Smaller Family Size Not Snacking Drives Single Meal Shifting

The United States census reports that 50 percent of the U.S. adults over the age of 18 are single.  Foodservice Solutions® Grocerant Guru™ attributes smaller meal purchases are a direct link to family size.  Snacking is not a trend in a recent survey conducted by Foodservice Solutions® found food consumed by singles were smaller and at more intermittent time periods.

No one can be surprised that more and more consumer are eating alone when 50 percent of the U.S. population over the age of 18 are single.  It is the driving factor in marketing, positioning and selling of Reasy-2-Eat and Heat-N-Eat fresh prepared grocerant niche food.

While the Food Channel’s rating are soaring to new highs, no one wants to buy the food, or clean the kitchen while cooking for either one or two people. What is new is a focus on “Better for You” foods, and increasing awareness on both preparation and sourcing.

The search for authenticity in food has provided a platform for food trucks, Pop-up restaurants, coffee shops and drive-thru of all sorts.  With an increase in multi-generational households, multi-person households with varying work schedules eating alone continues to rise.

Ready-2-Eat and Heat-N-Eat fresh prepared food for “immediate consumption” aka grocerant niche food will continue to rise in popularity and in points of accepted distribution.  We anticipate Drug Stores, C-stores, and grocery stores will continue to increase distribution of quality Ready-2-Eat and Heat-N-Eat fresh prepared food.

www.FoodserviceSolutions.us  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 since 1991

Starbucks Leadership Success Evolving with Customer Relevance

In 1971 the first Starbucks opened in Seattle at the Pike Place Market that was 43 years ago.  Today, as they race closer to the 50 year anniversary Starbucks looks more like a company of tomorrow than a company of yesterday.

During the first 20+ years CEO Howard Schultz refused to sell food.  Starbucks always sold non-food items that complemented and extended the Starbucks experience and brand yet Starbucks shied away from food.  In fact with ease you can find article after article with definitive statements from Schultz that Starbucks would never sell food.

Success does leave clues and Starbucks customers were evolving and Schultz listened then began selling food. Selling food did not go so well at the beginning it may have been because the effort appeared half-hearted.  That’s all changed.

During presentations Foodservice Solutions® Grocerant Guru™ asked the audience “if your company was 43 years old, had 20,510+ units operating around the world in the current prolonged economic conundrum how would your sales be up or down?” The vast majority of the audience responds with a resounding DOWN. Well, we all know today that.  Starbucks has become a food & beverage merchant evolving an industry, consumers, and suppliers. Here are some of the recent numbers that edify our view Starbucks is a company of Tomorrow:

1.       6% Global Comp Growth Drove Revenues to $3.9 Billion

2.       6% Global Same Store Sales Growth

3.       U.S. Growth a Positive 6%

4.       Non-traditional channel development growth up 10%

5.       Consolidated operating income up 18%

6.       Earnings Per Share up 17%

How long has your restaurant been in open? Are your sales growing at 6+ percent? When your customers evolve you company must evolve as well. Howard Schultz is to be commended for both following the consumer and leading an industry by changing who he sells, what he sells and where he sells food, beverages, and products.

The Ready-2-Eat and Heat-N-Eat fresh prepared food aka grocerant niche has no better example of success than Starbucks.  Starbucks ability to adapt and evolve with consumers and willingness to extend its brand and products within our current Omni-channel retail is an example for all.

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson at www.FoodserviceSolutions.us    His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. 

Bread is Back for Breakfast

Foodservice Solutions® Grocerant Guru™ found an increase in “Hand Held Food for Immediate Consumption” for breakfast stating “Safeway, Whole Foods, Wawa, Sheetz, Del Taco are joining Taco Bell in new AM special offerings all have breakfast items that are hand held and targeted at time starved consumers.”  Times have changed in a new study by Technomic they found that 63% of Americans regard skipping breakfast as ‘unhealthy’. 

While most of us have heard about the “Waffle Taco” many more are eating breakfast on bread. In a study by Packaged Facts titled Foodservice Breakfast Trends in the U.S.  found that “Flatbread breakfast paninis are on the rise, …. Tim Horton’s and Dunkin’ Donuts are just two chains promoting flatbreads. Cosi, a fast casual eatery with 121 units, just launched a new line of thin multigrain flatbread sandwiches with a lower-calorie profile than regular sandwiches.”

