Stay Relevant, Raise Sales, and Drive Profits with the Grocerant Guru®

 

Why should foodservice retailers think about Google? The answer is simple: Millennials and Gen Z engage with their smartphones more than they do with actual humans. A recent study found that 39% of people interact more with a smartphone than with their loved ones, friends, or coworkers. Smartphones are handheld marketing powerhouses, and every brand must have a handheld marketing toolkit to stay competitive.

The Grocerant Guru® at Foodservice Solutions® identified, quantified, and named the Grocerant Niche—focused on Ready-2-Eat and Heat-N-Eat fresh prepared food. This rapidly growing sector continues to attract customers across all retail foodservice segments. However, marketing to this evolving customer base has become more complex than ever.

The Power of Handheld Marketing

We live in an era where digital immediacy defines consumer behavior. One-on-one marketing has transformed into real-time engagement. Consider this: 51% of all mobile searches on Google are for restaurants. When consumers search on Google, they’re ready to buy. If your business isn’t visible, you’re missing out on sales opportunities.

Moreover, The NPD Group reports that 79% of all restaurant meals are sold at fast food outlets. Grocery delis, convenience stores, and restaurants must integrate handheld marketing strategies to stay connected with their customers.

7 Reasons Food Retailers Need the Grocerant Guru®

1.       Mastering Handheld Marketing – We help you create a seamless, engaging mobile marketing strategy that reaches customers in real-time.

2.       Enhancing Brand Relevance – Stay ahead of shifting consumer preferences with insights that ensure your brand remains modern and compelling.

3.       Optimizing Google Search Presence – With 51% of searches focused on food, we position your brand to be discovered and clicked on.

4.       Driving Higher Sales – Our expertise in the Grocerant Niche fuels strategies that increase revenue through consumer-driven meal solutions.

5.       Innovating with Omni-Channel Marketing – From social media to digital ordering platforms, we build a dynamic conduit that integrates all marketing channels.

6.       Tapping into Convenience Trends – We leverage the latest data on Ready-2-Eat and Heat-N-Eat meals to ensure your offerings meet consumer demand.

7.       Future-Proofing Your Business – By continuously Looking A Customer Ahead™, we prepare your brand for long-term success in a rapidly evolving market.

The information superhighway is now handheld, and the Grocerant Guru® has been leading the charge since 1991. If you’re ready to edify your brand and drive consumer engagement through the 5P’s of Food Marketing, reach out to us today.

Contact Us:
Email: Steve@FoodserviceSolutions.us
Visit: www.FoodserviceSolutions.us

Kroger: Stuck in the Middle and Facing a Bleak Future

 

Kroger, one of the largest retail giants globally, finds itself in a precarious position. Whether or not the proposed merger with Albertsons comes to fruition, the future appears uncertain for several reasons, according to Steven Johnson, the Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®. Here are ten key factors contributing to this outlook:

1.       Overabundance of Brands: Kroger's brand strategy is deeply rooted in its commitment to freshness, quality, and customer-centricity. However, managing an extensive portfolio of brands can dilute focus and resources, leading to inconsistencies in quality and customer experience. This overextension hinders the company from capitalizing on its core strengths.

2.       Failed Grocerant Fresh Food Expansion: Despite significant efforts to expand its fresh food offerings, Kroger has faced challenges in implementing this strategy effectively. In markets like Florida and Oklahoma, the company's attempts have met with mixed results, highlighting a need for a more tailored approach to market entry.

3.       Misplaced Marketing Messaging: Kroger’s marketing campaigns emphasize competitive prices and quality products. However, this messaging often fails to resonate with modern consumers who seek more personalized and value-driven experiences. This disconnect between brand image and customer perception is a critical issue.

4.       Outdated Store Design and Operation: Many Kroger stores still operate under outdated models, failing to adapt to the evolving retail landscape. This lack of modernization deters customers who crave a contemporary shopping experience. Investing in store redesign and operation upgrades is essential to stay relevant.

5.       Inefficient Use of Technology: While Kroger has made strides in incorporating technology into its operations, such as automated checkout systems and self-driving delivery vehicles, these initiatives are not fully optimized. Inefficiencies in technology deployment lead to customer dissatisfaction and operational challenges.

