Perkins: How Long Can They Last in a Price War?

In the ever-evolving landscape of American dining, value is king. Perkins American Food Co, with its rebrand from Perkins Restaurant & Bakery®, is making a bold move in the ongoing price war with the introduction of its Great American Trio. However, according to Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® the real question remains: how long can Perkins sustain this strategy amidst fierce competition?

The Great American Trio: A Strategic Play

Perkins’ latest offering, launching on July 19, is positioned as "America’s best value breakfast." The Great American Trio features three budget-friendly breakfast options:

• 5 Under $5: Two buttermilk pancakes, two Applewood smoked bacon strips, and one egg at $4.99.
• 6 Under $6: Two buttermilk pancakes, two Applewood smoked bacon strips, and two eggs at $5.99.
• 7 Under $7: Three buttermilk pancakes, two Applewood smoked bacon strips, and two eggs at $6.99.

Toni Ronayne, President of Perkins American Food Co., emphasizes the brand’s 65-year tradition of delivering value and quality. This move is a clear attempt to capture budget-conscious diners who are increasingly seeking affordable yet satisfying meal options.

A Historical Perspective on Price Wars

Price wars are not new to the restaurant industry. Historically, these battles have reshaped the competitive landscape, driving some players to innovate while others falter. Let's look at some notable examples:

1. Burger Wars of the 1980s: McDonald’s, Burger King, and Wendy’s engaged in aggressive price-cutting and promotions. While McDonald’s emerged stronger, others struggled to maintain profit margins, leading to closures and re-strategizing.
2. Dollar Menu Decades: In the early 2000s, the introduction of dollar menus by fast-food giants forced many to follow suit. This strategy drew in value-seeking customers but squeezed profit margins, pushing brands to find a balance between value and profitability.
3. Breakfast Battles: In recent years, chains like McDonald’s and Taco Bell have fought fiercely over the breakfast crowd, introducing value menus and breakfast-specific promotions. This has intensified competition and forced others to innovate or risk being left behind.

Perkins’ Current Strategy

With the Great American Trio, Perkins is banking on its ability to deliver consistent value while maintaining quality—a challenging feat. Diana Garcia-Lorenzana, Vice President of Marketing, highlights that today’s families are more price-sensitive than ever. The new trio of offerings aims to address this need directly.

Building a Larger Share of Stomach

Requires More than PRICE

Sustainability in a Price War

The key to surviving a price war lies in maintaining operational efficiency and customer loyalty. Perkins’ strategy of serving breakfast all day, combined with the perceived value of its offerings, positions it well in the short term. However, the long-term sustainability will depend on several factors:

• Operational Efficiency: Keeping costs low while delivering quality is paramount. This includes managing supply chains, optimizing staffing, and leveraging technology for better service.
• Customer Loyalty: Creating a loyal customer base that values the brand beyond just the price. This can be achieved through exceptional service, consistent quality, and targeted marketing efforts.
• Innovation: Continuously evolving the menu and dining experience to stay ahead of competitors. This includes introducing new items, enhancing the dining atmosphere, and adopting new technologies.

Think About This

Perkins’ Great American Trio is a compelling play in the ongoing price war. The brand's commitment to value and quality, rooted in its 65-year history, gives it a strong foundation. However, the challenges of sustaining such aggressive pricing strategies are real. As history has shown, the winners in price wars are those who can innovate, maintain operational efficiency, and build lasting customer loyalty. Perkins is off to a strong start, but only time will tell if they can endure the pressures of the battlefield. For now, diners can enjoy America’s best value breakfast, all day, every day.

Fun Fact

Did you know that Perkins serves more than 150 million pancakes annually? That’s enough to create a pancake trail from New York to Los Angeles and back! Now, with the Great American Trio, that number is bound to rise as more customers flock to Perkins for their unbeatable breakfast deals.