Hand Held Breakfast is fast and getting “better for you” according to Foodservice Solutions® team.  If you’re thinking about joining the breakfast rush here are six findings from the Package Facts study for you:

64% of breakfast foodservice customers get coffee with breakfast

50% of consumers seek out bold flavors

39% of breakfast menu items are baked goods

26% of consumers are motivated by convenient locations

20% of consumer desire foreign foods

12% of breakfast menu belongs to juice

One of Foodservice Solutions® 5 P’s of food marketing is PORTABILITY and during the AM day-part portability combined with speed can make or break your success. Bread is back and while C-store have become savvy with coffee, a breakfast sandwiches differentiated by bread carrier can turn trial in to customer adoption. 

www.FoodserviceSolutions.us  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 since 1991

10 Clues for Food Sales Success Foodservice Solutions®

The Ready-2-Eat and Heat-N-Eat fresh prepared food niche continues to grow with new-nontraditional locations, year over years same store sales growth, and new customers.  In order to sustain the successful momentum that many retailers have found; Foodservice Solutions® Grocerant Guru® recommends that retailers integrate Foodservice Solutions® brand building clues into their Ready-2-Eat and Heat-N-Eat products and brands. 

Purpose.  Understand why you are there. Consumer contemporized relevance. Most successful brands are inclusive and include values greater than themselves. Today in the Ready-2-Eat and Heat-N-Eat space it is a lifestyle, a philosophy, an emotion a point in time today that means “better for you”.

A story. Most major brands have a story. Examples: if you like McDonalds restaurants you might be familiar with the story of Ray Kroc or if you use Facebook, you probably know how, where, and when Marc Zukerberg created it.

Consumer interaction. When your Ready-2-Eat and Heat-N-Eat food is first starting out, don't kid yourself into believing that your marketing efforts are 'brand building' efforts. They're not because to build a real brand, you have to have an extensive track record with consumers. Consumer will build the brand and the story for you.

Trust. When you've consistently delivered for your customers long enough, you'll gain the type of trust that many brands have. Would you buy gas from BP today? Maybe so, but how long do they have to rebuild that trust?

Consistency. When a consumer chooses a product or service because of brand association, he or she is buying an expectation. Never try to manage expectations.  The expectation must be met time after time.

Differentiation. Expectation is often borne of differentiation. Many brands offer products and services that are commodities but they're successful when developing some differentiation for their products and services that consumers are sold on.

Imitators. Imitation is the sincerest of flattery and you're probably not a 'brand' until you have competitors trying to copy you. Do what you do best and lead your niche don’t follow.

Market leadership. Top brands are usually looked at as leaders in the markets they compete in. Own the space, and understand why you do. Research, consumers, and messaging are key to understanding.

Grow. The best brands are flexible and capable of reshaping and reinventing themselves and their messages over time. Consumers are not static! Your brand must be dynamic and grow, change and adapt over time.

A strong marketing presence. The information super highway is evolving; your message must follow the traffic. Don’t get stuck on the road less traveled. You’re products need to be in growing channels with consumer relevance. Don’t get stuck in a store less shopped.

www.FoodserviceSolutions.us  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® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  

Retail and Restaurants are finding Omni-Channel Fresh Food Success are You?

Food consumers are now Omni-Channel consumers. Is your food company prepared to succeed in 2014, 2015 … 2020? Here are some of the advantages to entering or expanding your business with customer relevance moving forward:

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?

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 these new competitive threats?  Contact Steven Johnson Grocerant Guru at: www.FoodserviceSolutions.us

Amazon’s Milk-Truck Routes a Building Block of Success

Amazon is doing nothing new  delivering Milk, Bread, Lasagna, Club Sandwich and a New Phone, Amazon to delivery what consumers want, when the want it. Milk trucks are a stable in many neighbourhoods. Amazon is simply doing Milk Trucks Bigger and Better than anyone ever.  Foodservice Solutions® Grocerant Guru™ has touted Amazon’s entrance into grocery delivery as the ultimate “last mile solution” on this blog beginning in 2009 as regular readers know.  Amazon can establish according to Foodservice Solutions® “Milkman like routes” delivering what you want every day.

