Saturday, August 31, 2024

How Food Marketing Partnerships and Sponsorships Drive Restaurant Sales: The Little Caesars Playbook

 


With back to school it’s the perfect time to begin comminating fall food marketing programs according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. In 2024 more than in past years, marketing partnerships and sponsorships have become critical tools for driving sales, particularly in takeout, delivery, and meal pick-up options. As the Grocerant Guru®, it's clear that these strategies can exponentially increase a brand’s visibility and customer base, directly translating into incremental top-line sales. Little Caesars, as the Official Pizza Sponsor of the NFL, exemplifies how leveraging high-profile partnerships can lead to significant growth, especially as they gear up for the 2024-2025 football season.

The Impact of Marketing Partnerships on Takeout and Delivery Sales

Marketing partnerships, particularly with major sports leagues like the NFL, offer restaurant chains an unparalleled platform to reach millions of consumers. For takeout and delivery services, these partnerships create a direct association between a popular brand and a convenient dining option, encouraging fans to order in during games. This association is particularly potent in the pizza segment, where game days are synonymous with pizza nights.

Sponsorships also provide opportunities for targeted promotions, such as limited-time offers and gamification, which can further drive sales. For instance, Little Caesars is not only offering fee-free delivery for the season kickoff but is also engaging fans with its Pizza!Pizza! Pregame challenge program. These initiatives are designed to boost customer engagement, encouraging repeat orders and fostering brand loyalty.


Five Ways Little Caesars Will Garner Incremental Sales and New Customers

1.       Fee-Free Delivery Promotion: By eliminating delivery fees, Little Caesars is removing a significant barrier for customers who might otherwise hesitate to order. This move is particularly strategic, as it taps into the convenience factor that drives takeout and delivery orders. Free delivery not only encourages first-time orders but also increases the frequency of repeat purchases, leading to incremental sales.

2.       NFL Star Power and Advertising Campaigns: Partnering with NFL stars like George Kittle and Amon-Ra St. Brown allows Little Caesars to tap into the fan bases of these athletes. Featuring these players in commercials creates a strong emotional connection between the brand and football fans. Additionally, Justin Jefferson’s involvement in a primetime advertisement through the Pepsi partnership amplifies Little Caesars' reach. These high-profile endorsements are likely to attract new customers who are fans of these athletes and the NFL.


3.       Pizza!Pizza! Pregame Challenge Program: The gamification of the customer experience through the Pizza!Pizza! Pregame challenge is a brilliant way to engage customers beyond just the purchase. By incentivizing fans to participate in challenges and earn rewards, Little Caesars is creating a fun, interactive experience that keeps customers coming back. This program not only drives repeat orders but also enhances customer loyalty, resulting in sustained sales growth.

4.       Localized In-Game Activations: Little Caesars’ partnerships with several NFL teams for localized branding and in-game activations create a personalized experience for fans in different markets. By aligning with local teams, Little Caesars strengthens its presence in key markets, fostering a sense of community and loyalty among fans. This localized approach is likely to attract new customers who feel a stronger connection to the brand through their favorite team.


5.       Community Engagement through the Love Kitchen: The Love Kitchen initiative, which serves pizza to communities in need, is more than just a charitable act; it’s a powerful marketing tool. By partnering with the NFL to roll out the Love Kitchen in key event cities, Little Caesars is reinforcing its brand as one that cares about the community. This positive brand image not only attracts socially conscious consumers but also fosters goodwill that can translate into long-term customer loyalty and incremental sales.

Think About This

Little Caesars' strategic use of food marketing partnerships and sponsorships demonstrates the power of aligning a brand with cultural touchpoints like NFL football. By offering value-driven promotions, leveraging star power, and engaging in community-focused initiatives, Little Caesars is poised to not only drive incremental top-line sales but also attract a new generation of loyal customers. As the NFL season kicks off, Little Caesars' playbook of fan-centered promotions and activations will undoubtedly reinforce its position as a leader in the pizza industry, particularly in the grocerant niche takeout and delivery segments.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.



