The Joy of Meal Assembly: A Culinary Revolution for Time-Starved Generations

 

In the ever-evolving landscape of foodservice, one trend has emerged as a beacon of convenience and satisfaction for modern consumers: the rise of fresh prepared ready-2-eat (RTE) and heat-n-eat meals. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, has observed a significant shift in consumer behavior, especially among Gen Z and Millennial cohorts.

These younger generations are redefining the dining experience, prioritizing convenience and variety while shunning the traditional kitchen for innovative, time-saving solutions. Let's delve into the historical context and industry facts that underscore why mix-and-match meal component bundling is becoming the preferred choice for today's busy lifestyles.

A Historical Perspective: The Decline of Home Cooking

The decline in cooking skills among younger generations is a well-documented phenomenon. Unlike their parents and grandparents, who grew up in households where cooking from scratch was a daily ritual, Gen Z and Millennials have been raised in a world of convenience. According to a 2020 report by the International Food Information Council, only 25% of Millennials and Gen Zers report cooking from scratch daily, compared to 50% of Baby Boomers. This decline in cooking skills is further exacerbated by hectic schedules, with 64% of Millennials citing a lack of time as the primary reason they do not cook more often.

The Time-Starved Consumer: A New Reality

The modern lifestyle has left Gen Z and Millennials more time-starved than any previous generation. A 2021 survey by the U.S. Bureau of Labor Statistics found that the average American spends only 37 minutes per day on meal preparation, a sharp decline from the 60 minutes recorded in the 1960s. This reduction in time spent cooking is driven by increased work commitments, longer commutes, and the desire for more leisure time.

For these generations, the question, "What's for dinner?" has evolved from a culinary challenge into a logistical one. The traditional sit-down meal, meticulously prepared at home, has given way to the demand for fast, convenient, and customizable dining solutions. This shift is not just a passing trend; it's a reflection of a fundamental change in how we perceive and prioritize our time.

Fresh Prepared Ready-2-Eat and Heat-N-Eat: The Ultimate Solution

Enter the era of fresh prepared RTE and heat-n-eat meals, a category that has exploded in popularity over the last decade. These offerings provide a perfect blend of convenience, quality, and variety, catering to the diverse tastes and dietary preferences of today's consumers. According to the Food Marketing Institute, the demand for these meals has grown by 25% annually since 2015, with the market size expected to reach $55 billion by 2025.

The appeal of these meals lies in their flexibility and ease of use. Consumers can quickly assemble a nutritious and delicious meal by combining various components, such as protein, vegetables, grains, and sauces. This mix-and-match approach allows for endless customization, enabling individuals to cater to their specific tastes and dietary needs without the hassle of cooking from scratch.

Empowering Meal Assembly: The Grocerant's Role

Restaurants, Service Deli’s, Convenience Stores can or are becoming, a hybrid of legacy grocery stores, convenience stores and chain restaurants, most are or have become the epicenter of this meal assembly revolution. They offer a wide array of fresh prepared RTE and heat-n-eat options, designed to appeal to the time-strapped, convenience-seeking consumer. Whether it's a grab-and-go sushi platter, a hot rotisserie chicken, or a selection of gourmet salads, grocerants provide an easy and efficient way to answer the daily dinner dilemma and many have drive-thru’s.

The concept of meal assembly at grocerants type outlets goes beyond mere convenience; it also empowers consumers to make healthier choices. With transparent ingredient lists and nutritional information, customers can make informed decisions, selecting meals that align with their health goals and dietary restrictions.

The Joy of Meal Assembly: A Culinary Renaissance

The joy of meal assembly lies in its simplicity and accessibility. For Gen Z and Millennials, who may lack the cooking skills of previous generations, it offers a way to enjoy diverse and exciting meals without the stress of meal planning and preparation. It also opens the door to culinary exploration, allowing consumers to experiment with new flavors and cuisines in a low-risk, low-commitment manner.