American Express had the successful marketing campaign “Don’t Leave Home Without It”, Amazon has the next step “Don’t Leave Home” targeting young parents, employees working long hours and seniors.  The Wall Street Journal (the paper of record) is now reporting that “Amazon is investigating the possibility of using its own trucks to transport packages to users….The company is testing its own “last mile” delivery system in San Francisco as a means of streamlining its shipping pipeline to users.”

With ongoing testing of Amazon Fresh and Amazon Spotlight, Amazon may have found a way to deliver direct to your door at home or work breakfast, lunch and dinner.  The new test service will allow Amazon to “consistently deliver packages to users the same day they’re purchased, as well as let the company dictate its own delivery schedule, including night and weekend package drop-off. That could help further drive purchases from consumers who might otherwise turn to physical retail outlets in order to get items quickly.”

When you consider the additional consumer trust, reliability, and visibility Amazon will garner with such a program it will in fact edify Amazons leadership in retail and foodservice. According to Amazon “It is a program which is going to revolutionize how shipments are delivered to millions of customers.” We agree and think food retailers must re-evaluate market, focus and positioning. Outside eyes can drive inside results.

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  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. www.FoodserviceSolutions.us

Airport Food Blending Fresh, Local, and National Food Retailers for Success

At the intersection of local consumers, international travelers and fresh food is Detroit’s Wayne County Airport.  Greg Hatcher, Wayne County Airport Authority’s director of concessions confirmed that the Detroit Airport concession program when remodeled will include 25 new food and beverage outlets.

Foodservice Solutions® Grocerant Guru™ Steven Johnson was excited that Hatcher and the Wayne County Airport Authority approved  Plum Market (A Grocer) with Zingermant’s Deli. Johnson stated “this reinforces the success of and extends the reach of the Grocerant Niche once again”.

Traditionally grocery shopping and airports aren’t synonymous, and most travelers don't think groceries and airports. Worry not, we are talking Ready-2-Eat and Heat-N-Eat  prepared foods and snacks, and not so much entire box of cereal, bag of coffee, or can of soup. 

Mingled in with traditional legacy restaurant brand food concepts PF Chang’s China Longhorn Steakhouse Potbelly Sandwich Shop, McDonald’s, Bruegger’s Bagels, will be  Plum Market and Zingerman’s Deli which are  “beloved Michigan/Ann Arbor area favorites, well known for locally-sourced natural, organic, and specialty items found in a high-end gourmet market. Famous Zingerman’s made-to-order sandwiches and bakehouse favorites, along with Michigan wines and craft beers”

Foodservice Solutions® Grocerant Guru™ believes Detroit is “simply following consumer momentum, meeting the needs and expectations of consumers today, demanding Ready-2-Eat and Heat-N-Eat fresh prepared food” 

Hatcher’s goal is clear he is striving for customer relevance.  He stated “Branded concepts are important so travelers that may not be as familiar with (a certain operation) can gravitate to the brands they know. But, there’s a balance between strong brands and local presence, (and) making sure that people understand what Detroit is all about.” 

Success does leave clues one clue is Convenience Stores, Grocery Stores, and Drug Stores fresh Ready-2-Eat and Heat-N-Eat food that is branded is welcome everywhere.  Where are you selling fresh food?

www.FoodserviceSolutions.us  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 since 1991

Yum Brands Looking more like Yesterdays Brand than Tomorrows.

Yum Brands succumbs to industry dynamics capitulating market share in U.S. one again with U.S. same store sales declines at Pizza Hut of 3%, KFC 4% and Taco Bell at 1%.   One thing is perfectly clear Yum Brands is nothing like forty three year old Starbucks. Yum Brands has three brands losing U.S. customer relevance.

The age of a brand albeit Darden, Yum Brands or Starbucks does not make a difference when speaking about customer relevance and positive same store sales growth. Starbucks a forty three year old company continues to look more like a consumer relevant brand of tomorrow than a legacy brand of yesterday. In today’s Ready-2-Eat and Heat-N-Eat fresh prepared food Grocerant World Starbucks fits right in. Yum’s KFC one of the original grocerant niche (meal replacement back then) companies has lost its customer, grocerant niche, positioning, and focus.

Starbucks continues to post positive same store sales and positive customer counts, all the while expanding the brand in new channels.  There is one thing that Starbucks and McDonald’s have that’s proven successful, that is a proven formula of success steps:  Build, Measure, Learn, and Repeat.  Simply put Starbucks and McDonald’s learn from miss-steps and move forward with brand focus, consumer relevance, while globally implementing integrated marketing plans.  

