Monday, December 23, 2024

Happy Holiday Meals: Last-Minute Meal Planners Embrace Grocerant Niche Mix & Match Bundling for Customization and Convenience

 


The holiday season continues to witness an evolving cultural shift as family traditions adjust to accommodate modern priorities. Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, states, "More families are placing value on experiences over hours spent cooking, cleaning, and doing dishes." Whether it's skiing, shopping, binge-watching the latest holiday shows, or simply spending quality time together, cooking from scratch is no longer the centerpiece of holiday gatherings.

Cooking from scratch has become a distant memory for most Americans. According to the latest Grocerant ScoreCard, an impressive 83.8% of all home-prepared holiday meals now include at least one Ready-2-Eat or Heat-N-Eat fresh-prepared item from the grocerant niche. This surge underscores the demand for convenient meal solutions, particularly among last-minute planners who prioritize speed, simplicity, and customization.



The Rise of Mix & Match Holiday Customization

Today's consumers are gravitating toward Mix & Match meal bundling as the ideal solution to their busy holiday schedules. By allowing families to combine multiple fresh-prepared meal components, grocerant niche providers like grocery stores, restaurants, and meal delivery services empower customers to create personalized holiday spreads. Notably, custom bundling satisfies the following:

1.       Time-Conscious Shoppers – Last-minute planners appreciate the flexibility of selecting individual meal items and sides without the stress of cooking entire feasts from scratch.

2.       Diverse Tastes – Mix & Match options allow families to cater to multiple dietary preferences and cravings while ensuring everyone gets their favorite dish.

3.       Stress-Free Convenience – Meal bundling delivers fresh, high-quality components that streamline meal preparation, providing a holiday table that looks homemade without the effort.

The National Restaurant Association reinforces this trend. Recent findings indicate that 11% of Americans opt to eat holiday meals in restaurants, while 8% now purchase complete holiday meals prepared locally. However, even more revealing is the hybrid approach: the majority of holiday tables now showcase a blend of homemade and grocerant niche items. This further emphasizes the growing reliance on Ready-2-Eat and Heat-N-Eat options as the backbone of holiday meals.


Where Holiday Consumers Are Going for Meals

As holiday dining habits continue to evolve, restaurant and grocery segments alike are well-positioned to meet these changing demands. According to updated NRA findings:

·         34% of consumers dining out choose a local restaurant for their holiday meal.

·         31% prefer a familiar restaurant known for special occasions.

·         20% use the opportunity to try a new restaurant for the first time.

These trends highlight the importance of strategic offerings that include fresh-prepared components and value-driven options for both dine-in and takeout consumers. Bundling meals with mix-and-match solutions resonates deeply with last-minute planners who seek quality, convenience, and customization on a tight schedule.


Key to Happy Holiday Meals: Ready-2-Eat Fresh Prepared Bundling

Whether your family is hitting the slopes, browsing shopping malls, or gathering to enjoy sports and entertainment, holiday meals no longer have to involve hours in the kitchen. Fresh-prepared holiday components are helping families reclaim time without sacrificing taste or tradition. Grocerant niche mix-and-match options have effectively become the solution of choice for families balancing busy holiday priorities.

Success Leaves Clues

Foodservice Solutions® is the global leader in Grocerant Niche business development. Are you ready to tap into this lucrative holiday opportunity with a customized Grocerant ScoreCard, Grocerant Program Assessment, or fresh ideation for Ready-2-Eat meal solutions? Success does leave clues!

Contact Foodservice Solutions® Today

·         Phone: 253-759-7869

·         Email: Steve@FoodserviceSolutions.us

Happy holidays to all, whether you're cooking from scratch, enjoying fresh-prepared meals, or gathering around a 65-inch HDTV with family and friends!



Sunday, December 22, 2024

Walmart: Creating Consumer Relevance Through Cutting-Edge Tech Innovation

 


For decades, Walmart has driven change by meeting consumers’ evolving needs in affordability and convenience. In 2024, the retailer’s embrace of automation, AI, and immersive technologies underscores one vital truth: staying consumer-relevant requires constant innovation. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® thinks it’s time to examine Walmart's tech-driven initiatives through the lens of consumer-focused solutions.

1. Personalization Through AI and Generative Platforms

Walmart’s investment in AI, including tools like Wallaby, AI search engines, and the GenAI-powered support assistant, directly enhances consumer experience:

·         Why It Matters: Shoppers crave hyper-personalized experiences similar to online giants like Amazon. Walmart’s AI initiatives predict preferences, resolve issues faster, and reduce friction in both discovery and support—critical for customer loyalty.

·         The Grocerant Guru’s Insight: Walmart knows that time-starved consumers prize simplicity and speed. Making relevant, intuitive product suggestions removes the guesswork for busy shoppers, enhancing convenience.


