Friday, April 24, 2020

Integrating Foodservice Technology in the Age of Grocerants

Success does leave clues, consumers have moved from impulse to buy while out shopping to intent to buy from fresh prepared meals and meal components while at home according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
While it may sound a subtle shift in direction the shift from impulse too intent is a key attribute all food marketers need to heed. Recent insight reveled that dinner has the highest amount of prepared food buys with 79% of respondents making purchases for that meal, while lunch comes in at 77% and breakfast at 62%. If your restaurant is interested in selling dinners, meals, and meal components you now need a classically trained food marketer equipped with the technology that is hand held and branded according to Johnson.
At the intersection of re-opening restaurants, serving safe food, handling food in the safest manner, and the price, value, service equilibrium consumers are aware that restaurant meal prices are up 3% this year over last year and they will use technology to search for meals, meal components, bold flavors, and price according to Johnson.
According to a recent webinar hosted by CSNews online and Paytronix, “The ability to order food via app or website varies ,… but trends currently shaping the industry indicate that it's important for operators to, at least, consider offering mobile ordering and delivery. WHO IS THE MOBILE ORDER CUSTOMER?
Here is what they reported; “Regardless of the difficulties, mobile ordering and delivery represent the next wave of growth in the c-store industry. Apps that tie these services in with mobile payment and loyalty programs will lead to greater success, as they let consumers earn reward points and enjoy special offers while retailers collect valuable data.
Generation Z is the demographic group driving this growth. Currently aged nine to 22, this cohort is the most diverse generation in history and will make up 40 percent of all U.S. consumers this year. More than five in 10 members of Gen Z (55 percent) use their smartphone five or more hours each day; 62 percent of Gen Z find themselves attracted to brands viewed as "fun" or "cool"; and 65 percent say they want real value for their money.
However, it is more difficult to catch the eye of these consumers. Members of Gen Z have an average attention span of eight seconds, compared to 12 seconds for millennials. Visuals may be a key part of doing so, as this generation of digital natives doesn't know a world without technology and is more image/video driven than text driven.

Gen Z sees the world as a smaller place; they are aware of the many different cultures out there and want to experience them. The most accessible way to do so is through the food they purchase, and technology helps connect them to types of food they might not otherwise encounter on their own.
This generation also cares about social justice and wants to know that brands are doing right by both their customers and employees. Transparency is important.
Fifty-two percent of Generation Z and millennials say they would buy from c-stores more if delivery were an option. The more available that delivery is, the more that younger shoppers will take advantage of it.
So, what are the best options for delivery?
Third-party delivery, such as a 7-Eleven Inc.'s partnership with DoorDash, has some notable advantages, such as:
·         Exposure: Third-party delivery partners can offer smaller retail brands equal exposure to some of the most well-known brands in the world, and make people aware that larger brands are now available for delivery.
·         Convenience: C-stores don't have to handle their own delivery logistics.
·         Expenses: C-store chains don't have to maintain their own delivery fleet.
However, 44 percent of customers who have a negative experience with delivery blame the brand; just 25 percent blame the third-party delivery company.
I know that’s a lot of information but I suggest that you reread it and think about who your customer is today, and who will / can be your tomorrow.  No matter what delivery format you chose, consider the entire order-and-delivery ecosystem, which starts at the point of order and goes all the way to the customer handoff, when the food needs to arrive on time, looking appetizing, and at the right temperature.
Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

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