Yum Brands seemingly has spent five years focused on China, China, and China building stores and reacting to miss-steps or China specific industry problems. During that period U.S. store base has capitulated customer relevance and market share in every branded category. 

Restaurant sector customer migration continues while many legacy restaurant chain operators have a blind-eye to new competitive forces evolving within the Ready-2-Eat and Heat-N-Eat fresh prepared food niche.  C-stores and Grocery Deli’s foodservice offerings continue to garner share of stomach via restaurant customers.  Many legacy food industry analyst only compare restaurants to restaurants while consumers think only of their “STOMACH and WALLET” according to Foodservice Solutions® Grocerant Guru™. 

Companies the ilk of Wawa, Sheetz and Rutter’s Farm Stores are expanding fast, each focusing on fresh food as an advantage. 7 Elevens and Casey-s General Store are both exceeding goals with fresh prepared pizza sales.  7 Eleven extends its reach in food within chicken category regularly. HEB, Central Market, Whole Foods, and Trader Joe’s success is attributed to restaurant quality Ready-2-Eat and Heat-N-Eat fresh prepared food.   Outside eyes can provide inside results. Is your brand positioning for yesterday or tomorrow?

Success does leave clues and the battle for fresh prepared food sales is in fact a battle for share of stomach that Non-traditional fresh food retailers are winning today.  McDonald’s and Starbucks are winning as well for they utilize a proven formula of success steps:  Build, Measure, Learn, and Repeat.

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

Legacy Food CPG Brands Rewriting How Too Sell

Food companies are evolving slowly in search of consumers. Legacy companies that have established value for their brand and products have found sales slipping while brand recognition and brand value have not diminished.  Puzzled, they focused new research on the consumer and found “The Customer Has Move” both in preferred points of shopping and communication according to Foodservice Solutions® Grocerant Guru™.

In a new study Growth Strategies: Unlocking the Power of the Consumer,” by the Grocery Manufacturers Association found “more than 40% of CPG companies plan to sell products directly to consumers this year, finding direct-to-consumer effective for testing new products and growing their consumer base.” What do you think should restaurants sell meals direct to consumer?  Do with delivery?

Clearly when 40% of CPG Brands Plan to sell products direct-to-consumer by passing legacy points of distributions continued sector disruption is to be expected.  Today, digital channels and mobile are important in the direct-to-consumer process, and are rewriting the rules of retailing for CPG brands. The trick is finding the balance between legacy brand values and today’s consumer while providing innovative shopping experience can very well increase loyalty and profitability with customer relevance.

The new technology shortens the path to purchase. Users can easily go from watching a how-to video to finding a retailer who carries the featured product and making a purchase. Now, shoppable videos can translate into customer relevance, a referral tool, entertainment, and sales. Can C-stores and grocery stores leverage shoppable videos? Many do which do you like best? 

www.FoodserviceSolutions.us  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 since 1991

Take-Out Takes Off Technology Drives Disruption Once Again

Competition for customers heats up as home cooked meals go on-line for or sale. Chefs are now able to cook from home, sell meals, watch the kids, pay the bills all while cooking dinner for the family! Technology continues to ratchet-up the competition in the retail food space empowering chefs to build a reputation one customer at a time without the expense of opening a restaurant. Better yet business travelers can get a home cooked meal.

In Copenhagen there is a website that is turning private homes into Take-Out restaurants. It lets users advertise what they are cooking, when and for what price.  The site, Dinnersurfer.dk, is referred to as a restaurant version of the popular lodging site Airbnb, on which homeowners make their spare rooms or unoccupied dwellings available to paying lodgers for a fee.

Airbnb, is a big hit with consumers and Wall Street.  With its last round of funding Airbnb was valued at $ 10 Billion Dollars. There is no doubt Airbnb will enter the home cooking niche as well.

The advantages for consumers they in most cases pay less than if they had gone to a restaurant with the added benefit that many of the homemade dishes may be healthier than the greasy high calorie fare typically available at take-out counters.

Ana Teresa Salas, a 32-year-old consultant from Copenhagen offers meals on Dinnersufer.dk and said
"Sometimes I only put one serving up for sale, sometimes up to 20. It depends on what I'm making and how much time I have," …"It sounded exciting. I make food for my family every day anyway, and I always make too much," said Salas, who sells her food on the website two to three times a week.”