2. Automation at Scale: Faster Fulfillment, Fresher Products

Walmart’s rapid rollout of automated fulfillment centers and high-tech perishable distribution centers delivers fresher, efficiently handled goods to stores and, ultimately, into consumers’ hands. Key efforts include:

·         Temperature-controlled automation minimizing damage and maintaining quality.

·         A 100-strong network of small, automated fulfillment hubs—blurring the lines between in-store and online shopping experiences.

·         Why It Matters: Consumers expect speed, accuracy, and quality. These innovations ensure Walmart delivers on all three while scaling operations to meet increased demand.

·         The Grocerant Guru’s Insight: This is crucial for food shoppers, particularly when it comes to perishables. Walmart’s use of automation ensures fresh, reliable availability—whether purchased online, curbside, or in-store—heightening the relevance of its grocery operations.


3. A Consumer-Centric Payment Revolution

Walmart’s pay-by-bank solution with Fiserv represents a bold attempt to change payment habits by bypassing credit card fees. While still facing challenges against reward-based credit cards, Walmart is:

·         Removing intermediaries to drive cost savings—a win for consumers if Walmart reinvests those savings in price reductions.

·         Offering payment clarity: Real-time transactions create confidence and transparency around purchases.

·         Why It Matters: Today’s consumers are financially mindful. Finding alternatives to fee-heavy systems signals Walmart's commitment to delivering better value long-term.

·         The Grocerant Guru’s Insight: For consumer buy-in, Walmart must incentivize this payment method (e.g., cash-back offers or grocery credits). If done right, it creates a true win-win: consumers save money, and Walmart reduces operational costs.


4. Immersive Commerce: Appealing to Digital-First Consumers

From virtual avatars purchasing real-world products to 3D assets and augmented reality shopping, Walmart's strides into immersive commerce reflect an understanding of where younger, digital-savvy consumers interact.

·         Why It Matters: Gen Z and millennial shoppers see brands as ecosystems. Offering virtual-to-physical integrations appeals to these cohorts while bridging future shopping habits with today's purchases.

·         The Grocerant Guru’s Insight: Consumers no longer see a separation between digital and physical shopping—they expect consistency across all experiences. Walmart positions itself ahead of its competitors by fostering integrated, future-focused connections.

5. Sustainability: Addressing Eco-Conscious Consumers

Walmart’s food waste recycling collaboration with Denali and ventures into agricultural crop intelligence signal an alignment with consumers’ growing sustainability concerns.

·         Why It Matters: Younger generations demand sustainable business practices that deliver value and eco-impact without sacrifice.

·         The Grocerant Guru’s Insight: Leveraging tech to reduce waste, boost agricultural yields, and build transparency sets Walmart apart as both forward-thinking and responsible—values increasingly relevant to shoppers.

 


Key Takeaways: Walmart’s Relevance Playbook

Walmart’s rapid tech evolution boils down to addressing core consumer needs:

1.       Faster fulfillment and fresher grocery options through automation.

2.       Personalized shopping experiences powered by AI to reduce decision fatigue.

3.       Financial relief through payment innovations like pay-by-bank.

4.       Immersive commerce appealing to digital-first demographics.

5.       Actionable sustainability practices showing Walmart’s alignment with future-focused consumer priorities.

 


In essence, Walmart remains laser-focused on consumer relevance by blending technology with real-world solutions. For grocers seeking to thrive, the lesson is clear: technology isn't just innovation—it’s the pathway to providing relevant convenience, savings, and quality that today’s consumers demand.

Grocerant Guru’s Three Recommendations for Others:

1.       Hyper-Personalized Grocery Solutions: Leverage AI to customize meals, offer real-time suggestions, and align promotions to shopper preferences.

2.       Seamless Digital-to-Physical Integration: Make the online and offline shopping experience identical, accessible, and frictionless.

3.       Tech-Enhanced Sustainability Messaging: Use tech to reinforce your sustainability actions, showing tangible results that consumers trust.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

 


Saturday, December 21, 2024

Are You Buying a Floundering Restaurant Brand or the Locations?

 


In the last decade, the foodservice and commercial real estate industries have increasingly overlapped, especially as restaurant chains falter under the weight of declining consumer relevance, rising operating costs, and outdated models, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The key question facing investors today isn't whether the struggling restaurant brand can be turned around—it often can't—but whether the value lies in the locations themselves rather than the banner on the front door. Examining food industry trends over the past ten years shows a stark truth: most struggling restaurant brands are weak and stay weak, while their prime locations remain an overlooked asset.

 


The Historical Picture: Floundering Brands Stay Floundering

The narrative of restaurant brand failure isn't new. Over the last decade, Sbarro, Friendly's, Quiznos, and Blimpie are prime examples of brands once perceived as strong yet faltered due to – among other reasons – poor management, lack of innovation, and a failure to keep up with consumer dining preferences. For brands like these, even changes in ownership failed to inspire enduring growth.