Friday, August 30, 2024

Grocerant Niche Adoption Now Driven by Gen Z: Are Legacy Chains Falling Behind?

 


Dinner decisions are increasingly dynamic and evolving, driven by shifting consumer behaviors according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Remarkably, by noon, only 25% of consumers know what's for dinner, and by 4 PM, that figure climbs to just over 50%. This uncertainty presents a significant opportunity for those in the foodservice industry, particularly as generational preferences continue to shape dining habits. However, many legacy chain restaurants are struggling to keep up with these rapid changes, risking the loss of both market share and profitability.

Recent insights from Circana's "The Future of Dinner" report reveal that a staggering 81% of evening meals are sourced from the comfort of home, consumed with family or friends. This statistic underscores the growing trend of at-home dining, where convenience and comfort are paramount. Yet, the way different generations approach dinner is far from uniform, and it’s this divergence that legacy restaurants must understand—or risk being left behind.


Gen Z: The New Drivers of Dinner Decisions

Gen Z, the youngest cohort of adult consumers, is redefining what it means to eat dinner. Unlike previous generations, Gen Zers are more inclined to invest in special occasion dinners, honing their culinary skills while also seeking no-prep solutions. This generation values both the experience of cooking and the convenience of ready-to-eat options. According to Circana, half of all dinners are ready in 15 minutes or less, and Gen Z is leading this charge.

This generation's approach to dinner is not just about speed; it's about indulgence and enjoyment. Gen Zers are more likely to choose their favorite dishes for dinner or treat themselves to a meal as a reward. As they begin living independently, they lean on recipes and participate in more invested dinner occasions, yet they are also the most likely to opt for a no-cook dinner solution simply because they don’t want to cook.

With Gen Z expected to drive significant growth in categories like center-of-plate proteins, breakfast foods, and ready-to-eat snacks through 2026, the future of dinner is clearly in their hands. This shift is already influencing market trends, with combination dishes, such as rice bowls, poised for growth as Gen Z and Gen X both seek diverse, flavor-rich meal options.


Legacy Chains at Risk: A Failure to Evolve

While Gen Z is propelling the grocerant niche—where grocery stores offer restaurant-quality, fresh prepared meals—many legacy chain restaurants are lagging behind. These traditional chains have long relied on a static menu and service model that no longer aligns with the evolving preferences of modern consumers. The risk here is twofold: losing relevance with younger consumers like Gen Z, and failing to meet the convenience demands of Gen X, who prefer minimal-prep dinners with few ingredients.

Legacy chains are at a crossroads. The failure to innovate and adapt to these new consumer behaviors could lead to a significant capitulation in market share. As Gen Z continues to embrace the grocerant niche for its convenience and quality, and as Gen X turns to more diverse and flavorful options, traditional chains that do not evolve risk being sidelined.


The Grocerant Niche: A Solution for the ‘What’s for Dinner?’ Dilemma

For years, the grocerant niche has been quietly revolutionizing the way consumers approach meal planning, offering a mix of convenience and culinary satisfaction that resonates across generations. With 81% of evening meals being sourced from home, grocery stores that provide fresh, ready-to-eat meal components are perfectly positioned to capture the attention of both Gen Z and Gen X.

The key to success in this niche lies in offering customization and personalization. Consumers today want the freedom to mix and match meal components, tailoring their dinner to their specific tastes and dietary preferences. Grocerants that can provide this level of flexibility are not only meeting the immediate needs of today’s consumers but are also building long-term loyalty.



The Road Ahead: Adapting to Stay Relevant

As Gen Z continues to redefine the dinner landscape, it’s clear that the grocerant niche will only grow in importance. Legacy chains must take note and adapt quickly or risk obsolescence. The future of dinner is here, and it’s being driven by a generation that values both convenience and experience. Those who fail to evolve will be left behind, while those who embrace this new reality will thrive.