"On weekdays I try to make food that's healthy, without too much starch and fat," she added…"When I make healthy dishes it's mostly women, and when it's pasta and so on it's mostly men," she said.

The retail food space is evolving fast.  Drug stores, Liquor stores, Home Chef’s, and internet star-ups are all targeting the Ready-2-Eat and Heat-N-Eat fresh prepared food space.  Airbnb, JustEat, and a plethora of others are creating new points of distribution.  Is your company asking the right questions when developing your five year plan? Do you need out-side eyes?

 
For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  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. www.FoodserviceSolutions.us

Fresh Prepared Food, High Technology, Fast Service and Walmart

What’s for lunch when you are hungry and in a hurry? Are you on your way home and need something quick for a family dinner?  At the intersection of Ready-2-Eat or Heat-N-Eat fresh prepared food, mobile technology and the world’s largest food retailer you can find the answer it just might be Walmart.

We all know the Walmart Supercenters, Walmart’s Neighborhood Market the Grocery store now Walmart is expanding the classic Spoke-N-Hub retail template into convenience stores completing the circle, becoming closer to customers with a new convenience store concept called Walmart To Go.

Customers don’t like getting trapped the large footprint supercenters shopping when they only need one or two items.  They don’t like getting trapped in a grocery store just for one or two meal components are needed to complete the family dinner.

Trapped no more while Walmart To Go opened a month ago. Just this week we learned that Walmart To Go  has an ordering app that is food-service focused. “The free system enables customers to order and pay for their meal ahead of time for a speedy pick-up, a definite boon at lunch. Or they can grab dinner while stocking up on groceries and doing a fill-in shop until the next time they can hit a full-sized Walmart”

One of the hallmarks of the grocerant niche is bundling meal components into a customized family meal.  Here are some of the choices found on the app by Peter Romeo:

“Gourmet Hot Dogs, today’s special, a platter of dry-rubbed and smoked pork ribs, be more satisfying? “We recommend the ribs dinner,” says the app I’m using, which notes the price is only $6.47, and that includes two sides.” I have a choice of nine, ranging from Baked Potato Casserole to Crab Salad. I can try any or all of the others for an extra $1.29 each. Then again, I could always pop for the pizza, a steal at $3.49 for a 7-inch pie.”

Extending Walmart’s brand into a complete Spoke-N-Hub template increases fresh prepared food retails competitiveness. While industry elites chide my notion that Walmart will become a key player within the Grocerant niche; I remind them they chided my notion that they would become the largest food retail in the U.S. as well.  With a focus on branded food, quality fresh food, and price; Walmart will again reset the Price + Service + Quality = Equilibrium once again.

www.FoodserviceSolutions.us  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 since 1991

McDonald’s Quality Differentiation Will Win Breakfast Battle

The battle for consumers in 2014 is not a battle over breakfast but a battle over share of stomach. While breakfast is the current focal point. QSR leaders all must be mindful of the expanding success of fresh prepared food in both grocery stores and convenience store sectors. 

Taco Bells facile TV advertising can’t hide the fact that McDonald’s average sales volume per store is $1 million higher than the average for Taco Bell.  Simply put the reported $50 million dollar advertising campaign Taco Bell launched cannot be sustained. Then what?

The campaign may drive trial, for Taco Bell but will not diminish the brand value of the Egg McMuffin or McGriddle both unique category leaders copied by many, mastered by few. Taco Bell Franchisee's must be mindful trial is not adoption. For Taco Bell the cost of the big breakfast roll-out will come in months 4 through 12. 

McDonald’s is expected to have completed the roll-out of new “high density kitchen tables” increasing throughput by mid July 2014. Once the “high density kitchens tables” are in place look for McDonald’s to begin serving many breakfast items all day long.  Once again stifling Taco Bell and creating additional points of distribution for breakfast items that Grocery Deli’s and Convenience stores are not equipped to deal with in fresh prepared food. 

