Consumers
are dynamic not static and brands must be as dynamic as consumers or their value
to consumers will ebb, sales slide, and growth will be stymied. According to
Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® it is at
the intersection of innovation and consumer trends that brands must be looking
forward.
Now
then since its founding in 1994, Wetzel's
Pretzels has been known for its soft, salty pretzels and fun menu
innovation featured beneath an unmistakably recognizable banner found in malls
from coast to coast.
Did
you know that after experiencing an explosive 35 percent same-store sales
growth over a three-year period ending in 2022, the snacking innovator has
baked the perfect recipe for 2023: adopting snacking strategies that are ahead
of industry trends by expanding into new venues and formats, such as the
company's presence in convenience stores. New avenues of distribution empower a
brand to reach a new set of consumers.
Yes,
it was former Wetzel's CEO Jennifer Schuler who was quoted saying, "Our
pipeline is the strongest it has ever been. We have doubled development since
malls were our core format and are adding more units in flexible settings. (Schuler
stepped down from her position earlier this spring.) "We saw a need to
service snacking beyond malls, so by going down the path of format innovation,
we can give our delicious pretzels to more consumers wherever they are. As we
see more success in these flexible formats, we are constantly thinking of new
ways to 'bring pretzels to the people' in both traditional and nontraditional
settings."
Opportunity
meets innovation, because c-stores have traditionally been known to be
fulfilled by distributors and food providers, Wetzel's wanted to find a way to bring
a well-known brand to these guests. And because of its store-within-a-store
format, the company can bring more fresh types of snacking into c-store
environments, Schuler pointed out. For example, Wetzel's Dog Bites fit in cup
holders, making them ideal for consumers on the go.
Schuler
continued, "We know that a mall is not the only place people want fresh,
hot pretzels, so enabling other options spearheaded immense growth within the
brand and expanded our reach in serving more snackers. We want to make sure the
product is available no matter the location, which was a significant driving
force in our c-store presence," ... "Now, c-store visitors can
experience a brand and product that is hot and fresh, instead of prepackaged.
We also have developed new baking strategies within c-stores, which reduces
labor costs and delivers more operational innovation."
Today,
Wetzel's network includes seven
c-store locations, with several more in the pipeline. One of the
company's c-store partners is Houston-based
Phillips 66. The partnership gives franchising opportunities to operators of
Phillips 66, Conoco and 76 branded c-stores.
Growth
with innovation, this year, Wetzel's will open its milestone 400th location,
and franchise unit growth is anticipated to be more than a 50 percent increase
over 2022, according to the company.
In
addition to convenience stores, Wetzel's will tap into other locations where
consumers are looking for a hot, fresh snack that's portable and convenient,
and where this is optimal foot traffic to support the business. This includes
growing its food truck fleet, as well as its presence in Walmart and Macy's
stores, airports and traditional mall locations.
While
Wetzel's has the ability to adapt to compelling formats, Schuler believes the
company's appeal to franchisees and consumers alike is its continued focus on
menu innovation that satiates consumer demand for snack-size bites and mini
meal fill-ins. Regular readers of this blog know just how consumers have been migrating
to hand held foods for immediate consumption.
Schuler
went on to explain, "We align our menu innovation with current taste
trends, aiming to increase sales for our franchisees. We started as solely a
pretzel company and now a significant number of sales come from innovative
products like Dog Bites — a bite-sized version of our classic, all-beef Wetzel
Dog,". "By staying on top of industry trends, we know we are keeping
the brand fresh. To ensure that our menu innovation is making franchisees
profitable, we do consistent market testing to be certain new products are
going to perform well with consumers and that the equipment needed to make menu
items has a strong return on the investment."
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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