Thursday, March 28, 2024

7 Reasons Dynamic Pricing will not work for Chain Restaurants

 


Chain restaurants need to be continually looking a customer ahead, if they take the eye off today’s customers, tomorrows customers won’t be there either. While consumers are dynamic not static, they are also penny wise, not pound foolish according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® simply stated they know what a meal cost, even more important they know what your meal cost.

There are some potential pitfalls for chain restaurants implementing dynamic pricing. Here are 7 reasons why it might not be the best fit:


1.       Customer Perception: People might view fluctuating prices as unfair or even price gouging, especially for familiar menu items at a chain known for consistency (https://www.capterra.com/resources/dynamic-pricing-for-restaurants/).

2.       Budget Busters: Chain restaurants are often budget-friendly options. Dynamic pricing could throw a wrench into customer's plans and make it harder to predict spending.

3.       Friction and Frustration: Imagine wanting a burger and fries for lunch, only to find out it costs more than dinner because of a lunch rush. This complexity could frustrate diners and slow down decision-making.

4.       Value vs. Price: Unlike airlines with limited seats, chain restaurants can usually handle increased demand. Customers might question paying more for the same food they know they can get elsewhere.

5.       Promotional Hurdles: Chain restaurants often run promotions and deals. Dynamic pricing could make these promotions confusing or even negate their effectiveness.


6.       Tech Investment: Implementing and maintaining digital menu boards and systems to track and adjust prices requires a significant technological investment.

7.       Brand Identity Clash: Chain restaurants rely on brand recognition and a sense of consistency. Dynamic pricing could introduce an element of unpredictability that clashes with the established brand image.

While dynamic pricing might work for other industries, these factors suggest it could backfire for chain restaurants. They might be better off focusing on value, consistency, and targeted promotions to attract customers.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.



Wednesday, March 27, 2024

Marketing Brand Relevance Subway’s Way



Renew, Refresh, and Revive the undercurrent of brand excitement is but one of the goals Subway is undertaken with its partnership with T. Marzetti Co. to sell their popular sauces in grocery stores according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Here a few potential benefits to Subway:

1.       Increased brand awareness: By placing Subway-branded sauces in front of consumers at grocery stores, Subway increases its brand visibility beyond their restaurants. This can especially be effective if the sauces are displayed prominently or included in promotional campaigns.

2.       Enhanced customer experience: Fans of Subway's flavors can now enjoy them outside the restaurant, potentially leading to increased satisfaction and loyalty. This can also encourage customers to visit Subway restaurants for the full sandwich experience.

3.       Potential for new revenue streams: The partnership with T. Marzetti allows Subway to tap into the revenue generated from grocery store sales of their sauces.

4.       Innovation and recipe inspiration: The collaboration may lead to new recipe ideas that incorporate the sauces, both for customers at home and potentially for future menu items at Subway.


Overall, this partnership can help Subway revitalize its brand image by showcasing their signature flavors in a new way and potentially attracting new customers. Doing good, drives valued consumer focused brand messaging according to Johnson.

That said, Subway is teaming with the T. Marzetti Co., a specialty food manufacturer, to offer four sauces at groceries and other food retailers. The four flavors offered would benefit the Fresh Start Scholarship Fund and be:

·         Sweet Onion Teriyaki

·         Roasted Garlic Aioli

·         Baja Chipotle

·         Creamy Italian MVP (not offered in restaurants)

Paul Fabre, Subway’s senior vice president for culinary and Innovation, stated, “Three of the new retail sauces – Sweet Onion Teriyaki, Roasted Garlic Aioli and Baja Chipotle – are inspired by guests’ in-restaurant favorites, and we’ve added an exclusive flavor to this collection with a Creamy Italian MVP, a new twist on Subway’s MVP Parmesan Vinaigrette®.”



Fabre continued, “This partnership takes our sauces to another level and enables our fans to take their culinary creations from ordinary to extraordinary while also contributing to an important cause.”

Recently more and more fast-food outlets have been expanding their sauces to other items as well. Chicago-based McDonald’s Corp. last year made a limited-time offer of dip-packaged Big Mac sauce for other menu items. And KFC, in 2020 offered its KFC sauce and added other flavors since.

Expanding the halo of ‘better for you’, Subway's consumer program helps support the Fresh Start Scholarship Fund, which offers tuition assistance to Subway restaurant employees. Scholarship recipients receive $2,500 toward their secondary education. Since its inception, more than 1,700 scholarships have been awarded.

Carl Stealey, president of T. Marzetti’s retail business, said, “We’re honored that Subway trusted T. Marzetti to help build on that legacy and bring their sauces to kitchens across the country through this exclusive licensing agreement.”


Subway’s four 16-ounce bottled sauces are rolling out now to select U.S. grocers and retail stores including Walmart, Kroger and Albertson’s. More groceries are expected to be added.

Are you looking for new customers? Do you want to keep your current customers while building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

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. 



