Grocerant niche growth is in large part
driven by the ‘halo’ of better-4-you fresh prepared food that can be mixed,
matched, and bundled into a perfect meal for one or the entire family. Gen Z
and Millennials have this ongoing quest for food discovery that includes new
points of distribution.
According to Steven Johnson, Grocerant Guru® at
Tacoma, WA based Foodservice
Solutions® the ability to mix & match meal components into the perfect
meal, snack for one or customize a meal for the entire family with mix &
match meal components customized into a friendly meal that deemed
‘better-4-you’, that is served fresh and fast.
Our friend and food industry icon Don Longo recently wrote about and featured an article about Fuelco/Foodsmart's young president Adam Musa that describes his convenience store/gas
station concept as a fresh and healthy alternative to the more
"bodega-like" c-stores found in the upscale suburb of Yonkers,
located just north of New York City. We like it and wanted to share some
of his valuable insights.
So, “Musa recently welcomed local
officials to the newest Fuelco/Foodsmart store for a ribbon-cutting ceremony
and tour of the site, which features deeply discounted fuel alongside a store
that looks more like a Trader Joe's than a typical c-store.”
"We're trying to bring healthy
alternatives in terms of snacks to the community, as well as lower-priced gas.
It's so low that people think it's a joke," Musa said during the
ribbon-cutting, when a gallon of unleaded gasoline cost $1.99 at the
location.
Musa's company currently operates a total
of 15 gas stations and is planning to open additional service stations and
c-stores in Westchester County and Putnam Valley in New York, Fairfield County
in Connecticut, and Miami-Dade County in Florida.
With the Foodsmart brand, Musa is
attempting to respond to evolving consumer tastes.
"The world is changing. Diets are
changing. Keto friendly, kosher, vegan, vegetarian, gluten free and other
dietary restrictions have people transforming their diets," he said.
"Unfortunately, most traditional convenience stores have not
adapted." …..
"While Doritos, Coca-Cola and
Hershey bars were once top sellers, Foodsmart sales show that traditional
snacks are outsold by products like Rhythm Broccoli Bites, Harvest Snaps Green
Pea Crisps, Amphora Organic Dried Fruit," noted Musa, who has been in
the industry most of his life, as his grandfather and father started the
company he now runs.
The reason for these surging sales, he
says, is a strategy of targeting dense residential areas and providing a 24/7
convenience store that mimics Trader Joe's and Whole Foods' offerings.
According to Musa, he has an advantage over the larger specialty grocers as his
lower rent, real estate taxes and payroll, along with fuel sales, allow
Foodsmart to sell healthy products for less.
While the Foodsmart stores offer a
variety of organic, gluten-free and fair-trade snacks, they still provide most
traditional convenience store staples as well, from beer and coffee to
cigarettes and soft drinks.
"You can't stay in business if you
only sell healthy items," said Musa. He did point out, though, that
traditional Coke and Pepsi soft drinks take up only three shelves among the 10
cooler doors, which are full of non-traditional drinks like kombucha, Mash, and
several varieties of enhanced waters and fruit drinks.
In the future, Musa plans to expand the
size of Foodsmart stores from the current 1,800 square feet to 2,500 square
feet, and add electric vehicle charging units. Trade magazines the ilk of Convenience Store News are a valuable contribution to those looking for additional
insights into the grocerant niche and how it is evolving.
Don’t over reach. Are
you ready for some fresh ideations? Do your food marketing ideations look more
like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your
retail food brand while creating a platform for consumer convenient
meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the
following links: Facebook, LinkedIn, or Twitter
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