If you do not think that the price of your food
matters you are wrong. According to Steven Johnson Grocerant Guru® at Tacoma, WA based
Foodservice Solutions®, ho stated, “the price, value, service equilibrium is
evolving faster than the wholesale prices the foodservice operators are experiencing.”
Now, according to Mintel, 51 percent of Americans say they
are currently concerned about the future of the economy. A same time, a similar
share (48 percent) feel confident their financial situation will improve in the
next 12 months. That is the good and the bad news.
Let’s see what Mintel found by digging deeper, nine in 10
consumers (94 percent) say they are currently worried about inflation, and 67
percent believe the majority of Americans share in these concerns, while a
third (34 percent) believe it's other Americans — rather than themselves — who
are financially struggling right now. Meanwhile, 22 percent of Americans
overall, and 31 percent of parents, say they are struggling to cover day-to-day
Inflationary pressures are driving
consumers to cut back on nonessential purchases (40 percent) and dining out (37
percent), said the research firm.
Do you Want to Build Top Line Sales
Remember PRICE Matters
Do you Want To Grow Share of Stomach
Dudina continued, "While not all
consumers consider themselves financially struggling at this time, many are
already adjusting their shopping behaviors regardless of their level of
financial comfort," ... "To support struggling and concerned
consumers, brands need to find creative ways to demonstrate the value of their
products and services and tangibly reward customers as a way of building brand
loyalty and repeat business." Here
is more from Mintel:
According to Mintel, age and current life
stage affect consumers' greatest financial concern. Consumers aged 55 to 64 are
more focused on big-picture concerns including the overall well-being of the
economy and their personal retirement savings.
Conversely, Gen Z consumers (18 to 24),
are more concerned with their own short-term financial well-being: maintaining
their current standard of living, ability to pay their bills and ability to
afford day-to-day necessities.
With these concerns in mind, Dubina
pointed out that brands will need to consider these key differences to resonate
with each generation.
The research firm also pointed out that
consumers are willing to pay more for higher quality; however, there's little
else they prioritize before lower prices. More than six in 10 consumers prefer
lower prices over a convenient shopping experience, and 57 percent say they
prioritize lower pricing over sustainable brand options.
Additionally, 63 percent of consumers say
that brand name is not important to them when shopping most categories, yet 59
percent of people agree they'd rather pay more for a higher quality product
than pay less to receive average quality.
"As consumers struggle to adapt to
rising prices due to inflation and product shortages, they are likely to
continue choosing the best price over the more sustainable and more expensive
option," Dubina said. "Understanding that now is a difficult time for
retailers to offer more discounts due to challenges like supply chain issues
and the rising price of labor cutting into profit margins, offering creative
perks and benefits to customers can increase the value of purchases and help
build long-term customer loyalty.
"Now more than ever, it's important
for brands to not only communicate the value of their products and services but
also prove it to consumers who are increasingly looking to avoid financial risk
or waste," Dubina added.
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
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