Moreover, this trend aligns with the broader movement towards sustainability and reducing food waste. By purchasing only the components they need, consumers can minimize waste and make more environmentally conscious choices.

Think About This: The Future of Dining

As we look to the future, the trend towards fresh prepared RTE and heat-n-eat meals shows no signs of slowing down. For grocerants and other foodservice providers, the opportunity lies in continuing to innovate and expand their offerings, catering to the evolving tastes and preferences of Gen Z and Millennials. The mix-and-match meal component bundling approach is not just a solution for the time-starved consumer; it's a culinary renaissance that brings joy, convenience, and variety to the dining experience.

In the words of the Grocerant Guru®, "The joy of meal assembly is the joy of choice, the joy of convenience, and the joy of savoring every moment." For today's consumers, it's the answer to that age-old question: What's for dinner?

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

Chain Restaurant Business Model is Broken

 

As the Grocerant Guru®, I’ve spent decades analyzing the ebb and flow of the retail foodservice industry, and it’s clear that the chain restaurant business model is broken. The price, value, and service equilibrium, once the cornerstone of successful dining establishments, has dramatically shifted. Yet, many legacy restaurant chains remain stubbornly anchored in the past, unwilling to adapt to the evolving demands of today’s consumers. This stagnation has led to a capitulation of both customer counts and market share.

The Shifting Equilibrium: Price, Value, Service

The concept of value in the restaurant industry has always been a delicate balance between price, quality, and service. However, in recent years, the definition of value has broadened significantly. Consumers today are not just looking for a meal; they are seeking an experience. This includes everything from the convenience of ordering to the ease of sharing their experiences on social media.

The traditional pillars of the industry—price and service—are no longer sufficient to guarantee success. The rise of digital platforms and the growing importance of social media have introduced new variables into the equation. Consumers now expect seamless digital interactions, personalized experiences, and, importantly, the ability to enjoy their meals wherever they choose. The pandemic only accelerated these trends, as dining habits shifted from in-restaurant experiences to takeout, delivery, and curbside pickup.

Legacy Chains: Clinging to the Past

Many legacy chains have failed to keep pace with these changes. They continue to rely on outdated business models, emphasizing low prices and standardized service at the expense of innovation. This approach has led to a significant decline in customer loyalty and, consequently, a loss of market share. According to industry data, many of these chains have seen a drop in foot traffic by as much as 20% over the past five years, with some brands losing as much as 10% of their market share.

The inability to adapt has been starkly evident in the performance of these legacy brands. The National Restaurant Association reported that, in 2023, over 30% of the top 50 chain restaurants experienced a decline in customer visits, a clear indicator that their traditional business models are no longer resonating with modern consumers.

The New Formula: Price + Quality + Social Discovery + Portability = Value

At Tacoma, WA-based Foodservice Solutions®, we’ve always believed in evolving with the consumer. As the Grocerant Guru®, Steven Johnson has retooled, reevaluated, calculated, and evolved the formula for success in today’s market. The new formula is simple yet profound: Price + Quality + Social Discovery + Portability = Value.

1.       Price: While price remains a critical factor, it’s no longer the sole driver of value. Consumers are willing to pay more for higher quality and unique experiences.

2.       Quality: This goes beyond the taste and presentation of food. It includes the quality of ingredients, the transparency of sourcing, and the healthfulness of menu options.

3.       Social Discovery: In the age of Instagram and TikTok, the social aspect of dining has become crucial. Restaurants must create experiences that encourage sharing on social media, turning customers into brand ambassadors.

4.       Portability: The convenience of enjoying meals on the go has become a non-negotiable aspect of modern dining. This includes packaging that keeps food fresh and presentable, as well as efficient delivery and pickup options.

Evolving with Consumers

Success leaves clues, and one of the most vital clues in today’s market is the necessity of evolving with consumers. Brands that fail to adapt to changing consumer preferences risk irrelevance. The Grocerant Guru® formula highlights the importance of embracing new trends and technologies, from digital ordering platforms to innovative menu items that cater to health-conscious and environmentally aware diners.

