HelloFresh Meals, Meal Kits, make Menu Magic

 

With new avenues of fresh food distribution opening up around the world monthly, weekly, and seemingly daily food retailers must ask themselves one question every Monday morning.  That question is what are we selling, to whom, and where?  That is according to Steven Johnson, Grocerant Guru®, at Tacoma, WA based Foodservice Solutions®.

HelloFresh, was at one time only a Berlin, Germany based meal kit company.  Is doing all the right things according to the Grocerant Guru® because it clearly appears that they are not only asking all the right questions on Monday mornings, but following up with action that is garnering top line sales and bottom-line profits.

Regular readers of this blog know that HelloFresh now has a growing U.S. presence. They are now entering the highly competitive online grocery business today with the launch of HelloFresh Market. So, HelloFresh Market is a digital store that offers customers a range of add-ons to the meal kit order they already receive on their doorstep—from quick meals to pantry essentials, fresh produce and ready-to-heat meals. That will drive incremental sales of Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared meals according to Johnson.

Uwe Voss, CEO of HelloFresh U.S said during an interview, “Ultimately for us the goal is to move to a broader food solutions group instead of a dinner solutions group,”… “We hope to take customers to other meal occasions. Right now, they receive three to five dinnertime recipes from us, but we don’t have an option for you if you want a solution for lunch, breakfast or complements to dinner such as sides, soups and salads. We know customers are interested in this.”

Winning the Battle for

Share of Stomach

 

This developing business strategy is so important as introduction of HelloFresh Market is part of HelloFresh’s midterm growth strategy, and an important step for the company with ambitions to become “the world’s leading fully integrated food solutions group.” We ask you what are your next steps?  What new avenues of distribution are you going to be expanding your brand?

HelloFresh is aiming to grab a “larger share of the dollar spend,” HelloFresh Market seeks to offer greater value and convenience to customers as a one-stop option for both curated grocery items and mealtime inspiration, Voss stated. Regular readers of this blog know we call this garnering a larger share of stomach.

The HelloFresh Market will launch with what Voss describes as a “very curated set of grocery items.” But the company’s sights are set quite literally on the bread and butter of the grocery business. Which means cherry picking the most requested replenished grocery items.  Basically, they are going to do to the grocery store sector the same thing dollar stores did.  That is be open, upfront, and win market share.

Voss continued, “Our end game isn’t 150 items. We see growing to 1,000 to 2,000 SKUs over time, into items like bread and butter, dairy—high-frequency purchase items, adding that the HelloFresh Market grocery offerings are a “starting point” of items that should feel familiar to customers as they have already enjoyed them in HelloFresh meal kits.

Most food retailers now that know that selling 50 kinds of bread does nothing to drive top-line sales or bottom-line profits. Voss reiterated, “We’re not going to sell 50 types of bread and we don’t want to lose sight of what’s comfortable for our customers who stay with us for frequency of choice,”  “The Market is very curated and fun—just like our cooking experiences.”

The introduction of HelloFresh Market in the U.S. follows the successful launch in the Benelux region, of Europe, where customers could choose from over 150 add-on items to complement their weekly meal kit recipes. Within that region, HelloFresh observed a strong link between the size of the product range and the proportion of customers purchasing add-ons through the Market, which the company will look to replicate in the U.S. As a result, HelloFresh is significantly expanding its product range across categories to provide customers with a variety of items tailored to enhance the shopping and cooking experience.

So, for HelloFresh, the beauty of its meal kit box model is the existing infrastructure to make its expansion into grocery delivery seamless for both the company and its customers.

Voss continued, “Building an exceptional meal-kit experience over the past 10 years has been key to establishing strong market leadership,”. “Through our state-of-the-art supply chain and technology infrastructure, we will provide superior full-service delivery for all meal occasions and capture a greater share of our customers’ overall food budget.”

