedin.com/in/grocerant

Have you heard how The 65 Inch HDTV Syndrome is slowing restaurants growth.

Restaurant sector sales stagnation is due to evolving consumer eating styles and preferences.  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 some universal commonalities 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

When you are ready-2-eat it’s Starbucks for Lunch

Starbucks is not just Oatmeal! Breakfast or Lunch Starbucks just might be your next visit. Having proven that food sells at its units Starbucks is heading from breakfast to Lunch. The ready-2-eat niche is expanding once again with new fresh lunch offering from Starbucks including a new line of Salad Bowls and Deli Sandwiches available all day but focused on lunch.

This new menu launches today “at company-operated Starbucks stores in the U.S., with the exception of the Hearty Veggie & Brown Rice Salad Bowl, which will be available only at select stores… Each item is less than 450 calories.” Here are the menu items:

Chicken & Greens Caesar Salad Bowl;

Zesty Chicken & Black Bean Salad Bowl;

Hearty Veggie & Brown Rice Salad Bowl;

Egg Salad Deli Sandwich;

Turkey & Havarti Deli Sandwich;

Ham & NY Cheddar Deli Sandwich; and

Chicken Salad BLT Deli Sandwich.

In addition Starbucks will be offering “handcrafted sodas, including ginger ale, lemon ale and spiced root beer, in some units”  that is Differentiation, Individualization, Customization hallmarks of the grocerant niche and Starbucks.

Outside eyes can deliver top line sales and bottom line profits.  Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

U.S. Shoppers at the Bottom of Global List for Fresh Food Shoppers.

In the recent Nielsen Shopper Trends Survey study covering 54 markets around the world with a total sample size of 87,000 respondents. The survey was conducted online or with face-to-face follow-up in home interviews found: “fresh foods a very important driver in the shopping decision.”…

“Fresh foods continue to maintain healthy sales contributions at retail. In fact, fresh foods can comprise between 30-60 percent of total food, grocery and personal care expenses on average, depending on country and type of fresh product. Let’s face it, fresh foods are high-traffic volume boosters.” Regular readers of this blog know that ready-2-eat and heat-N-eat fresh prepared grocerant niche food works.

Nielsen Shopper Trends Study also found: “Asian shoppers were at the top of that range while U.S. shoppers were at the bottom as fresh foods constitute about 30 percent of grocery sales in the United States”.  The report was clear that it is fresh foods that set retailers apart from each other with a qualitative point of differentiation.

The study additionally identified , “ the top 10 drivers being enjoyable shopper experience; one-stop shopping; well-stocked inventory; good value for the money; pleasant store environment; excellent customer service; wide variety of products; high-quality fresh food; wide range of fruit and vegetables; and high-quality premium brands.”

Fresh food globally is a high-traffic builder the study found as the “average shopper heads to a market 2.5 times per week to buy fresh foods. Shopping trips are most frequent for the sub-category fruits and vegetables sector at an average of 3.2 times per week.”

Customer migration in the U.S. is underway as consumers are in the process of switching their buying locations.  The Nielsen survey, found “shoppers are showing a slight trend away from traditional supermarkets and more toward supercenters and club and warehouse stores”.

Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation 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