Think about this, the chain restaurant business model is indeed broken, but it’s not beyond repair. By embracing a new value equation that considers price, quality, social discovery, and portability, restaurants can reclaim their place in the hearts of consumers. The future belongs to those who are willing to evolve and innovate, meeting consumers where they are and exceeding their expectations.

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

Gen Z and Millennials: The Relevance of Timely Content

 

From the bustling aisles of your favorite restaurant, deli, or convenience store to the dynamic feeds of social media platforms, one thing is clear: capturing the attention of Gen Z and Millennials is crucial for any brand's success. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, has said confidently, understanding and leveraging creator-generated content is a game-changer. Let's dive into the fresh facts and insights from a recent consumer sentiment survey commissioned by NCSolutions (NCS) to explore why this timely content matters more than ever.

The Influence of Creator-Generated Content

Creator-generated content, often referred to as influencer content, has become a driving force in consumer purchasing decisions. According to the NCS survey, nearly half of Americans (48%) have purchased a product they saw featured in creator-generated content on an entertainment app or social media platform. This impact is even more pronounced among younger generations: two-thirds (66%) of Generation Z and more than half (55%) of Millennials have made purchases based on influencer content.

Engagement and Emotional Connection

The survey reveals that Americans feel a range of emotions when they encounter influencer-generated advertising. Nearly half (47%) feel entertained, and 43% are prompted to research the product. Additionally, 24% are likely to share the endorsed product with friends and family, and 23% feel inspired. These responses highlight the power of emotional engagement in driving consumer action.

For brands, this means that incorporating influencer-generated content into marketing strategies can enhance both reach and resonance. Deirdre McFarland, chief marketing and communications officer of NCSolutions, emphasizes this point: "Given the growth of creator-generated content and the quality and size of the audience that these social/entertainment platforms attract, brands have an opportunity to complement their branded marketing campaigns with these influencer-created ads."

Generation Z: Leading the Charge

Generation Z, those born between 1997 and 2012, demonstrates a particularly strong affinity for creator-generated content. The survey found that 37% of Gen Zers appreciate creators sharing personal aspects of their lives, compared to 23% of all other generations. Furthermore, 27% of Gen Zers feel strongly connected to influencers, and 27% believe influencers endorse only top-quality products. This trust and connection make Gen Z a prime target for brands looking to build lasting relationships.

More than one in five Gen Zers trust influencers and their recommendations (21%), and 16% feel represented by creators. These figures are significantly higher than those of older generations, underscoring the unique bond between Gen Z and influencers. For brands, tapping into this connection can lead to increased loyalty and sales.

Key Elements of Effective Content

Understanding what makes creator-generated content effective is essential for brands aiming to engage younger audiences. Humor tops the list, with 50% of Americans citing it as the most appealing attribute of influencer ads. "How-to" videos (40%), music (37%), authenticity (34%), storytelling (33%), and product suggestions (27%) also resonate strongly with viewers.

As McFarland notes, "Knowing the elements that consumers like the most and drive purchase behaviors is vital intel for brands." By incorporating these elements into their influencer partnerships, brands can enhance their creative impact and drive incremental sales.

Economic Impact

The influence of creator-generated content extends across income levels. The NCS survey found that 52% of consumers earning $100,000 annually made a purchase based on influencer content, while 46% of those earning $50,000 to $99,000 and 41% of those with incomes less than $50,000 did the same. This widespread impact highlights the broad appeal of influencer marketing.

Strategic Implications for Brands

To stay relevant and drive growth, brands must recognize the value of timely, creator-generated content. By aligning with the right influencers and incorporating key content elements, brands can create memorable and impactful campaigns. As McFarland concludes, "Pairing your brand with the right creator not only raises the power of creative but also enhances brand connections, allowing advertisers to make lasting impressions with consumers."