Tuesday, March 26, 2024

The Grocerant Guru Takes a Look at Hamburger Helper's Refresh

 


Retailers take notice, it's the Grocerant Guru® here with some insights on a recent brand refresh that caught my eye. Let's talk Hamburger Helper! Regular readers of this blog know that consumers are dynamic not static.

Now we all know many legacy brands need a little sprucing up. Eagle Foods, based in Cleveland, Ohio, knows this well. They've been busy giving the 50-year-old Hamburger Helper a makeover, along with its animated mascot Lefty. They acquired the brand from General Mills in 2022 and have been working their magic.

Eagle Foods revamped the packaging, updated the recipe with tastier flavors, and even introduced new varieties. They understand that today's shoppers are all about convenience, affordability, and of course, deliciousness.

They hit the market with the refresh pretty quickly, in about 18 months. This speed reflects two things: first, the growing popularity of quick and easy one-pan meals, and second, Eagle Foods' focus on revitalizing their stable of legacy brands.

Another food reporter recently visited Eagle Foods' brand new innovation center near Chicago. Here is some of what she had to say, it's a hub for creativity! Mala Wiedemann, the company's EVP of marketing and R&D, filled her in on their approach.


Eagle Foods is young, but their brands are veterans. "We love finding brands with strong foundations and growth potential, especially those that might be underutilized," Wiedemann explained. They target brands that could benefit from a fresh perspective, whether they're family-owned businesses or lost in the shuffle of a larger company.

Eagle Foods focuses on the center store, an area they believe is often neglected by grocers but gets a lot of shopper traffic. "Convenience meals are timeless," Wiedemann said. "Hamburger Helper was a hit in 1970 because it was easy and tasty, and that's still true today. We're not changing its core identity; we're just making it modern and tastier."

This message is clear in their new marketing campaign that launched mid-February.

The innovation center was buzzing with activity. She saw Eagle's food scientists developing new flavors, from a natural caramel corn to a Green Goddess Suddenly Pasta Salad. They even showed me a sneak peek of a new single-serve, microwaveable Hamburger Helper cup coming later this year!


"We invested in this space to drive innovation," Wiedemann explained. "We know it's key to our growth and to the success of our retail partners."

Eagle Foods isn't just focused on the present, they're looking to the future too. "Legacy brands can resonate with younger generations," Wiedemann said. "Gen Z loves to cook and explore new things, and that creates a lot of opportunities."

So, there you have it folks. Hamburger Helper's refresh is a great example of how to revitalize a legacy brand for the modern shopper. Keep an eye on Eagle Foods, they're shaking things up in the center store, and that's good news for all of us!  Consumers are not static they are dynamic.  Brands need to be dynamic as well.

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. 



Monday, March 25, 2024

Gen Z Grocery Shopping More Like Grandpa

 


There is nothing like starting off a new blog with a quote from William Shakespeare.  Well, here we go, “What’s past is prologue”. We are talking today about Gen Z grocery shopping habits and those of their grandparents, baby boomers. According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® in his household’s family tree it’s clear the ‘apple did not fall far form the tree’!

So, with the cost of living crisis set to continue and inflation reaching its peak, the UK's leading Out of Home media and infrastructure company Clear Channel has released a new study focusing on consumer shopping behavior in the UK. Based on a study of 2,000 respondents, it offers fascinating insights into the top ways the cost-of-living crisis has affected consumer buying behavior, ways Brits prefer to shop for groceries, key drivers for product selection when shopping for groceries and impulse purchasing trends.


According to Clear Channel’s report, 75% of people have had to change their grocery shopping behavior due to the cost-of-living crisis. More than one in five reported cutting down on essentials.
Perhaps unsurprisingly, the report revealed that nearly half of shoppers (45%) are cutting down on luxuries and treats while 38% of people are doing their best to avoid impulse purchases. Other ways of adapting to the cost-of-living crisis include shopping at cheaper supermarkets (37%), swapping usual brands for own labelled goods (35%), and shopping less frequently to avoid overspending (26%). Only 13% of Brits didn’t have to adjust their spending in the wake of the financial insecurity.
Clear Channel’s research also revealed that an immense 96% of Brits prefer to shop in stores than online. Surprisingly 16-24-year-olds behave more like Boomers than Millennials when it comes to grocery shopping behavior, with 59% stating they prefer to shop in person than online - the same preference as their Boomer counterparts.
When it comes to the main reasons why British consumers favor in-store shopping, being able to immediately assess a product’s quality (63%) plays a key role. Immediate availability of the product (53%) and being able to obtain better deals (43%) round out the top three main reasons for shopping in person. Nearly one in three believe they are more likely to discover new products, while 25% of Brits value the in-store customer experience.

Key findings from the survey:
- 96% of Brits shop in stores, with 45% preferring to shop in stores only, 8% online only and 46% shopping both in-store and online.
- Key drivers for product selection are discounts (65%), the cheapest price on the market (37%) and products from a well-established brand (27%).
- One in 10 Brits impulse buys every time they shop.
- Residents in Plymouth, Brighton, Newcastle, London and Liverpool are the most likely to make impulse purchases.
- Food (55%), clothes (29%), drinks (25%), takeaways (24%) and household items (23%) are the top impulse purchase categories in the UK.
- The top impulse purchase categories for men are food (55%), drinks (31%) and takeaways (24%) while for women are food (54%), clothes (35%) and household items (26%).