6.       Inadequate Online Presence: Despite launching initiatives like Kroger Ship, the company’s online presence pales in comparison to competitors like Amazon and Walmart. Enhancing the digital experience is crucial as the retail market becomes increasingly digital-centric.

7.       Lack of Localized Strategy: Kroger’s broad national footprint sometimes hinders its ability to cater to local tastes and preferences. Developing a more localized strategy would enable the company to better meet the needs of diverse markets and enhance customer loyalty.

8.       Inconsistent Customer Experience: With its wide range of products and services, Kroger struggles to maintain a consistent customer experience across its various brands and store formats. This inconsistency can erode customer trust and satisfaction.

9.       Weak Supply Chain Management: Inefficiencies in Kroger’s supply chain management lead to issues like stockouts and overstocks. These problems negatively impact customer satisfaction and the company's bottom line, emphasizing the need for robust supply chain optimization.

10.   Slow Response to Market Trends: Kroger has been slow to respond to emerging market trends, such as the growing demand for organic and locally sourced foods. This lack of agility can put the company at a disadvantage in the fast-paced retail industry.

Grocerant Guru’s Recommendations for Kroger’s Incremental Success:

1.       Streamline Brand Portfolio: Focus on a core set of brands that align with Kroger’s commitment to quality and customer-centricity. This will help in delivering consistent quality and a unified customer experience.

2.       Enhance Fresh Food Strategy: Adopt a localized approach to the grocerant fresh food expansion. Understand the unique preferences of each market and tailor offerings accordingly to increase market penetration and customer satisfaction.

3.       Modernize and Innovate: Invest in modernizing store designs and operations. Implement cutting-edge technology to streamline processes and enhance the shopping experience. Prioritize customer feedback to ensure that these innovations meet their needs.

Kroger has a rich history and a strong presence in the retail market, but significant challenges threaten its future success. To overcome these obstacles, the company must reassess its strategies and make necessary changes to remain competitive in the evolving retail landscape. The Foodservice Solutions® team is here to help drive top-line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolution.us Remember, success leaves clues, and we might have the clue you need to propel your continued success.

Why Does Food Outlet Brand Marketing Messaging Matter

 

At the intersection of new customer acquisition, emerging food trends, and consumer migration brand messaging plays an increasingly important role according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Johnson stated, Brand marketing messaging is crucial for several reasons. It acts as the voice of your brand, shaping how customers perceive you and influencing their decisions. Here's a breakdown of its importance:

1.     Clarity and Connection: Clear messaging communicates your brand's unique value proposition - what makes you different and why customers should choose you. It helps them understand your brand's purpose and values, fostering a connection that goes beyond just a product or service.

2.     Standing Out: In a crowded marketplace, strong messaging helps you differentiate yourself from competitors. By highlighting what makes you special, you capture attention and attract customers who resonate with your brand.

3.     Building Trust and Loyalty: Consistent messaging across all platforms builds trust with your audience. When customers see a unified brand voice, they feel confident about who you are and what you represent, leading to increased loyalty.

4.     Emotional Influence: Effective messaging goes beyond just features and benefits. It taps into emotions and tells a story. By connecting with customers on a deeper level, you create a more memorable brand experience that drives action.

In essence, brand marketing messaging is the foundation of your marketing efforts. It shapes how you're perceived, builds relationships with your target audience, and ultimately influences their decision to choose you over the competition.

Restaurant owners and food outlet operators are always on the lookout for special events they can use in their online and offline marketing efforts.  Here are daily ideations for April from RestaurantNews.com

Here’s your restaurant marketing calendar for April

§  Download Print Version

National BLT Sandwich Month
National Soft Pretzel Month
National Soyfoods Month
National Grilled Cheese Month
National Garlic Month
Jazz Appreciation Month
Couple Appreciation Month
Poetry Month
Straw Hat Month