Think About This, Gen Z and Millennials are more than just demographics; they are dynamic, influential consumers who respond to authentic, engaging content. Brands that embrace this shift and invest in creator-generated content will not only capture the hearts and wallets of these generations but also pave the way for sustained growth and success in the ever-evolving marketplace.

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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Timely Content Matters 

Pizza Hut Yesterday’s Brand: Why Franchisee Bankruptcy Filings Will Continue

 

When it comes to the pizza industry, few names have been as iconic as Pizza Hut. However, the landscape of the pizza market has dramatically shifted over the years, leading to a decline in Pizza Hut's dominance. To understand why franchisee bankruptcy filings will likely continue, we once again asked Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® for his insights as we need to delve into the historical context, analyze current market dynamics, and explore the numbers that tell the tale of a brand in decline.

The Rise of Pizza Hut

Pizza Hut, founded in 1958, quickly became a household name. By the late 1970s, it was the largest pizza chain in the world. The brand's expansion was meteoric, with store counts soaring. At its peak in the early 2000s, Pizza Hut boasted over 18,000 locations globally. The company's innovative dining experiences, like the iconic red-roofed restaurants and the introduction of the stuffed crust pizza, helped cement its position at the top.

Market Share Dominance

During its heyday, Pizza Hut held a substantial share of the U.S. pizza restaurant market. In the late 1980s and early 1990s, Pizza Hut controlled nearly 25% of the market, a testament to its widespread popularity and consumer loyalty. However, this dominance was not to last.

The Decline Begins

The turn of the millennium marked the beginning of a slow but steady decline for Pizza Hut. Competition intensified with the rise of new, agile players like Domino's and Papa John's. These competitors leveraged technology, streamlined operations, and aggressive marketing to chip away at Pizza Hut's market share. By the late 2010s, Pizza Hut's market share had dwindled to around 14%, and the store count had dropped to approximately 16,000 locations worldwide.

Store Numbers: Highs and Lows

From a high of over 18,000 stores, Pizza Hut's global footprint has contracted. As of 2023, the number of Pizza Hut locations stands at approximately 13,000, reflecting a significant retrenchment. In the U.S., the store count has decreased from a peak of around 7,500 to about 6,500. This contraction is a clear indicator of the brand's struggles to maintain its relevance in an increasingly competitive market.

Market Share Capitulation

The capitulation of Pizza Hut's market share is a case study in how rapidly changing consumer preferences and market dynamics can upend even the most established brands. The shift towards convenience and technology-driven solutions, embodied by Domino's emphasis on online ordering and delivery logistics, left Pizza Hut scrambling to catch up. The rise of fast-casual and artisanal pizza brands further eroded its market position.

The Financial Strain on Franchisees

As Pizza Hut's market share declined, the financial strain on its franchisees increased. Lower sales volumes, coupled with rising operational costs, have made it challenging for many franchisees to remain profitable. This strain has culminated in a wave of bankruptcy filings. In recent years, several large franchise operators have sought bankruptcy protection, citing unsustainable debt levels and declining revenue.

Why Bankruptcy Filings Will Continue

The trend of bankruptcy filings among Pizza Hut franchisees is likely to persist due to several factors:

1.       Operational Costs: The fixed costs associated with maintaining physical storefronts, especially dine-in locations, are high. With declining foot traffic, these costs become burdensome.

2.       Competitive Pressure: The aggressive expansion and innovative strategies of competitors continue to siphon market share from Pizza Hut.

3.       Changing Consumer Preferences: Modern consumers favor convenience and technology integration, areas where Pizza Hut has lagged behind.

4.       Brand Perception: Pizza Hut's brand, once a symbol of quality and innovation, is now often viewed as outdated compared to fresher, more dynamic competitors.

5.       Economic Factors: Broader economic pressures, such as inflation and labor costs, add to the financial challenges facing franchisees.