Ben Hope, Marketing Director at Clear Channel UK, said:
‘’In light of the ongoing economic uncertainty and its effect on consumers, we looked to conduct a study that would help brands to better understand buying behavior. The potential for communicating brand messages through in-store and Out of Home advertising is still as relevant as ever, as shoppers are refusing to compromise on the experience they have by shopping in-store, even if their goal is to spend slightly less. What might surprise many is the trend for the younger 16-24 generation towards the physical in-person experience ‘’.

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



Sunday, March 24, 2024

Here are the most popular foods for those watching NCAA Basketball Tournament

 


There is but one problem in the Grocerant Guru’s house this time of year.  That problem is a desire to consumers some of all the top popular foods for watching NCAA Basketball Tournament every game! Even with family and friends visiting, watching are rooting for teams they some never even heard of all of the popular food at one sitting is simply too much.  I will note he and his friends are now old!  No matter how much they don’t want to be this time of year.

The question is which of these popular food items are you selling, delivering, or bundling to edify your customers experience watching the game at home or at your location? 


All that said, while there isn't an official ranking of the top ten, here are some popular foods for NCAA Basketball Tournament gatherings according to recent grocerant scorecards and google:

Pizza: A college staple, perfect for feeding a crowd with various topping preferences

Wings: A game day favorite, though maybe get boneless for less mess

Nachos: A build-your-own crowd-pleaser with chips, cheese, and various toppings

Dips and Chips: Easy finger food, with options like queso, guacamole, salsa, or hummus with various chip options

Burgers: Great for grilling or a fancier option with toppings like bacon and guacamole

Cheesy Appetizers: Crowd favorites include mozzarella sticks, cheese fries, or jalapeno poppers

Snack Mix: A customizable mix of salty and crunchy snacks like pretzels, popcorn, nuts, and Chex Mix

Sliders: Mini burgers perfect for party portions

Appetizer Sampler Platter: Offer a variety of finger foods like veggies and dip, mini quiches, or pigs in a blanket

Local or Themed Food: Show team spirit with regional favorites or dishes inspired by the teams' mascots

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

 





Saturday, March 23, 2024

7 reasons Food Hall concept Wonder May outlast many legacy Restaurant Chains

 


Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that the delivery-centric food hall startup Wonder, founded by entrepreneur Marc Lore that has now raised $1.5 billion to date and plans to expand to 90 locations by the end of next year just might outlast many current legacy restaurant chains. 

Why, Wonder is built to evolve with consumers, the brand is not static it is built to be dynamic and he is not the only one to think so.  Consider this Wonder has recently raised $700 million to help scale its ambitious business model that is no guarantee but it is a step in the right direction.  

 


Here are Johnson’s 7 reasons why Wonder, the delivery-centric food hall concept, might have an advantage over some legacy restaurant chains:

1.       Variety and Convenience: Wonder offers a wider variety of cuisines under one roof, catering to diverse customer preferences. This allows people to choose from different restaurants without leaving the location, perfect for groups with indecisive eaters.

2.       Delivery Optimization: The layout and operations of Wonder can be optimized for delivery services. This could include designated pick-up areas for drivers and packaging designed for travel.

3.       Lower Overhead Costs: Wonder might share operational costs like rent, utilities, and some staff across multiple restaurants. This could potentially lead to lower overhead compared to a single-concept restaurant chain.

4.       Adaptability to Trends: Wonder can introduce new restaurant concepts or cuisines quickly based on customer demand. Legacy chains might take longer to adapt menus or open new concept restaurants.

5.       Technology Integration: Wonder can leverage technology for ordering, payment, and delivery, potentially leading to a smoother customer experience.

6.       Focus on Takeout & Delivery: Wonder caters directly to the growing trend of online food ordering and delivery, which many legacy chains might be struggling to adapt to.

7.       Community and Experience: Wonder, if designed well, can create a vibrant atmosphere where people gather and socialize, even if they're primarily ordering for takeout or delivery. This can be a draw compared to a standard chain restaurant solely focused on the meal itself.


All that said,

·         Wonder's success depends on factors like execution, location, and maintaining a critical mass of restaurants.

·         Legacy chains have brand recognition and established customer loyalty that Wonder will need to overcome.

While Wonder has potential advantages, the restaurant industry is competitive. Only time will tell if Wonder can truly outlast many legacy chains.

Lore recently noted that, Wonder had met three goals he set out for the company: delivering all 30 of its menus from one location in an average of under 30 minutes; reaching a Net Promoter Score of 60 or more; and becoming profitable at the unit level. 

Lore is not a rookie entrepreneur, he has made a name for himself scaling startups like Diapers.com and Jet.com, which he sold to Amazon and Walmart, respectively. He then became CEO of Walmart’s ecommerce business before leaving to lead Wonder, which he has called his biggest idea yet.

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.