Remember breakfast is a hot category, Americans made 12.5 billion restaurant visits for breakfast last year, making the morning meal the only daypart showing traffic growth for the third consecutive year, according to NPD Group. In-addition with beef prices on the rise, breakfast offered all day long creates a platform for increased consumer choice creating both calorie and pricing flexibility.

www.FoodserviceSolutions.us  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 since 1991

Trader Joe’s Great Brand Positioning Drives Sales

When the United States Census Bureau first released numbers that showed in the United States, that of citizens that are 18 years old or older a full 50% are single, no one at Trader Joe’s was surprised. Trader Joe’s does it homework, understands consumers and what they want.  Trader Joe’s had researched consumer and did not want to sell 14 chicken breasts or 14 pork chops to a single person.  They knew single consumers of which 50% are they did not want 14 chicken breast!

Trader Joe’s was first considered a quirky unique store with personality but not much of a threat to legacy food retailers by industry insiders and grocery trade magazines. Trader Joe’s today has turned into a juggernaut. Food industry researcher Package Facts say’s that Trader Joe’s sales per square foot are $1,723  Whole Foods comes in at $973 per square foot compared to and industry average of $521. 

Leading the industry in sales per square foot at $ 1,723 is remarkable considering that they have only around 400 units and are not-quite a national chain yet either. Trader Joe’s success comes from solid brand positioning and is done without loyalty cards or TV Advertising.  Regular readers of this blog know we think loyalty cards are nothing more than a crutch for poor brand positioning.

When Foodservice Solutions® team conducted a recent survey they found that in-store shoppers were evenly divided between single and married shoppers at Trader Joe’s.  Additionally we found that the in-store shoppers were equally divided by age those over 50 and under 50 years of age. The one universal commonality no one was looking for 14 Pork Chops.

Trader Joe’s like it sister company Aldi stocks the store mostly with private label (Trader Joe’s) branded product.  Only about 5% of the products in-store are branded products from other companies. One trend that is clear is consumer like Trader Joe’s small packed servings size of both Ready-2-Eat and Heat-N-Eat food.

Consumers when questioned think that Trader Joe’s labeled products are Branded Products. Consumers do not consider them private label products. With sales over two times the industry average per store clearly as a brand Trader Joe’s is a success clue.

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

Are Restaurant Customers Migrating to 7 Eleven?

7 Eleven is given retail chicken companies an old fashion licking.  As KFC struggles to find a way to rekindle it’s brand magic and garner back even a little  market share, Popeye’s and 7 Eleven do not have that problem.  Over the course of the past five years 7 Eleven has aggressively tested, launched, and found success with both Ready-2-Eat or Heat-N-Eat food.

It looks as if 7 Elevens has found a new winning grocerant niche Ready-2-Eat product with its new Chicken Dippers. Chicken Dippers are100% White Meat Pieces perfect for most any day-part from lunch, dinner, or snack.  With over 50,675+ global retail outlets 7 Eleven customers have embraced its Ready-2-Eat chicken from its Chicken Breast Tenders, Chicken Wings, and now Chicken Dippers.

7 Eleven “Chicken Dippers are pieces of 100-percent, high-quality white-meat chicken with no fillers that are lightly breaded in a tasty coating and served with a choice of Ancho Chipotle, Ranch or Honey Mustard dipping sauce. A cup-holder in the specially designed Dippers packaging helps keeps the sauce from spilling. Six "dippers" and sauce are value-priced at $1.99 at participating 7-Eleven^® stores.”

In the United States  Chicken Dippers are part of 7-Eleven's proprietary hot-to-go foods currently available in more than 5,200 of 7-Eleven's 7,800 U.S. stores. They are heated in Turbo Chef ovens, just like the company's whole and slice pizza, chicken tenders, chicken wings, mozzarella sticks and mini tacos.

Kelly Buckley, 7-Eleven vice president of Fresh Food Innovation "The Chicken Dippers proved so popular during limited-time in-store tests that store operators asked to keep them at the conclusion of the trial period," We asked are restaurant customers migrating to 7 Eleven?

"Millennials don't observe a three-meal-a-day schedule, but rather consume a mix of meals, snacks and mini-meals throughout the day as does the generation behind them," Buckley said. "They are busy as kids, and life has gotten no less hectic for them as adults. Kids, teens and 20-somethings are the biggest snackers.  Our menu has been evolving to include higher quality, value-priced smaller portions, mini-sizes and snacks that appeal not only to Millennials, but also kids and women as well." Chicken is viewed as a “better for you” product by both Teen and Millennials. 

www.FoodserviceSolutions.us  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 since 1991

Aldi Differentiation with a Twist.