Think About This

Pizza Hut's story is a cautionary tale of how market leadership can erode when a brand fails to adapt to changing consumer preferences and competitive pressures. The continued financial strain on its franchisees, evidenced by ongoing bankruptcy filings, underscores the need for a strategic overhaul. For Pizza Hut to reclaim its former glory, it must innovate, streamline operations, and reconnect with consumers in a meaningful way. Until then, the shadow of bankruptcy will likely loom over its franchisees.

By understanding the historical trajectory and current challenges of Pizza Hut, we gain insight into the broader dynamics of the fast-food industry and the importance of agility and innovation in maintaining market leadership.

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

Is Private Label Food the New Business Model Power Paradigm?

 

The retail industry is witnessing a paradigm shift, with private label products becoming a formidable force. Recent data underscores this trend, revealing a substantial surge in store brand market share. According to Circana sales data, store brands achieved unprecedented highs in both unit and dollar share during the first six months of 2024, compared to the same period last year. As of June 16, unit market share stood at 22.9%, and dollar market share at 20.4%. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that at its core private label is clearly ascending fresh prepared food to levels not even dreamed about five years ago.  

The Surge of Store Brands

PLMA President Peggy Davies aptly described this as the "store brands phenomenon," which is transforming the retail landscape across all channels, departments, and categories. The superior performance of store brands at checkout, compared to national brands, is a significant contributor to this trend. Store brand dollar sales increased by 2.3%, outpacing the 1.1% gain of national brands. The disparity in unit sales growth was even more pronounced, with store brands rising by 2.5% while national brands declined by 0.8%.

The New Power Paradigm: Facts and Figures

The success of private label products is not just a fleeting trend but a robust business model power paradigm. The total store brand sales for the first half of 2024 reached an impressive $121 billion, compared to $472 billion for national brands. The outlook for the rest of the year is optimistic, with PLMA projecting that total store brand revenue for 2024 will exceed $250 billion, setting a new record for annual sales.

Keith Lincoln and Lars Thomassen, in their seminal work, have long advocated for the potential of private labels. They emphasize that private labels offer retailers higher margins, stronger brand loyalty, and greater control over the supply chain. These advantages have become increasingly evident as more consumers turn to store brands for their perceived value and quality.

Category Performance: A Broad Spectrum of Success

Circana's data reveals that store brand sales are flourishing across nearly all product departments. Here’s a snapshot of the categories that have seen significant gains over the 52 weeks ending June 16:

·         Beauty: +10%

·         Liquor: +8.8%

·         General Food: +6.9%

·         Home Care: +6.8%

·         Pet Care: +5.8%

·         Beverages: +4.3%

·         Frozen: +2.9%

·         General Merchandise: +2.2%

·         Home: +1.7%

The only exception was the refrigerated category, which experienced a slight decline of -0.7%.

The Strategic Advantage of Private Labels

Private labels have become a strategic asset for retailers. By offering products that compete directly with national brands in quality and price, retailers can attract a loyal customer base and differentiate themselves in a crowded market. This is particularly crucial as consumer behavior shifts towards seeking value without compromising quality.

The rise of private labels is also driven by innovation and responsiveness to consumer trends. Retailers are investing in product development, packaging, and marketing to elevate their store brands. This investment is paying off as store brands now represent a viable alternative to national brands, appealing to a broad demographic spectrum.

Looking Ahead

The trajectory of private labels suggests they are not just a trend but a fundamental shift in the retail business model. As Lars Thomassen and Keith Lincoln highlight, the potential for growth in private labels is immense, driven by the benefits they offer to both retailers and consumers.

With the continued focus on quality, value, and innovation, private labels are poised to reshape the retail landscape. As we look forward to the rest of 2024 and beyond, it is clear that private labels are setting the pace, and their dominance is likely to grow.

The Grocerant Guru® perspective is clear: the rise of private labels marks a new power paradigm in the retail industry. Retailers who embrace and invest in their store brands are not just keeping up with the trend; they are setting the stage for future success. The data is compelling, the benefits are clear, and the future of private labels looks brighter than ever.

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