1 – April Fools Day
1 – National Sourdough Bread Day
1 – National One Cent Day
2 – National Peanut Butter and Jelly Day
2 – World Autism Awareness Day
2 – International Children’s Book Day
3 – Fish Fingers and Custard Day
3 – National Chocolate Mousse Day
3 – World Party Day
3 – National Day Of Hope
4 – National Cordon Bleu Day
4 – School Librarian Day
5 – National Caramel Day
5 – National Deep Dish Pizza Day
5 – National Raisin & Spice Bar Day
5 – Go For Broke Day
6 – New Beer’s Eve
6 – Fresh Tomato Day
6 – National Caramel Popcorn Day
6 – International Pillow Fight Day
7 – National Beer Day
7 – National Coffee Cake Day

7 – World Health Day
7 – No Housework Day
8 – National Empanada Day
8 – Zoo Lovers Day
9 – National Chinese Almond Cookie Day
9 – National Library Workers Day
9 – Be Kind To Lawyers Day
9 – Name Yourself Day
10 – National Cinnamon Crescent Day
10 – National Bookmobile Day
10 – National Siblings Day
10 – Golfer’s Day
11 – National Cheese Fondue Day
11 – National Submarine Day
11 – International Louie Louie Day
11 – Barbershop Quartet Day
12 – National Grilled Cheese Sandwich Day
12 – National Licorice Day
12 – International Day of Human Space Flight
12 – Walk On Your Wild Side Day
13 – National Peach Cobbler Day
13 – National Scrabble Day
14 – National Pecan Day
14 – National Dolphin Day
15 – Tax Day
15 – National Glazed Spiral Ham Day
15 – Titanic Remembrance Day
15 – Take A Wild Guess Day
16 – National Eggs Benedict Day
16 – Save The Elephant Day
17 – National Cheeseball Day
17 – Ford Mustang Day
18 – National Animal Cracker Day
18 – Columnists Day
18 – Auctioneers Day
18 – Amateur Radio Day

Set Your Self Apart

Messaging Matters 

19 – National Garlic Day
19 – National Rice Ball Day
19 – Hanging Out Day
20 – National Pineapple Upside-Down Cake Day
20 – Volunteer Recognition Day
20 – National High Five Day
20 – Look Alike Day
21 – National Chocolate-Covered Cashew Truffle Day
21 – Kindergarten Day
22 – National Jelly Bean Day
22 – Girl Scout Leader Day
22 – Earth Day
23 – National Cherry Cheesecake Day
23 – National Picnic Day
23 – Talk Like Shakespeare Day
24 – National Pigs in a Blanket Day
24 – International Guide Dogs Day

24 – Administrative Professionals Day
25 – National Zucchini Bread Day
25 – Hug A Plumber Day
25 – World Penguin Day
26 – National Pretzel Day
26 – National Arbor Day
27 – National Prime Rib Day
27 – World Veterinary Day
27 – Tell A Story Day
27 – Go Birding Day
28 – National Blueberry Pie Day
28 – Kiss Your Mate Day
28 – Cubicle Day
29 – National Shrimp Scampi Day
29 – Poem In Your Pocket Day
29 – World Wish Day
29 – International Dance Day
30 – National Oatmeal Cookie Day
30 – National Raisin Day
30 – International Jazz Day
30 – National Honesty Day

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

Dollar General 'Food First' Strategy Threatens Legacy Food Retailers

 

Inflation, inflation, inflation is top of mind with consumers and Dollar General is targeting all food retailers with legacy stuck in the middle pricing. That’s right according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® legacy grocery stores and C-stores that have not elevated their food retail positioning and are still clinging profits form slotting fees and middle of the road pricing are soon going to be in for a big surprise.

In case you have not heard, Dollar General is putting “Food First” by investing heavily in store brands. The discount retailer has expanded its private label Clover Valley to include national-brand alternatives, debuting more than 100 new items for 2023. This includes a wider selection of sauces, condiments, entrees, sides, snacks and more at what the company described as affordable price points, with many also featuring stylish new packaging designs.

Jackie Li, SVP of private brands and global sourcing for Dollar General, stated, “When Dollar General pioneered the ‘dollar store’ format in 1955, few food products were offered. With continual growth and changes to the company’s business model, our product selection has evolved,” ... “Customers shared that they believe in the quality and equity of Clover Valley and were receptive to more innovative products. We have put ‘Food First’ this year because we see a need and to fulfill the desire for even more options.”