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. Contact: Steve@FoodserviceSolutions.us or 253-759-7869 

Chick-fil-A: Integrating Interactive Food Marketing for Consumer Loyalty and Profitability

In the ever-evolving landscape of food marketing, Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that Chick-fil-A continues to lead the charge with innovative, consumer-focused strategies. This summer, Chick-fil-A is captivating customers with its engaging interactive digital game, Code Moo. This initiative not only strengthens customer loyalty but also drives top-line sales and bottom-line profits, embodying the core principles of effective grocerant marketing.

Code Moo: A Digital Game that Delivers

From July 22 through August 17, Chick-fil-A invites fans to immerse themselves in the world of Code Moo. This interactive digital game, accessible via the Chick-fil-A App, takes users on a thrilling car racing mission to thwart Circus Burger and spread the beloved 'Eat Mor Chikin' message. Players can choose their favorite cow character and vehicle, navigating a four-course mission to earn weekly food rewards. This gamified experience seamlessly blends entertainment with tangible rewards, enhancing customer engagement and loyalty.

Building Loyalty Through Engagement

Chick-fil-A's strategy to engage customers through participatory marketing is not new, but the execution of Code Moo is a masterclass in leveraging digital platforms for brand interaction. By offering Chick-fil-A One members the chance to win food rewards through gameplay, the brand ensures repeated interaction and sustained interest. Each new mission, launching every Monday, keeps the content fresh and the customers coming back, fostering a sense of anticipation and excitement.

Multifaceted Marketing Approach

Dustin Britt, senior director of brand strategy, investment, and entertainment at Chick-fil-A, highlights the diverse ways the brand is bringing the iconic Cows to life this summer. Beyond the digital game, Chick-fil-A is engaging customers with a new animated short film, "Rocky Road," and a line of cow-themed merchandise. These additional touchpoints enrich the customer experience, creating a cohesive and immersive brand environment.

The Power of Storytelling

The animated short film, "Rocky Road," features the adventurous Cows, Carrots, Sarge, and Daisy, in a high-speed mission to rescue their friend. This family-friendly film is available for viewing at playCodeMoo.com/film, adding a narrative layer to the Code Moo experience. By weaving storytelling into its marketing strategy, Chick-fil-A deepens emotional connections with its audience, making the brand more memorable and relatable.

Merchandise and In-Restaurant Activities

To complement the digital and cinematic experiences, Chick-fil-A introduced the "Chick-fil-A Cow Collection." This line of cow-centric merchandise, available online and in participating restaurants, allows fans to express their love for the brand in a fun and stylish way. From clothing and accessories to plush cows and keychains, these items serve as physical reminders of the enjoyable experiences Chick-fil-A offers, further cementing customer loyalty.

Driving Sales and Profitability

Chick-fil-A's interactive and participatory marketing efforts do more than just entertain; they translate into increased sales and profitability. The digital game and merchandise sales provide direct revenue streams, while the enhanced customer loyalty leads to repeat visits and higher spending. By creating an engaging and rewarding customer journey, Chick-fil-A effectively boosts both its top-line sales and bottom-line profits.

Think About This

Chick-fil-A's integration of consumer-focused interactive and participatory food marketing exemplifies the power of innovative strategies in building brand loyalty and driving profitability. Through Code Moo, the brand not only entertains its customers but also fosters lasting relationships, ensuring that the 'Eat Mor Chikin' message resonates well beyond the summer. As the Grocerant Guru®, I can confidently say that Chick-fil-A's approach is a blueprint for success in the modern foodservice landscape.

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. 

Scoop Up Sales with Ice Cream in Mix-and-Match Meal Bundling

 

National Ice Cream Day refocused the team at Tacoma, WA based Foodservice Solutions® that Ice Cream is important to most Americans in the good old summertime.  A new Gopuff report dives into consumers' ice cream preferences and highlights how ice cream can play a crucial role in mix-and-match meal component bundling.