“HelloFresh is leveraging the box to cover more food occasions,” …“Generally, as a business, we’re always looking to move closer to the customer and shorten the time it takes to get items delivered. With Market, it’s exactly the same as getting a HelloFresh box delivered. We got the whole supply chain taken care of. It’s just a matter of tagging additional high-value items on an existing order. “And it makes economic sense,”

So, how much will all this cost? HelloFresh customers can add grocery items to their meal kit orders without incurring additional shipping charges. “Say, you buy a cheesecake. It doesn’t come at an extra cost. The only thing you pay for is the cost of the cheesecake. We don’t charge extra for shipping according to the statement from HelloFresh.  

The range of HelloFresh Market offerings that will be rolling out to all customers across the U.S. over the coming months. Its curated offerings are categorized into Seasonal Bundles (cheese burgers, baby back ribs and mac and cheese); Quick Meals, Quick Breakfast (cheesy breakfast tacos, kale salad, cheese tortellini with marinara sauce and assorted Intelligentsia coffees); Sides & Complements, Desserts & Treats (garlic bread, gumbo, salads and sweets such as chocolate chip cookie dough and cheesecake); Proteins, Fresh Produce (chicken, ground turkey, apples and avocados); Grains & Pastas & Breads, Cheese (Jasmine rice, brioche buns and ricotta cheese); and Pantry Essentials, HelloFresh Flavors (olive oil, salt, pepper and seasonings).

Add things you know and like will help HelloFresh Market which will feature partnerships with a growing list of high-quality purveyors, such as Epicurean Butter, Pillsbury, Intelligentsia Coffee, Annie’s, Vive Wellness Shots and more, to offer a rotating assortment of new and exciting options, the company said.

HelloFresh has extensive experience in keeping its customers coming back for more. Its customers already rate its meal kit products every week, and Voss said the same ratings will apply to grocery items. “If a recipe doesn’t perform in our meal kits, it doesn’t come back. If there’s not enough interest in a grocery item, we will not continue to carry it.

“Our assortment is going to get more and more powerful because it’s cultivated by our customer,” added Voss. “We have to put a stake in the ground starting with 150 items. Not all 150 will be home runs out of the gate. We’ll continue to go deeper and deeper into what customers like.”

The grocerant niche is filled with Ready-2-Eat and Heat-N-Eat fresh prepared food that is portable, much of which has the halo of better for you around it.  HelloFresh Market is focused you garnering a larger share of stomach.  We think they are the right track.

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

QuickChek Meal’s Menu Mainlined with Delivery

Restaurants search for answers and convenience stores the ilk of QuickChek Corp. expand customer relevance with new electricity, delivering a fresh fast solution for dinner meals and more according to Steven Johnson, Grocerant Guru® Tacoma, WA based Foodservice Solutions®.

That new electricity comes via a new partnership with DoorDash to offer its complete foodservice menu for delivery. Why is this important third party delivery is an incremental step that drives top line sales and bottom line profits according to Johnson. It’s the start, milk, eggs, soap will be next to increase the basket size and most importantly drive the all-important mix & match bunding so important for consumers buying within the grocerant niche.

Delivery is the latest convenient purchase option from QuickChek Corp., following the introduction of in-store self-checkout counters, mobile ordering and curbside pickup. Remember in 2020 saving time is at the core of everything for the consumer even if they have been staying home.

QuickChek CEO Dean Durling stated "We let you choose your convenience, and with our new partnership with DoorDash, we can deliver whatever you're in the mood for right to your door, whenever and wherever you want,".

Third party Apps the ilk of DoorDash’s mobile app have become a platform that consumers expect to find a  full range of items including QuickChek's custom-made sub sandwiches and wraps made with seasonal ingredients and fresh meats and cheeses; comfort foods such as mac-and-cheese; fresh baked QuickChek snacks, including French fries, empanadas, and mozzarella sticks; and handcrafted QuickChek beverages, including real fruit smoothies, milkshakes and decadent treats.

Since the delivery rollout began, 12-inch subs, six-packs of fresh baked QuickChek chocolate chunk cookies, and pints of ice cream are among the most popular items. Safe food delivery options are paramount during the COVID-19 pandemic, according to QuickChek, which noted that it has added a speedy, contactless way for consumers to enjoy their favorite foods as well as bypass a trip to the supermarket.