The harsh reality: Most struggling brands don't possess the relevance to rebound. According to Technomic's industry data, nearly 70% of restaurant brands that fall into steep decline fail to regain market momentum, despite reorganization efforts.

Why?

·         Consumer Migration: Customers are increasingly loyal to convenience, quality, and value-driven competitors, such as fast-casual chains, grocerants, and third-party meal delivery options.

·         Identity Loss: Brands too far removed from their original core identity (think: inconsistent menus and uninspired innovations) lose emotional appeal.

·         Market Saturation: A once-beloved concept might fail not because it's universally flawed, but because it became redundant among the dining landscape.

These brands remain locked in cycles of discounting and ‘revamped concepts’ that yield minor bumps but no sustained profitability. In short: A bad brand doesn't age well.

 


The Power Is in the Locations

The locations that these struggling restaurants occupy, however, tell a different story. While the banners above the doors fade, the physical real estate remains a highly prized asset. Prime locations in areas of strong foot traffic, suburban centers, and growing metropolitan corridors hold value far beyond a legacy brand's diminished returns.

Consider this:

·         The National Restaurant Association reported that 50% of restaurant visits over the last 5 years occur in convenience-centric spots such as mixed-use developments or neighborhoods experiencing demographic booms.

·         Well-positioned buildings with drive-thru infrastructure remain particularly lucrative in the age of delivery and off-premises dining, increasing value regardless of whether a restaurant chain fails.

Key takeaway: Investors can often derive more profit from the real estate redevelopment or repurposing of these spaces rather than sinking funds into revitalizing a stagnant brand. A floundering concept may only stand in the way of unlocking greater commercial potential.

Who Are You Competing With for

Share of Stomach


 

Investor Pitfalls: The Skill Set Problem

In many cases, groups acquiring struggling brands fail to identify their weaknesses—either by overestimating their own ability to breathe life into stale restaurant concepts or by ignoring emerging foodservice trends.

Two Major Realities:

1.       Lack of Operational Expertise: Many buyers come from real estate, finance, or outside sectors and lack the hands-on, forward-thinking expertise to rejuvenate failing restaurants. A familiar name, historical familiarity, and perceived nostalgia often trick investors into thinking a brand still holds latent consumer appeal.

o    Example: When Quiznos franchises were acquired by investment groups, owners misread the consumer's appetite for new, healthy QSR innovations, while Subway and Jimmy John's surged ahead with agile branding strategies.

2.       Failure to Create Consumer-Relevant Brands: Most struggling brands falter precisely because they aren't meeting today's consumer expectations. Acquiring firms without the vision to pivot to fresh, on-trend dining models simply accelerate the brand's demise.

o    Meanwhile, success stories like Sweetgreen, Shake Shack, and Chipotle show how forward-thinking brands capitalize on flavor innovation, pricing transparency, and frictionless delivery models.

In essence, many buyers fail to identify whether they're truly purchasing a viable concept or merely saddling themselves with an albatross.

 


Case Study Examples

·         Ruby Tuesday: Acquired several times over the last decade, Ruby Tuesday's core weaknesses persisted—uninspired casual dining, bloated menus, and neglected store upkeep. The high-value real estate that locations occupied (near major retail hubs and suburban crossroads) became more valuable than the brand itself. Buyers failed to capitalize on newer food trends, accelerating its closure rate.

·         Burger King Locations Redeveloped: In the wake of closures across declining markets, numerous Burger King franchises turned into profitable Starbucks or Chick-fil-A spots. Well-situated sites with high-volume traffic lived up to their potential, even when the Burger King banner had not.

The Future Outlook: Redevelop, Don't Rescue

As restaurant industry competition intensifies and consumer expectations evolve, underperforming restaurant brands will remain risky purchases. However, for savvy buyers, the locations present strategic advantages far exceeding their operational histories. When high-demand areas meet physical spaces built for dining convenience—drive-thru, delivery access points, and high-traffic areas—the opportunities multiply.

Consider this actionable framework for buyers:

1.       Prioritize Location Metrics: Location value lies in high consumer visibility and service capability, not in legacy nostalgia for old brands.

2.       Redevelop for Consumer Relevance: Convert failing locations into new QSR concepts, mixed-use retail, or on-trend grocery partnerships (e.g., ghost kitchens).

3.       Assess Market Conditions Aggressively: Brands with sinking operational metrics—plummeting comp sales, shrinking margins—indicate future stagnation regardless of ownership.

 


Think About This: Real Estate Triumphs Over Nostalgia

The last decade has cemented this fact: the restaurant industry rarely rewards outdated concepts trying to claw their way back to relevance. Many investors chase failed turnarounds for far too long—while smarter players recognize the enduring value of prime real estate. Floundering brands are risky ventures, but their locations can serve as fertile ground for the next big concept.

Savvy investors don't ask whether they can revive an underperforming chain. Instead, they ask: How much value can we unlock from where that restaurant stands?

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche.