Tuesday, February 4, 2014

Starbucks, Millennials, Grocerants and Success

Retail food merchant extraordinaire Howard Schultz, president and CEO of Starbucks stated he sees a “seismic shift” to online shopping.  So concerned was Schultz he has reorganized Starbucks leadership team.  His concern was based on retail research indicators (and I think SBUX sales numbers) pointing to the fact that legacy brick and mortar retail stores locations are at an “inflection point” in losing traffic to e-commerce shopping. 

Starbucks is one of the best food merchants. Starbucks has created a customer focused platform of product customization, convenient meal participationdifferentiation and individualization according to Foodservice Solutions® Grocerant Guru™.  When Starbucks detects a “seismic shift” an “inflection point” the team at Foodservice Solutions® agrees and understands.  That shift is occurring and in larger part driven by activates within the Grocerant Niche including new non-traditional points of fresh food distribution.
Who is Helping Drive Change
The influence of Millennials can no longer be denied.  Millennials which represent 22% of the U.S. population today are fast approaching their “prime” spending years. Millennials grew up with fast internet access everywhere, mobile technology, and are now engaging and demanding a food focused seamlessly integrated life style.  In a recent study titled The Why? Behind The Buy found “65% of Millennials say losing this phone or computer would have a greater negative impact on their daily routine than losing their car.”  Are you willing to give up your car? Soon Millennials will out spend Generation X and the Boomer Generation.

That same study found that young shoppers are adapting to new food trends including buying Ready-2-Eat and Heat-N-Eat fresh prepared food.  That is something all food retailers need to pay particular attention too. In fact that study found that in the past 30 days:

Bought Home Prepared Foods  GenY / Mellennials 78%  Gen X only 68%, and Boomers 60%

Ordered Food From A Restaurant for Pick-Up / Carry-Out in the past 30 days
Gen Y / Millennials 78%, Gen X 72, and Boomers 58%

Ordered Food From A Restaurant for Delivery in the past 30 days
Gen Y / Millennials 67%, Gen X 57, and Boomers 36%

Regular readers of this blog know that the evolving success of the Grocerant Niche is the ability of discovery for Millennials.  That discovery includes points of distributions, new flavors, and technology.
That discovery is a result of an increase in multi-generational households, multi-ethnic households and technology. (Note: our white paper The 65 Inch HDTV Syndrome can be found on our blog).

What is evolving fast is how and why consumer eat, and prepare meals at home.  Channel blurring is not in the minds-eye of the consumer.  Channel blurring is only in the minds-eye of Neanderthal brand mangers that do not understand the concept of share of stomach

Proper understand of share of stomach is more important for long term product, brand, and company survival than ever before.  Today, Eating Out, may mean Eating In. Starbucks is a great food merchant because they are focused on the evolving consumer. Where is your food sold and where is your food eaten?

Visit: www.FoodserviceSolutions.us  if you are 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 or you can learn more at Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

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