Battle for Share of Stomach

Durling continued "Whether you want to visit your neighborhood store, pick up restaurant-quality food and essential household products at curbside, or have your comfort food cravings delivered, we can provide you with the fast, safe and healthy shopping environment you seek,"

Driving new electricity into a legacy brand with a partnership is a good move and will accelerate the marketing messaging for all companies involved according to Johnson. How is your company positioning to grow your brand, the top, and bottom line?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, online ordering, delivery, plant based foods, sampling, toy’s, cereal, developing brands,  grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

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 that 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.

Dunkin’s Breakfast Buzz Drives New Electricity

Chain restaurants ability to drive customer relevance, create consumer focused ‘buzz’ is made a lot simpler when they develop a partnership that co-develops a product or brand message according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Breakfast is back and cereal is the renewed consumer touchpoint of relevance according to Nielsen. Thus Dunkin’ brands is an on-going quest to drive new electricity into the Dunkin brand has reached out to Post Consumer Brands to help drive new electricity.

So, get this Post Consumer Brands and Dunkin’ are brewing up two new cereals made with Dunkin’ coffee, set to roll out nationwide beginning in August. The two new Post cereals are Dunkin’ Caramel Macchiato and Mocha Latte.  They were inspired by Dunkin’ fans’ two favorite flavors and mark the first collaboration between Post and Dunkin’. How are you edifying your brand and creating a platform of new electricity?

Driving new electricity into a legacy brand with a partnership is a good move and will accelerate the marketing messaging for all companies involved according to Johnson. How is your company positioning to grow your brand, the top, and bottom line?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, online ordering, delivery, plant based foods, sampling, toy’s, cereal, developing brands,  grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

Post Dunkin’ Caramel Macchiato cereal is brought to life with crunchy cereal pieces and caramel-swirled marshmallows, creating the deliciously indulgent taste of the layered iced coffee beverage. Post Dunkin’ Mocha Latte cereal features a hint of chocolate and latte-swirled marshmallows in honor of its namesake espresso. The new cereals contain very small amounts of caffeine, roughly a 10th of a cup of coffee, so all can indulge in the rich coffee-forward experience.

Josh Jans, Brand Manager of Cereal Partnerships at Post Consumer Brands  stated “Coffee and cereal are the ultimate breakfast go-tos, ranking as the top two most consumed items to help people start their day,”  “Dunkin’ coffee is a daily ritual for Americans, and we’re excited to be partnering with them to indulge their fans’ coffee cravings. Getting the flavor right on our new cereals was a top priority, and we think we’ve nailed the rich, smooth and creamy taste.”

“Brian Gilbert, Vice President of Retail Business Development at Dunkin’ stated “We love delighting customers with surprising new ways to enjoy the great taste of Dunkin’. For our fans who already start their days with Dunkin’, this gives them another way to experience their favorite flavors,” … “The Post Cereals team has done an excellent job of paying homage to the Caramel Macchiato and Mocha Latte with these new cereals. We can’t wait to see how customers enjoy them.”

Coffee remains the beverage of choice in the United States, with nearly 65% of American adults reporting that they drink coffee every day. For the 14th year in a row, Dunkin’ was named the No. 1 brand for customer loyalty in the out-of-home coffee category, and for the 8th straight year, the Dunkin’ brand was also No. 1 in the packaged coffee category.

Consumed in nearly 90% of all U.S. households and popular with people of all ages, cereal is America’s No.1 favorite breakfast food. Today, it’s also increasingly enjoyed as a snack, lunch or dinner meal replacement, or as an ingredient in recipes.

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 that 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.

Carl’s Jr. is Leveraging Partnerships to Speed-Up Product Innovation

Restaurant customer acquisition cost continue to go up according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  One sure way to drive brand awareness, garner incremental customer is via new product introductions, sampling, relevant brand messaging. 