In this dynamic environment, the grocerant niche is not just a trend; it's the future of dining. Whether it's a quick meal solution for a busy Gen Xer or a special occasion dinner for a Gen Zer, the grocerant niche offers what consumers want—right now. It’s time for legacy chains to catch up, or they might just find themselves on the wrong side of the dinner table.

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


Are you Evolving?

Are you staying 

Relevant?




Thursday, August 29, 2024

Top Seven Multigenerational Restaurants

 


To get a better understanding what is working today in the restaurant sector, and what has been driving the undercurrent of ongoing success within the restaurant sector we asked Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® what his insights were.  Here is what he believes:

In the world of dining, few things are as powerful as a restaurant that appeals to multiple generations. In the minds-eye of our Grocerant Guru®, these multigenerational establishments have cracked the code, blending menu diversity, ambiance, and service excellence to cater to everyone from Baby Boomers to Gen Z. Here are the top seven multigenerational restaurants.  


1. McDonald’s

The Global Fast-Food Giant

·         Ubiquity and Accessibility: With over 38,000 locations worldwide, McDonald’s is a familiar name across all generations. Its accessibility and consistent menu make it a go-to choice for families on the move, with 75% of U.S. adults having eaten at McDonald’s in the past year, according to Statista.

·         Menu Adaptability: McDonald’s has successfully adapted its menu to suit changing tastes, offering healthier options like salads and fruit in Happy Meals, appealing to health-conscious Gen Z and Millennials while retaining classics like the Big Mac for older generations.

·         Value Proposition: The introduction of the Dollar Menu and value meals has kept McDonald’s affordable for families, particularly appealing to budget-conscious Gen X and Baby Boomers who prioritize value.

·         Cultural Relevance: McDonald’s consistently taps into cultural moments, from collaborations with celebrities to limited-time offerings, making it a relevant choice across all generations, particularly among Millennials and Gen Z who value trends and exclusivity.


2. Chick-fil-A

The Fast-Food Favorite with a Focus on Service

·         Exceptional Customer Service: Chick-fil-A is renowned for its customer service, which appeals to Baby Boomers and Gen X who value polite, attentive service, with over 83% of Baby Boomers rating it highly according to a YouGov survey.

·         Consistent Quality: Known for its high-quality chicken sandwiches, Chick-fil-A maintains a simple yet effective menu that resonates with older generations who appreciate consistency and younger customers who seek quality over quantity.

·         Family Values and Community Engagement: Chick-fil-A’s emphasis on family and community involvement appeals to all generations, with 67% of Gen X and Baby Boomers citing community impact as important in their dining choices.

·         Embracing Technology: Chick-fil-A’s mobile app and efficient drive-thru service cater to time-starved Millennials and Gen Z, making it a multigenerational favorite for both convenience and quality.


3. Olive Garden

The Italian-American Dining Classic

·         Comforting Menu Options: Olive Garden’s menu features Italian-American classics that resonate with older generations while offering modern twists like gluten-free pasta and lower-calorie options for health-conscious younger customers.

·         Affordable Family Dining: With endless breadsticks, salad, and pasta deals, Olive Garden provides an affordable dining experience that appeals to families across all generations, with 78% of Millennials reporting they dine out to save time and money.

·         Inviting Ambiance: Olive Garden’s warm, Tuscan-inspired decor creates a comfortable environment for Baby Boomers and Gen X, while its casual setting appeals to younger patrons looking for a relaxed dining experience.

·         Strong Brand Loyalty: Olive Garden’s commitment to customer satisfaction has cultivated strong brand loyalty across generations, with over 75% of their customers being repeat visitors, according to Technomic.


4. Cracker Barrel

The Southern Comfort Destination

·         Nostalgic Appeal: Cracker Barrel’s rustic, homestyle decor and menu filled with Southern comfort food have a strong appeal to Baby Boomers who seek a nostalgic dining experience, with 68% of them favoring traditional American cuisine.

·         Cross-Generational Menu: While the menu offers traditional favorites, Cracker Barrel has adapted with lighter fare and healthier options to appeal to Millennials and Gen Z, who prioritize health without sacrificing taste.