By analyzing orders across the country and surveying customers, the report recaps the most popular frozen treats, reveals unexpected pairings, and uncovers the U.S. cities that ordered the most ice cream in 2024. As the Grocerant Guru®, let's explore how these insights can drive incremental sales for both Baby Boomer and Gen Z consumers through innovative meal bundling.

Chocolate vs. Vanilla: The Classic Duel

In the timeless battle between chocolate and vanilla, Gopuff's survey reveals a narrow victory for vanilla, with 56% of respondents choosing it over chocolate's 44%. This classic rivalry showcases the diverse preferences that can be leveraged to create engaging mix-and-match meal bundles, allowing customers to choose their favorite flavors and enjoy a personalized dining experience.

Nationwide Favorites: A Pint-Sized Powerhouse

Ice cream's popularity on Gopuff is undeniable, with Ben & Jerry's Half Baked pint reigning supreme for nearly a decade. This beloved flavor, along with other top picks like Cookies & Crème, Strawberry, Pecan Praline, Cookie Dough, and Mint, can be seamlessly integrated into meal deals and dessert pairings. Offering these popular pints as part of a meal bundle can entice customers to indulge in a complete dining experience that ends on a sweet note.

Ice Cream Novelties: A Nostalgic Treat

Gopuff customers also have a penchant for ice cream novelties such as Reese's Peanut Butter Ice Cream Bar, Bubbies Hawaii Strawberry Mochi Ice Cream, and M&M's Vanilla Ice Cream Cookie Sandwich. These nostalgic treats can be included in meal bundles to evoke fond memories and create a sense of delight for both Baby Boomers and Gen Z consumers.

Top Toppings: Elevating the Experience

When it comes to toppings, Gopuff's survey highlights the five most popular choices: Oreos (18%), whipped cream (13%), brownies (10%), chocolate sauce (10%), and sprinkles (9%). These toppings can be offered as add-ons in meal bundles, allowing customers to customize their ice cream experience.

Moreover, unconventional toppings such as gummies, pickles, potato chips, bacon, cereal, French fries, boba, and olive oil highlight a growing trend of adventurous and salty flavor pairings. Incorporating these unique toppings into meal bundles can cater to adventurous eaters looking for a novel culinary experience.

Top Cities for Ice Cream: A Sweet Spot

Gopuff's findings reveal the top five U.S. cities that love to treat themselves with ice cream based on the percentage of orders containing ice cream:

·         Auburn, Ala.: 33% of orders contain ice cream (Most popular flavor: Ben & Jerry's Half Baked Ice Cream Pint)

·         Hartford, Conn.: 31% of orders contain ice cream (Most popular flavor: Ben & Jerry's Milk & Cookies Ice Cream Pint)

·         Providence, R.I.: 30% of orders contain ice cream (Most popular flavor: Ben & Jerry's Milk & Cookies Ice Cream Pint)

·         Birmingham, Ala.: 30% of orders contain ice cream (Most popular flavor: Ben & Jerry's Half Baked Ice Cream Pint)

·         Madison, Wis.: 30% of orders contain ice cream (Most popular flavor: Ben & Jerry's Half Baked Ice Cream Pint)

Targeting these cities with special ice cream meal bundles can drive sales and cater to their sweet tooth.

Timing and Preferences: Sweet Sales Opportunities

More than a quarter of ice cream sales occur between 8 p.m. and 10 p.m., with Sunday being the most popular day for ice cream orders (17% of sales). Promoting meal bundles that include ice cream during these peak times can capitalize on customers' cravings and drive incremental sales.

When it comes to eating preferences, 52% of people prefer a cup and cone combo, followed by a cone (34%) and a cup (14%). Additionally, 63% of people enjoy eating ice cream straight from the pint, while 37% prefer scooping it into a bowl. Understanding these preferences allows Gopuff to create meal bundles that cater to the convenience and enjoyment of eating ice cream directly from the container.

