Tuesday, March 2, 2021

Murphy USA Grocerant Niche Fresh Food Will Drive Growth


Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to drive growth in every sector of food retail focusing on garnering incremental customers and customer frequency according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Let’s look at some facts:

1.       When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 90.4 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 82.7% chose meal components, grocerant scorecards.  

2.       83.1% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 68.4% have two meal components, grocerant scorecards.

3.       Online food and beverage sales — including grocery plus restaurant online delivery — jumped 125% to $106 billion over the 52 weeks ended Nov. 30, accounting for 12% of overall dollars spent in those categories, NielsenIQ data shows. 

4.       35% of off-premises customers ages 21+ are more likely to choose a restaurant if it offers the option of including alcoholic beverages with the to-go order, NielsenIQ.

5.       Restaurant digital ordering and delivery has grown 300% faster than dine-in traffic since 2014, Technomic

Since Murphy USA recent acquisition of QuickChek they have ramp up its food and beverage offering as regular readers of this blog know. Murphy USA's, President and CEO Andrew Clyde stated, “ the company was open to pursuing targeted merger and acquisition activity, particularly if it includes chains with existing at-scale food and beverage capabilities that could deliver immediate benefits and upgrade Murphy USA's existing operations.” Note: The deal closed Jan. 29, becoming the first notable c-store M&A transaction of 2021.

Clyde continued "With QuickChek, we are well positioned to accelerate our strategic agenda, creating an even higher-quality income stream that is inclusive of a best-in-class food and beverage offer," …"Together, we can grow better, faster and stronger as our highly engaged teams share a passion for delivering excellence to our customers, our employees, our communities and our investors."

According to the CEO, the main strategic initiative going forward will be leveraging QuickChek's food and beverage platforms on "a fit-for-purpose basis for all formats." "The 1,400-square-foot stores have a coffee program, have dispensed beverage, have a made-to-stock food and beverage offer. There are definitely opportunities there," .

Let’s stop right here.  I want everyone to reread the last two paragraphs.  Yes, you read it right they bought the company because of their quality grocerant niche Ready-2-Eat and Heat-N-Eat was scalable fresh food.  

Clyde acknowledged we can absolutely benefit from the coffee program, the practices,"  Then "As the former [QuickChek] CEO Dean Durling said, there's 100 steps to making a great cup of coffee and we need to add about 90. There will be opportunities to do that, as well as improving our grab-and-go food program."

Clyde noted that the changes will not have immediate benefits in 2021, according to Clyde, but will set the foundation for accelerated growth in 2022 and beyond. Murphy USA and its team of nearly 15,000 employees serve an estimated 2 million customers each day through its network of retail gas stations and c-stores in 27 states. Are you looking a customer ahead? Should you buy or build?

For international corporate presentations, regional chain 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. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

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