At Aldi high quality for less time and money works garnering customers daily.  Publix, Safeway, Marsh, Fairway, and Smith Supermarkets once the mainstay of the American Grocery store shoppers are finding one relatively new competitor that may change how and where consumers shop for groceries. Aldi is the company, currently with 1,300+ grocery stores in 32 states announced plans to open 650 new units over the next five years.

Aldi brand model has consumer relevance with a heavy focus on Freshness, Food Quality, and Price.  In fact Aldi is forcing legacy grocery stores to rethink their outdated model. Aldi is creating the undercurrents of change within the industry.  These changes are the most dramatic since the 1940’s according to leading industry analysts.

Industry research firm Packaged Facts found that "Today the threat is spread out among all retail channels, including drugstores, dollar stores, limited assortment chains, and — the elephant in the room — e-commerce."  Foodservice Solutions® Grocerant Guru™ believes that “Aldi may just be the elephant in the room that all U.S. grocery stores should fear.”

Foodservice Solutions® asked Why Aldi here is what we found:

1.       Streamline Shopping Experience Aldi keeps prices low by offering a fewer branded items, in fact they carry just 5% of the inventory of a traditional grocery store requiring less space, creating a platform a “quick-trip” in and out.

2.       Private Label Food Aldi’s “house brand” food products are rated by consumers as meeting national brands or exceeding them in both taste and quality.

3.       “Delight Index” Market Force Information a leading industry research firm places Aldi high on its “Delight Index” with companies the ilk of Trader Joes, and Whole Foods.

While consumers are shopping for Ready-2-Eat and Heat-N-Eat fresh prepared food across multiple channels Aldi has found a way edify the consumer shopping experience, save time, money and add freshness into its service.  Aldi understands that differentiation does not mean different in food retail, it means familiar, but with a twist.  Aldi has the right twist for continued success.

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

Food Battle over Share of Stomach

Chain restaurants are now battling for sales with Grocery stores, C-stores, Liquor stores, and Drug stores. Legacy food retailers risk being marginalized by new concepts with smaller footprints, lower cost of goods and faster service.  Food retailers must understand the new dynamics in the industry and react properly in order to accelerate growth.  The focus is on the Grocerant niche.

Here is what we understand; consumer discontinuity in food retailing began in 2005 and continues. New points of distribution are growing, with retail outlets becoming smaller in size.  Nielsen in a new report finds “The underlying trend of shoppers moving away from larger to smaller stores continues. …Historically, traditional convenience stores were used for immediate or ‘distress’ purchasing, however,”  Today the change is accelerating driven in large part by major supermarkets around the world investing heavily transforming C-stores with contemporized relevance.

“The future has already arrived; it’s just not evenly distributed.” A quote made famous by William Gibson sure comes to mind don’t you think.  Fresh prepared “better for you” food and food options that are Ready-2-Eat or Heat-N-Eat continue driving the grocerant niches rapid success.

In the United States successful convenience store operators the likes of Sheetz, Rutter’s, and Wawa once notable regional players are now getting squeezed a bit by both 50,000+ unit 7 Eleven entering the fresh food meal niche and 1,700+ unit Casey’s General Stores who continues to drive sales and frequency with fresh prepared food. 

Many legacy restaurant companies the ilk of Darden and Brinker will undergo additional scrutiny in order to find a repositioned niche that will sustain them over time.  Legacy grocery stores that are seemingly stuck in the middle will simply fade away.

Wal-Mart’s supply chain advantage and industry reach will provide advantages, but won’t be enough to hold off Aldi or WinCo.  The added points of fresh prepared food distribution in the retail channel offered by Walgreens and Rite Aid will renew the local neighborhoods focus and rekindle community sprit garnering share of stomach from all other sectors.

William Gibson quote: “The future has already arrived; it’s just not evenly distributed.” How many of you are prepared for 2010.  If you have been waiting to see what’s next?  If so you might have just missed the bus.

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

Retail Foodservice in Search of Millennials

Food retailers are search for new customers with 90 Million plus consumers between the age of 18 and 36 milling around outside U.S. restaurants it is by far and away the most sought after group of customers. These consumers are called Millennials and are in search of food discovery, value, and a social experience.  They are resetting the price, value, service equilibrium for restaurant operators.