Think About This: Sweetening the Deal

By offering mix-and-match meal component bundling, Gopuff can elevate ice cream from a simple treat to a versatile meal component. This strategy not only drives customer engagement and satisfaction but also boosts incremental sales by appealing to the diverse tastes of both Baby Boomers and Gen Z consumers. So, let's scoop up success by incorporating ice cream into our meal bundles and sweeten the deal for everyone.

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

KFC In The Dark: No Need for Sunglasses

 

In the ever-evolving landscape of the quick-service restaurant (QSR) industry, KFC has managed to stay relevant and beloved by many. However, as the Grocerant Guru®, it’s my duty to shed light on areas where even giants like KFC might be lagging. So, let’s take off the rose-tinted glasses and dive into some areas where KFC could brighten its future.

The Dim Areas

1.       Digital Transformation: In an era where digital convenience is king, KFC’s online ordering and delivery systems need a major upgrade. According to the National Restaurant Association, 60% of U.S. consumers order delivery or takeout once a week. KFC must streamline its app and website for seamless navigation and quick orders to keep up with consumer demands.

2.       Menu Innovation: While the Colonel’s original recipe is a timeless classic, today’s consumers crave variety. KFC’s limited menu innovation, particularly in healthier options, could be a dark spot in its strategy. NielsenIQ reports that 80% of Millennials and Gen Zers are willing to pay more for healthier food options. It’s time for KFC to expand its menu to include more plant-based and low-calorie choices.

3.       Sustainability Practices: With the growing concern over environmental issues, sustainability is no longer a choice but a necessity. KFC’s current efforts in sustainable sourcing and packaging fall short compared to its competitors. According to a study by IBM, nearly 70% of consumers in the U.S. and Canada think it’s important that a brand is sustainable or eco-friendly. KFC needs to illuminate its sustainability efforts to win over environmentally-conscious customers.

Bright Ideas for the Future

1.       Enhanced Digital Experience: Investing in AI-driven technology to personalize the customer experience online can drive higher engagement and sales. Imagine a KFC app that remembers your favorite orders, suggests new items based on your taste, and offers exclusive deals.

2.       Diverse Menu Offerings: Introducing a rotating menu that features limited-time offerings, regional specialties, and healthier alternatives can attract a broader customer base. How about a spicy plant-based chicken sandwich or a low-carb chicken bowl?

3.       Sustainability Commitment: KFC can make a bold move by committing to 100% recyclable packaging and sourcing chicken from farms that follow strict animal welfare standards. Partnering with sustainability organizations can enhance its credibility and appeal to eco-conscious consumers.

4.       Community Engagement: Engaging with local communities through sponsorships, charity events, and collaborations with local farmers can create a stronger brand connection. Highlighting these efforts on social media can amplify their impact.

5.       Embracing Technology in Stores: Implementing self-service kiosks and digital menu boards in stores can enhance the dining experience and reduce wait times. According to a study by Tillster, 65% of customers said they would visit a restaurant more often if self-service kiosks were available.

Think About This

KFC’s journey through the dark doesn’t require sunglasses but a clear vision for the future. By embracing digital transformation, innovating its menu, committing to sustainability, engaging with communities, and integrating technology in-store, KFC can shine brighter than ever. As the Grocerant Guru, I see a future where KFC not only satisfies cravings but also leads the way in the QSR industry. So, here’s to KFC lighting up our culinary world with innovation and purpose!

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

Grocerant Guru Insights: Family Dining Trends Revealed by Affinity Group

 

As families juggle busy schedules and seek ways to save time and effort, dining out has become an essential part of their routine. Let’s dive into some key findings from a recent survey of 491 families, brought to you by the Affinity Group, with an added touch of insights from the Grocerant Guru!

Increased Dining Out: A striking 74% of families report dining out more often this year compared to last. This significant rise is driven by the need to save time and reduce the effort of meal preparation. Did you know that only 35% of people know what they want for dinner by noon, and this figure only rises to 55% by 4 PM? It's no wonder families are opting for the convenience of dining out!

Convenience and Value: Convenience is king, with 60% of families dining out specifically to save time and effort. Meanwhile, 42% are looking for good value for their money, showing that affordability is also top of mind.