·         Strategic Locations: Positioned along highways and near travel stops, Cracker Barrel attracts a wide range of customers, from road-tripping families to older adults, with over 80% of its locations strategically placed to cater to travelers.

·         Retail Integration: The attached country store offers a unique shopping experience that appeals to Baby Boomers and Gen X, while younger generations appreciate the novelty, making it a multigenerational favorite.


5. Texas Roadhouse

The Steakhouse with a Kick

·         High-Quality, Affordable Dining: Texas Roadhouse’s focus on hand-cut steaks and made-from-scratch sides offers high-quality meals at reasonable prices, attracting budget-conscious Gen X and Baby Boomers who prioritize value.

·         Lively Atmosphere: The energetic environment, complete with line dancing and a casual vibe, appeals to younger customers looking for a fun dining experience, while the family-friendly setting ensures it’s a hit with all ages.

·         Loyalty Programs: Texas Roadhouse’s effective use of loyalty programs and digital engagement keeps them connected with younger customers while offering promotions that attract older generations.

·         Community Focus: Texas Roadhouse’s involvement in local communities and charity events resonates with all generations, especially Gen X and Millennials, who value businesses that give back.


6. The Cheesecake Factory

A Menu That Has It All

·         Extensive Menu Options: With over 250 items on the menu, The Cheesecake Factory caters to diverse tastes, ensuring there’s something for every generation, from Baby Boomers to Gen Z, who crave variety and inclusivity in dining.

·         Generous Portions: Known for its large portions, The Cheesecake Factory offers great value, appealing to Baby Boomers and Gen X who enjoy sharing dishes and getting their money’s worth.

·         Stylish Yet Comfortable: The upscale yet accessible ambiance makes it a popular choice for older customers who appreciate a refined dining experience and younger patrons who enjoy the modern, Instagram-worthy decor.

·         Iconic Desserts: The Cheesecake Factory’s extensive dessert menu, especially its famous cheesecakes, has cross-generational appeal, making it a go-to spot for celebrations and special occasions for families of all ages.


7. Panera Bread

The Fast-Casual Health-Conscious Choice

·         Healthy and Customizable Menu: Panera Bread’s focus on fresh, healthy options and customizable meals appeals to Millennials and Gen Z, who prioritize health and wellness in their dining choices. Over 70% of Millennials prefer restaurants that offer healthy menu items, according to the International Food Information Council.

·         Casual Yet Inviting: The casual, coffeehouse-like environment of Panera Bread attracts Gen X and Baby Boomers who enjoy a relaxed setting to dine and socialize, while its free Wi-Fi and work-friendly spaces appeal to younger generations.

·         Digital Integration: Panera Bread has embraced technology with its mobile app, delivery options, and loyalty programs, making it a convenient choice for time-strapped Millennials and Gen Z.

·         Commitment to Transparency: Panera’s dedication to transparency in ingredients and sourcing resonates with all generations, particularly Millennials and Gen Z, who value ethical and sustainable practices in their dining experiences.

Think about this; these seven restaurants have successfully captured the hearts and appetites of multiple generations by offering something for everyone. Their ability to balance tradition with innovation, cater to diverse tastes, and create welcoming environments makes them leaders in the multigenerational dining space.

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 participationdifferentiation 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



Wednesday, August 28, 2024

Pitfalls Transitioning from a Full-Time CEO to a Partly Present CEO

 


In the ever-evolving landscape of corporate leadership, one thing remains constant: the CEO’s presence is crucial to a company’s success. Now according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® there are serious fundamental flaws in Starbucks new leadership lineup.

Yet, with Brian Niccol’s transition from Chipotle to Starbucks, we’re witnessing a concerning trend where top executives are seemingly abandoning the tried-and-true model of full-time commitment in favor of what can only be described as a “Partly Present CEO.” Niccol’s supercommuting setup, with one foot in Newport Beach and the other in Seattle, is a recipe for disaster—and here’s why.