Today one of the best ways to speed-up new product introductions is partnering with a brand that has a build in base of loyal customers.  Carl’s is doing exactly that when they partnered with Kellogg’s to help reimage it breakfast line-up and create some new electricity for the Carl’s Jr. / Hardee’s brands.

Carl’s Jr. believes that this strategic partnership will provide new electricity driving incremental sales. What is your new electricity that is driving top line sales and bottom line profits? 

Are your customer counts growing?  So, just what is your brands 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.

Foodservice 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.  That will require brands to embrace new fresh food partnerships more now than ever before according to Johnson.

Carl’s Jr. and Hardee’s with the launch of Froot Loops Mini Donuts. In partnership with Kellogg’s Froot Loops Mini Donuts are adding a fresh spin on the iconic breakfast favorite by bringing a pop of color and a hint of '90s nostalgia to consumers nationwide all while extending, edifying ,and exploring new branded messaging.

Carl’s Jr. Froot Loops Mini Donuts taste just like the cereal consumers remember from childhood and are perfect for breakfast, snack time and beyond. This new branded craveable menu item comes in the five-iconic colors of your childhood: red, blue, green, purple, and yellow.

Jeff Jenkins, chief marketing officer for Carl’s Jr. and Hardee’s  stated “We’re continuing to look for ways to bring innovative, delicious items to our consumers,” .. “We know today’s consumers are craving nostalgia, and Froot Loops Mini Donuts feature flavors that will bring them back to their childhood, and introduce a little extra fun at snack time.”

The two global brands are also launching #NotMilk, a playful digital campaign with an unexpected twist on the iconic dairy ads, showcasing that milk is not required for these colorful snacks. Partnering with a number of celebrities including '90s heartthrob Mario Lopez, Carl’s Jr. and Hardee’s are asking fans across the country to show their best #NotMilk mustache on Instagram and Twitter using the #NotMilk and #FrootLoopsMiniDonuts, for a chance to be featured on the brands’ social channels.

Froot Loops Mini Donuts are in stores now.  So, how are you creating a platform to drive down the cost of customer acquisition?  Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how www.FoodserviceSolutions.us 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:  www.FoodserviceSolutions.us for more information.

Did the Egg McMuffin Devastate the Cereal Business?

Consumer packaged goods companies have seen declining sales, mergers, acquisitions and continued customer migration.  When thinking about breakfast many customers fell in love the McDonald’s Egg McMuffin and today prefer a handheld breakfast sandwich to a bowl of cereal according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Customers have mixed feelings on breakfast, with some calling it the most important meal of the day and others skipping it entirely. Packaged Facts recently found that most “breakfast believers belong to the baby boomer generation or families with children.

Now how do legacy CPG companies plan to get back those fast food breakfast customers? In new research by Packaged Facts projects that one way is with “drinkable yogurt”.  The drinkable yogurt market will grow another 13% by 2022. New drinkable yogurt products can capitalize off of the nostalgia young adults may have for products such as Danimals, while also appealing to their more grown-up taste buds, nutritional interests and busy schedules according to Package Facts.

Drinkable yogurt pose a greater threat for restaurants as they for the most part do not sell packaged drinks and that just might be the leg-up legacy CPG retailers have been looking for according to Johnson. David Sprinkle, research director for Packaged Facts stated “There is much room for innovation in breakfast foods,” “With the reputation for the most important meal of the day, maximizing the reputation of a product’s nutrition while highlighting its’ convenience, is critical in appealing to demographics across the board.”

Club stores sales of frozen breakfast croissants, handheld egg McMuffin copycats, and breakfast burritos are up over 123% over the past five years according to Foodservice Solutions® Grocerant Scorecards. While cereal remains the most popular breakfast food, parents want kids have a fewer carbs, and more protein for breakfast and they are evolving breakfast buying habits fast. 

How are you going to address the next new wave of breakfast food consumption?  Are you going to continue selling what you have always sold and selling it the same way? How do you think that is going to work for you?

Interested in learning how Foodservice Solutions 5P’s of Food Marketing 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:  www.FoodserviceSolutions.us for more information.