Are Millennials important for restaurants? In” A 2010 report from Oracle, that focused on the banking sector, estimated that Millennials’ purchasing power will reach $2.45 trillion next year and $3.38 trillion—more than that of the Baby Boomer generation—by 2018. Longer-term, Millennials seem like too big a demographic for restaurants to ignore.” The answer is very important. Now back to the formula.

The old formula was: Price + Quality + Service + Portability = Value .  That formula has evolved with Millennials today Foodservice Solutions® Grocerant Guru has reevaluated, calculated and evolved the formula with Millennials and here is the new formula:  Price + Quality + Social + Portability = Value.

Retailers seeking additional incremental value from Millennials must be Constantly Changing Menu items enabling Millennials to Discover Seasonal Relevance, Authentic Sustainability with Creditability.

In a recent study of 2,000 Millennial-aged U.S. consumers titled “Understanding Millennials” conducted by the Hartman Group found:

1.   55 percent prefer communal tables at restaurants.
2. 68 percent ask friends before selecting a restaurant.
3. 87 percent will splurge on a nice meal even when money is tight.
4. 40 percent will order something different every time they visit a restaurant.
5. Millennials eat out the most frequently at lunch
6. They tend to eat four smaller meals a day at non-traditional times.
7.  30 percent eat foods that are certified organic (as compared to 21 percent of Gen X-ers and 15 percent of Boomers).
8. They prefer whole foods over processed food.
9. They will spend more on ethically sourced meats and farm-to-table experiences.
10.  80 percent want to know more about how their food is grown.
11. Food companies among Millennials’ top 10 most-trusted brands: Whole Foods, Trader Joe’s, Ben & Jerry’s, In-N-Out Burger.
12. When shopping in grocery stores, Millennial foodies spend more on premium ingredients and are more likely to opt for small-batch handcrafted beers and artisanal cheeses than the big brand names.
13. Custom food options, such as the 87,000 possible drink combinations that can be had at a single Starbucks unit, are seen as a need, not a luxury. 
14. It’s just not about nutrition for Millennials. They view food as entertainment and self-expression. 
15. Most important when choosing food in general, the top-scoring attribute was “A good value for the money,” at 36 percent. Good value was also the top-scored when respondent were asked what is more important when choosing food from a restaurant. Thirty-nine percent said value mattered most. 

www.FoodserviceSolutions.us  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 since 1991

Albertsons, Safeway, Publix and Tesco are Perplexed while Take-Out finds Success.

Legacy grocery retailers around the world are finding it harder and harder to compete with new non-traditional fresh food retailers the ilk of Eataly, Eatzi’s,  Pret à Manger, Greggs, Eat, McDonalds, Popeye’s each selling Ready-2-Eat and or Heat-N-Eat fresh prepared food fast.

Mothers today still want to enjoy a family meal.  The problem according to Foodservice Solutions® Grocerant Guru “They do not have the time to cook nor do they have the required skill-set to prepare the multi-cultural highly specific flavor profiles meals that their families have grown accustom. Meal assembly is the standard today not cooking from scratch.” Grocery stores long term cannot compete with that.   

If you can’t Beat’em Join’em.  Publix developed a restaurant concept call Crispers (salad focus).  They have since sold it but is continues to grow and do well.  Now Great Britain’s Tesco is so concerned that is losing business to “takeaway trade in London” that it is about to launch a new concept to compete.

Restaurant, Deli, or Grocerant the new Tesco concept is reported to be a format that will position Tesco to directly compete with the likes of Pret à Manger, Eat and Greggs. The Grocerant format called "Tesco Express food to go" will focus on the urban London market. With a heavy focus on Ready-2-Eat during the mid-day-part, and Heat-N-Eat for the PM day-part Tesco is targeting time starved consumers.

Tesco has been refurbishing its grocery stores introducing "food to go" areas selling takeaway fare such as salads, artisan sandwiches and roast chicken much like Publix has done but Tesco is striving for much stronger consistency in quality, service, and freshness in it’s in-store fresh prepared food offerings.

Food consumers are migrating to new non-traditional outlets seeking Ready-2-Eat and Heat-N-Eat fresh prepared food.  Do you know where your current customers are getting their next meal or meal component? How are you selling food today? Are you selling food like you did 5 years ago or 5 years from now? Are your courting yesterday’s customers or tomorrows customers. 

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a Grocerant Niche leveraging integration strategy.