1. Fragmented Leadership Equals Fragmented Vision

Leadership isn’t just about making the right decisions; it’s about being there to implement them, to lead by example, and to inspire a workforce. Niccol’s plan to split his time between Seattle and Newport Beach, commuting over 1,000 miles on a corporate jet, creates a fragmented leadership approach. Starbucks, a brand already struggling with declining same-store sales and customer dissatisfaction, needs a leader who is fully embedded in its culture and operations. A partly present CEO risks missing the nuances of day-to-day operations, leading to a fragmented vision and strategy that could further destabilize the brand.


2. The Cost of Corporate Jet Setting

Let’s talk dollars and sense—or in this case, the lack thereof. Starbucks’ decision to accommodate Niccol’s bi-coastal lifestyle by providing a corporate jet for his commute isn’t just an extravagant expense—it’s a slap in the face to the company’s stakeholders. While employees are asked to adhere to hybrid work policies and show up to the office three days a week, Niccol’s arrangement reeks of double standards. At a time when Starbucks’ stock has plummeted by over 21 percent and the brand is hemorrhaging customers, how can this kind of financial irresponsibility be justified?

3. Erosion of Corporate Culture

The Starbucks culture, once a beacon of community and connection, is already in peril. With Niccol choosing to remain largely in Newport Beach, the potential erosion of the company’s culture is inevitable. Corporate culture is not something that can be maintained remotely or during brief fly-in visits. It requires a constant, on-the-ground presence. The shift to a partly present CEO could lead to a disconnection between leadership and employees, further eroding the “third place” ethos that Starbucks was once known for.


4. The Illusion of Flexibility

Niccol’s arrangement is being framed as a modern approach to leadership flexibility in a tight labor market, but let’s call it what it is: an illusion. Flexibility in leadership should be about adapting to the needs of the company, not bending the company’s operations around the personal preferences of the CEO. While the rest of the workforce grapples with the realities of hybrid work, Niccol’s flexibility is a stark contrast that could breed resentment and diminish morale within the ranks.

5. The Danger of Outsourcing Accountability

A partly present CEO inherently outsources accountability. By not being physically present, Niccol risks losing touch with the day-to-day challenges and opportunities that arise within Starbucks. Decision-making from afar, no matter how connected one might feel through digital tools, is no substitute for the boots-on-the-ground leadership that Starbucks desperately needs right now. With declining domestic traffic and shrinking transactions, Starbucks needs a leader who is not just visible, but actively engaged in turning the tide.


6. The Risk of Losing Stakeholder Trust

Trust is the currency of leadership, and Starbucks is running low. Stakeholders—be they employees, customers, or shareholders—are already wary after the turbulent tenure of Laxman Narasimhan. Niccol’s decision to prioritize personal convenience over corporate commitment could further erode trust at a time when Starbucks can least afford it. The message being sent is clear: the CEO’s personal life takes precedence over the company’s future, and that’s a perilous precedent to set.

7. The Supercommuting CEO: A Short-Term Fix, Long-Term Liability

Niccol’s impressive track record at Chipotle cannot be denied, but his success there was built on a foundation of full-time leadership and immersion in the company’s operations. His new supercommuting role at Starbucks may offer a short-term fix to the company’s leadership void, but it’s a long-term liability. The demands of a global brand like Starbucks require more than a part-time presence—they require a leader who is fully invested, both physically and mentally, in the company’s success.


Think about this, the pitfalls of transitioning from a full-time CEO to a partly present CEO are glaringly evident in Niccol’s move to Starbucks. As the Grocerant Guru®, I can tell you that in the competitive world of food and beverage, leadership isn’t just about making decisions—it’s about being there to ensure those decisions are carried out effectively. Starbucks is gambling with its future by accommodating Niccol’s bi-coastal lifestyle, and it’s a bet that could cost them dearly. The success of any company hinges on the strength and presence of its leadership, and right now, Starbucks is being led by a CEO who is only partly there.

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