So, Dollar General’s Food First initiative is a broader strategy to provide customers with healthier options, including more food products and fresh food. While the company isn’t a grocer, approximately 80% of Dollar General stores serve communities of 20,000 or fewer people, with many Americans, especially in rural areas, relying on the retailer for their basic, everyday and household essentials.

Did you realize that consumables recently accounted for approximately 80% of total sales at Dollar General and the company’s research indicates that Dollar General offers a price advantage over most food and drug retailers, offering prices that are competitive with even the largest discount retailers. ChaseDesign’s 2023 Dollar Store Channel Survey also found that grocery is now the top category shopped in the overall dollar store sector.

Therefore, it’s no surprise that 80% of new Dollar General stores and nearly all of its store relocations for FY23 will be in one of the retailer’s larger store formats, providing the opportunity for a significant increase in cooler count, as well as the ability to add fresh produce in many stores.

Now according to Dollar General, as of the first quarter of 2023, it offers fruits and vegetables in nearly 3,900 stores, with plans to have produce in 5,000 locations by January 2024, giving the company more individual points of produce distribution than any other U.S. mass retailer or grocer.

Why c-stores and grocery stores should worry, Dollar General’s Clover Valley private brand, which was introduced in 2009, has expanded to include approximately 600 items. Examples of the latest on-trend additions include Lobster Bites; Crab Cakes; Chicken Dipping Sauce; Siracha Chili Sauce; Parmesan Garlic, Mild Buffalo and Medium Wing Sauces; Cookies ‘n Crème and Turtle Sundae Trail Mixes; BBQ, Dill Pickle or Ranch Sunflower Seeds; Spicy Nacho Cheese or Chili & Lime Rolled Corn Tortilla Chips; Mandarin Orange or General Tso’s Chicken Bites with Rice; Black Bean & Corn Salsa; Berry Blast or Tropical Fruit Flavor Snacks; Peanut Butter & Jelly Wafer Sticks & Dip; Peanut Butter Spread with Honey; and 100% Whole Wheat Sandwich Bread. Additionally, all Clover Valley products come with a 100% satisfaction guarantee.

Emily Taylor, EVP and chief merchandising officer at Dollar General, stated, “We have made significant enhancements to our private brands in 2023, and we know how important these value offerings are for our customers,” ... “We believe these products will further differentiate Dollar General in the marketplace as we look to provide our customers with tremendous value on quality products.”

Research confirms the popularity of store brands, with dollar share reaching record levels this year. The Private Label Manufacturers Association (PLMA) shared data from Circana showing that dollar sales of store brands outpaced national brands during the six-month period ending June 18. Moreover, store brands’ dollar sales increased to a record level (18.8%) for the first part of 2023. Private label sales grew 8.2% on a year-over-year (YoY) basis during that time, while national-brand sales rose just 5.1%. Beverages led the charge, climbing 19% on a YoY basis, with notable gains also coming from general food (up 16%) and refrigerated products (up 16%).

As of May 5, Goodlettsville, Tenn.-based Dollar General operated 19,294 Dollar General, DG Market, DGX and pOpshelf stores across the United States, and Mi Súper Dollar General stores in Mexico. The company is No. 16 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.

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.

Food Retailers Sales at the intersection of Falling Behind and Indecision

 

It is at the intersection of consumers demand and convenience that food retailers in every channel find themselves between rock and a hard place.  That space is more often than not between the newest technology and yesterday’s business model that is riddled with legacy cost that simply can no longer be justified if you want to stay in business according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Our would today has evolved to the point where consumers like, demand, and have learned to expect; advance ordering options, fast delivery, and or subscription scheduled services.  If you don’t offer at minimum two of the options you brand simply is being over looked as an option according to Johnson.

Grocerant niche mix and match meal component bundling has disrupted the legacy food retailer’s business model.  Regular reader of this blog know that Ready-2-Eat and Heat-N-Eat fresh prepared food continues to climb in importance at grocery store service deli’s, restaurants, convenience stores.  If you are a food retailer and you are not taking advantage of new technology to allow customers more options when they order you are missing out.  I’m sorry to say that, but consumers are driving the adoption of technology must faster than most food retailers in every service want them too.