Variety Matters: 41% of families prioritize having a diverse selection of menu options, showing a strong demand for variety. This diversity ensures that every family member can find something they love, making dining out a more enjoyable experience.

Economic Considerations: With 58% of respondents actively looking for deals and discounts before deciding on a restaurant, it's clear that affordability plays a crucial role in dining decisions. Special offers and promotions can be the deciding factor in where families choose to dine.

About the Grocerant Guru®: Known for delivering insights that bridge the gap between grocery and restaurant industries, the Grocerant Guru brings data-driven analysis and fun facts to help businesses thrive in a competitive market.

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  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

SONIC Drive-In Dives into SEC Football Frenzy as Official Quick-Service Restaurant!

Hey there, sports fans and food lovers! Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® is here with some electrifying news that will have you buzzing with excitement! SONIC Drive-In, the champions of craveable food and fun, have teamed up with the Southeastern Conference (SEC) and SEC Network in a game-changing, multi-year sponsorship. That's right, folks—SONIC is now the "Official Quick Service Restaurant of the SEC!"

This partnership started this July 1st, SONIC is hitting the gridiron with SEC football programming and productions across SEC Network, ABC, and ESPN. This isn't just a touchdown—it's a game-winning play for everyone involved!

“SONIC has always been in the heart of college and professional sports for the past 70 years, and we couldn’t be prouder to rally with our fans as the Official Quick Service Restaurant partner of the SEC,” said Ryan Dickerson, Chief Marketing Officer of SONIC. “The SEC’s expanded reach means we’re closer than ever to our amazing guests and team members across the Southeast. We’re ready to bring the fun to college football this season—whether we’re at the pre-game tailgate or the afterparty, you can count on SONIC to be part of the action all season long.”

Now, let's talk about why this is a monumental win for SONIC and the SEC. Gen Z and Millennials are redefining the sports fandom landscape, and they crave experiences that go beyond the game. By aligning with the SEC, SONIC is capturing the hearts (and stomachs) of these dynamic, digital-savvy generations. Did you know that 62% of Millennials are avid sports fans, and Gen Z isn't far behind at 53%? These generations are social media mavens, amplifying their game day experiences across platforms, creating a ripple effect that drives brand loyalty and engagement.

Imagine the thrill of seeing SONIC's mouth-watering commercials during the “SEC on ABC” college football franchise and ABC/ESPN Noon College Football windows, all while connecting with fans on SEC Network. This isn’t just advertising; it’s an immersive experience that brings SONIC's vibrant energy to every home, tailgate, and watch party.

“At Disney, we’re passionate about developing unique opportunities for brands to connect with college football fans everywhere. This season, we are thrilled to welcome SONIC Drive-In as the Official Quick Service Restaurant of the SEC,” said Andrew Messina, SVP of Sales, Disney Advertising. “With SONIC on board, the fan experience will reach new heights for SEC fans across all Disney platforms.”

But wait, there’s more! SONIC is taking their game-day presence to the next level with on-site activations through SEC Nation, the network’s traveling football pre-game show, and other exciting opportunities throughout the season. Picture this: the smell of crispy tots and juicy burgers filling the air as you cheer on your favorite team. That's the kind of fan experience SONIC is bringing to the table.

“We are pleased to welcome SONIC as an official sponsor of the Southeastern Conference,” said SEC Commissioner Greg Sankey. “The SEC sponsor program is important to the mission of supporting SEC athletics programs and their student-athletes. The addition of SONIC strengthens an already robust family of sponsors for the Conference, and we look forward to SONIC’s participation in our programming and championship events.”

So, gear up, grab your favorite SONIC snack, and get ready to experience SEC football like never before. This partnership is a recipe for fun, flavor, and unforgettable moments. Let's make this season one for the record books, together!

Stay tuned, stay hungry, and let's celebrate this epic collaboration with SONIC and the SEC!

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.