Did you know that convenience store; GetGo Café + Market, “customers can place foodservice orders via the company’s website or the GetGo app on iOS and Android up to 24 hours in advance, according to Chris Edwards, director of GetGo technology.

Now the chain’s entire expansive, fresh, made-to-order menu is available, as well as full customization options to add or remove ingredients or modify how the dish is prepared, he explained.

Brandon Daniels, GetGo Café + Market manager of public relations, stated, “A theme you’ll see carried throughout all aspects of GetGo’s business is the ability to customize,”…“Whether it’s adding their favorite ingredients to a fresh-made sub or choosing to place an order on the GetGo app, we put technologies in place to allow guests to customize their experience.”

Putting the technology for advance ordering in place has been a “top priority” for GetGo, Daniels said. Each store with a made-to-order kitchen, about half of GetGo’s more than 260 locations throughout western Pennsylvania, Ohio, northern West Virginia, Maryland and Indiana, offers the service.

Made-to-order kitchens are a staple of the GetGo Café + Market brand, and they will be included in the numerous new stores the chain plans to add, including one in Mentor, Ohio, which opened in February, and one in Mars, Pa., in May. Since the kitchens are already set up for made-to-order food, there were no additions or changes necessary to accommodate orders placed ahead of time, he noted.

The option to place orders in advance is “heavily included in our marketing efforts,” Daniels stated. Additionally, the company’s website and app both prominently display an “order now” button on their home screens.

If customers want to enjoy GetGo made-to-order menu items without leaving their homes or offices, the company has partnered with third-party delivery services.

In February, Quality Mart introduced online ordering and delivery in five of its Winston-Salem, N.C., stores out of a total of 60-plus stores located in North Carolina, Virginia and Tennessee. Delivery is available within a 20-mile radius.

The online ordering segment is powered by local startup SWIPEBY’s platform. Quality Mart is using signage, a QR code and video at the fuel pumps to demonstrate to customers that it’s easy to place an order for pickup or delivery.

“This is an added level of convenience that we think will help us stand out from the competition and make our customers even more satisfied,” noted Sam Metzler, a senior vice president with Quality Oil Co., the parent company of Quality Mart convenience stores, in a statement.

So, Delivery Entices Customers Everywhere EG America, the Blackburn, U.K.-based parent company of numerous U.S. convenience store chains, including Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf N’ Jug, Minit Mart, Quik Stop, Sprint, Turkey Hill and Tom Thumb, partners with DoorDash for delivery of a wide variety of foodservice items. Customers can order anything from sandwiches to snacks and pizza to coffee through DoorDash’s app and website.

Ninety percent of Cumberland Farms’ 58 locations in New England, New York and Florida work with DoorDash to offer delivery, said Stephen Skidds, Cumberland Farms’ director of food service. The company plans to add the delivery option “accordingly” as it opens new stores and as DoorDash expands its store coverage.

Cumberland Farms launched the pilot program with DoorDash in the fall of 2021. The service was rolled out chainwide in the summer of 2022.

“It has helped produce incremental sales in food and beverage and has created convenience for our guests to be able to place their order from home and have it delivered,” Skidds remarked.

The delivery service, he said, was introduced to allow Cumberland Farms to “adjust to the buying habits of guests since the pandemic and give our guests more convenient options to purchase.” Offering the service has had “very little operational impact” on the stores, he pointed out.

To inform customers about the delivery option and encourage trial, Cumberland Farms uses in-app promotions, in-store signage and other digital channels.

Another convenience option some chains are introducing is a subscription program. Circle K, for instance, offers a Sip and Save subscription which entitles enrolled customers to one drink every day for 30 days for $9.99 (less than 35 cents per day).

The program includes any size hot and iced coffee, cappuccinos, Polar Pop, hot and iced tea and aguas frescas. Refills up to 64 ounces are also included. Customers can enroll online or in the store.

Now here is the point.  Technology is expensive, changing to fast; however, if you wait to long you may never recover.  Don’t wait for the next big thing, take a new step often.

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